Spring market on pause?

[Anonymous]

In my neighborhood townhouses are sitting. But that’s bc they’re pricing them higher than I’d expect

[Anonymous]

There's simply not that much for sale. The rare gems that pop up are usually pending by the next day. And most of the other stuff is overpriced and sitting.

[Anonymous]

People are overpricing and properties are sitting on the market. I would check the pricing history, and it would show people trying to list their property at double the price they bought just a year or two ago. It's greed and I am happy their properties are sitting and sitting....

[Anonymous]

Anonymous wrote:People are overpricing and properties are sitting on the market. I would check the pricing history, and it would show people trying to list their property at double the price they bought just a year or two ago. It's greed and I am happy their properties are sitting and sitting....

It really depends where. Seems the trend is moving from within DC to the burbs.

Where we're looking to buy in NOVA - and I'm not even talking about the rich areas like Arlington/Mclean, I'm talking outside the beltway under $1M SFHs, properties are all going under contract within days of listing and all selling over.

Within DC, properties are sitting. It feels like a mass exodus though I know that actual recent population stats show DC population increasing, so might just be perception or people being pickier about where they buy.

[Anonymous]

It definitely feels like two different economies - 1. people paying 2.75% and with plenty of excess monthly liquidity
2. people paying 7% interest and have very strapped monthly budgets

We are in #1 and it feels like we are living in a different world than folks we know in #2.

[Anonymous]

Anonymous wrote:

Anonymous wrote:People are overpricing and properties are sitting on the market. I would check the pricing history, and it would show people trying to list their property at double the price they bought just a year or two ago. It's greed and I am happy their properties are sitting and sitting....

It really depends where. Seems the trend is moving from within DC to the burbs.

Where we're looking to buy in NOVA - and I'm not even talking about the rich areas like Arlington/Mclean, I'm talking outside the beltway under $1M SFHs, properties are all going under contract within days of listing and all selling over.

Within DC, properties are sitting. It feels like a mass exodus though I know that actual recent population stats show DC population increasing, so might just be perception or people being pickier about where they buy.

I think as a lot of employers have settled into hybrid arrangements, combined with crime challenges in DC, more families are choosing the suburbs.

With the population trends, I think younger renters in their 20s and 30s are increasingly choosing to live in DC proper (there are tons of new apartment buildings that have gone up in DC over the past handful of years and they are filling up).

…and homebuyers are increasingly choosing the suburbs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People are overpricing and properties are sitting on the market. I would check the pricing history, and it would show people trying to list their property at double the price they bought just a year or two ago. It's greed and I am happy their properties are sitting and sitting....

It really depends where. Seems the trend is moving from within DC to the burbs.

Where we're looking to buy in NOVA - and I'm not even talking about the rich areas like Arlington/Mclean, I'm talking outside the beltway under $1M SFHs, properties are all going under contract within days of listing and all selling over.

Within DC, properties are sitting. It feels like a mass exodus though I know that actual recent population stats show DC population increasing, so might just be perception or people being pickier about where they buy.

I think as a lot of employers have settled into hybrid arrangements, combined with crime challenges in DC, more families are choosing the suburbs.

With the population trends, I think younger renters in their 20s and 30s are increasingly choosing to live in DC proper (there are tons of new apartment buildings that have gone up in DC over the past handful of years and they are filling up).

…and homebuyers are increasingly choosing the suburbs.

Yup, only going into DC 1 or 2 days a week makes it pretty easy to move out to the exburbs if that's your thing. Country living and only commuting 2 days a week? Easy peasy

[Anonymous]

Anonymous wrote:

Anonymous wrote:golden handcuffs bro...low rates locked in and cant afford the same.

+1. I can’t even afford to rebuy my house at current rates and prices. Bought my house in 2013, should have moved in 2018 to a bigger house but instead did an addition. With my current rate and what I owe, I couldn’t afford to rebuy!

Same here. We're probably going to do an addition instead.

[Anonymous]

Anonymous wrote:

Anonymous wrote:People are overpricing and properties are sitting on the market. I would check the pricing history, and it would show people trying to list their property at double the price they bought just a year or two ago. It's greed and I am happy their properties are sitting and sitting....

It really depends where. Seems the trend is moving from within DC to the burbs.

Where we're looking to buy in NOVA - and I'm not even talking about the rich areas like Arlington/Mclean, I'm talking outside the beltway under $1M SFHs, properties are all going under contract within days of listing and all selling over.

Within DC, properties are sitting. It feels like a mass exodus though I know that actual recent population stats show DC population increasing, so might just be perception or people being pickier about where they buy.

I can say in my Fairfax zip code I am somewhat blown away at the market situation. Redfin has the area at a 95 rating on the competitiveness score. We just had a new neighbor move in and she introduced herself by explaining to us how hard it was for her to buy and she was practically in tears at how happy she was that they'd finally gotten a house. I don't think I've ever seen it hotter around me.

[Anonymous]

Inventory is low but I also think that some buyers are waiting to see if interest rates come down later this year.

I am in 20817 in Bethesda and a lot of more expensive homes ($2.5 million and up) are sitting. Borrowing at current rates is really expensive so unless people are coming with a lot of cash down, they are slow to jump for these properties.

[Anonymous]

Houses for under $1.5M in upper NW going fast; houses at $2M+ are sitting; houses at $3M are getting price adjustments.
PPs who talked about holding onto homes with low interest rate mortgages are right. Who'd give that up when home prices haven't come down low enough to compensate for the 6.5% rates?

[Anonymous]

Anonymous wrote:Houses for under $1.5M in upper NW going fast; houses at $2M+ are sitting; houses at $3M are getting price adjustments.
PPs who talked about holding onto homes with low interest rate mortgages are right. Who'd give that up when home prices haven't come down low enough to compensate for the 6.5% rates?

7.5% for 30 year now.

I'd be insane to give up my 2.75% even if I do want a bigger house. Oh well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People are overpricing and properties are sitting on the market. I would check the pricing history, and it would show people trying to list their property at double the price they bought just a year or two ago. It's greed and I am happy their properties are sitting and sitting....

It really depends where. Seems the trend is moving from within DC to the burbs.

Where we're looking to buy in NOVA - and I'm not even talking about the rich areas like Arlington/Mclean, I'm talking outside the beltway under $1M SFHs, properties are all going under contract within days of listing and all selling over.

Within DC, properties are sitting. It feels like a mass exodus though I know that actual recent population stats show DC population increasing, so might just be perception or people being pickier about where they buy.

I can say in my Fairfax zip code I am somewhat blown away at the market situation. Redfin has the area at a 95 rating on the competitiveness score. We just had a new neighbor move in and she introduced herself by explaining to us how hard it was for her to buy and she was practically in tears at how happy she was that they'd finally gotten a house. I don't think I've ever seen it hotter around me.

I expect this will be us shortly, about to start bidding in that area

[Anonymous]

Anonymous wrote:Inventory is low but I also think that some buyers are waiting to see if interest rates come down later this year.

I am in 20817 in Bethesda and a lot of more expensive homes ($2.5 million and up) are sitting. Borrowing at current rates is really expensive so unless people are coming with a lot of cash down, they are slow to jump for these properties.

TBH, this makes zero sense. If interest rates come down, there will be more competition and that leads to higher prices.

The good move right now is to buy with as big of a downpayment as possible and take out a mortgage with zero pre-paid points. Maybe do a 7/1 or 5/1 ARM if you are worried about monthly cash flow. You will eventually refinance before the ARM resets.

Given the high principal balances of mortgages in the DC area, it definitely makes sense to refinance even if the rate only goes down by 50bps on a 30Y.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Inventory is low but I also think that some buyers are waiting to see if interest rates come down later this year.

I am in 20817 in Bethesda and a lot of more expensive homes ($2.5 million and up) are sitting. Borrowing at current rates is really expensive so unless people are coming with a lot of cash down, they are slow to jump for these properties.

TBH, this makes zero sense. If interest rates come down, there will be more competition and that leads to higher prices.

The good move right now is to buy with as big of a downpayment as possible and take out a mortgage with zero pre-paid points. Maybe do a 7/1 or 5/1 ARM if you are worried about monthly cash flow. You will eventually refinance before the ARM resets.

Given the high principal balances of mortgages in the DC area, it definitely makes sense to refinance even if the rate only goes down by 50bps on a 30Y.

That is sort of my plan. I can bring 50% down to the next house. If I see the right property, I will jump. If rates go up, I'll have a lower rate. If rates go down I can refinance. Don't think prices will fall with even higher rates as inventory is so scarce and inflation still keeps prices high. But if rates fall, more people start listing and moving, keeping prices higher too!

But it has to be the right house and am willing to wait for it as sitting pretty with a 2.75.