House prices falling?

[Anonymous]

We are waiting until next fall to buy.

[Anonymous]

Anonymous wrote:We are waiting until next fall to buy.

dumb but please do that so we can get a chance to buy

[Anonymous]

Anonymous wrote:

Anonymous wrote:yeah, there are tons of first time buyers sitting on mounds of cash about to enter the market, they usually represent 40% of existing home sales but have been trending at 29%, sure that return to the mean and shoot up prices.

Unless they pack up and move elsewhere.

No other places with cheaper housing have jobs. Mobility in USA is way down from historical norms.

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/11/why-arent-americans-moving-anymore-heres-a-new-theory/

[Anonymous]

I think prices will come down. I don't think the job market is as great here as it used to be.

[Anonymous]

I agree w PP that prices will fall due to the job market and incomes not rising. that's why looking at past trends for interest rates/housing prices don't work here. There's only a certain population that can afford monthly payments for an $800k+ house and at 3.25% for 30 years with $150k down that's $3,700/month, at 7.25% that's $5,300/month. Big difference.
The only way prices go up is incomes go up or we go through another subprime lending standard mess.

[Anonymous]

Its funny you look at the chart and it shows rates falling steadily since 94 and the home prices increasing steadily since 94 and people can't see the obvious.

[Anonymous]

Anonymous wrote:Its funny you look at the chart and it shows rates falling steadily since 94 and the home prices increasing steadily since 94 and people can't see the obvious.

What? Home prices has been steadily down since 2005 and seemed to increase slightly 2012 and greatly March- June 2013 and is again falling. Houses that would have gone in a day in McLean in May/June is still sitting 2 weeks later. The interest rates are for sure putting a pressure on the housing market.

[Anonymous]

Anonymous wrote:I agree w PP that prices will fall due to the job market and incomes not rising. that's why looking at past trends for interest rates/housing prices don't work here. There's only a certain population that can afford monthly payments for an $800k+ house and at 3.25% for 30 years with $150k down that's $3,700/month, at 7.25% that's $5,300/month. Big difference.
The only way prices go up is incomes go up or we go through another subprime lending standard mess.

Agree. And congress may further limit the mortgage interest deduction for high income earners. Obama certainly wants too. Add to this the tightened mortgage standards that go into effect in January.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are waiting until next fall to buy.

dumb but please do that so we can get a chance to buy

Yeah, not dumb at all but thanks for the input!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Its funny you look at the chart and it shows rates falling steadily since 94 and the home prices increasing steadily since 94 and people can't see the obvious.

What? Home prices has been steadily down since 2005 and seemed to increase slightly 2012 and greatly March- June 2013 and is again falling. Houses that would have gone in a day in McLean in May/June is still sitting 2 weeks later. The interest rates are for sure putting a pressure on the housing market.

What??? Im guessing you didnt read page 1 of 2 of this thread to know what I was even referring to which should have been clear anyway that I was referencing from 1994. I also agreed that there is an inverse relationship with interest rates and home prices.

[Anonymous]

Want to see pricing trends? Visit www.rbiintel.com. The previous months stats on released on the 10th of the month and you can look by zip code. Look at the detailed report. You can't get the more detailed reports unless you have a subscription.
As for prices and interest rates, don't expect any significant drop off in housing values. While rates briefly jumped into the upper 4% range, the markets have calmed down and rates fell accordingly. In most markets in the DC area, we are continuing to experience an extreme shortage of available homes. This is a sellers market in most areas.

Whether you buy now or in 2014 is your choice. I expect the prices to continue to increase due to low inventory. Your bigger concern should be interest rates. A 1% increase in rates will significantly affect your payments. Consult your loan officer for more information.

[Anonymous]

AroundTheBlock wrote:Housing market always slows down this time of year. As summer very slowly transitions into fall less people are buying. Happens every year. Good thing is you can find quality properties at 10-15% discount during the off year.

Yes. I got a deal at the height of market the last week of August. Sellers had to move and close quickly. The open house was quiet because so many ppl are out of town in Late August.

[Anonymous]

Anonymous wrote:Its funny you look at the chart and it shows rates falling steadily since 94 and the home prices increasing steadily since 94 and people can't see the obvious.

Lot of things happened between 94 and today that had zero to do with interest rates. Dot.com bubble left a lot of people flush and then caused a flight to real estate when it popped; George W. Bush's housing policy and the subprime stuff that fueled the housing bubble, etc. etc. etc.

[Anonymous]

Anonymous wrote:Want to see pricing trends? Visit www.rbiintel.com. The previous months stats on released on the 10th of the month and you can look by zip code. Look at the detailed report. You can't get the more detailed reports unless you have a subscription.
As for prices and interest rates, don't expect any significant drop off in housing values. While rates briefly jumped into the upper 4% range, the markets have calmed down and rates fell accordingly. In most markets in the DC area, we are continuing to experience an extreme shortage of available homes. This is a sellers market in most areas.

Whether you buy now or in 2014 is your choice. I expect the prices to continue to increase due to low inventory. Your bigger concern should be interest rates. A 1% increase in rates will significantly affect your payments. Consult your loan officer for more information.

This sounds like a realtor or a loan officer.

[Anonymous]

keep waiting and paying that rent