I was so close and now I’m shut out

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If it was a 25 yo complaining they can't afford to buy a $1.2 million home I would absolutely have less sympathy and so would all of you fools

I would tell anyone, at any age, if they can't afford a $1.2 million home, they should find something cheaper.

It's common sense.

What if you don't want something cheaper? Why buy something you don't want?

You don’t always get what you want in life, kindergartner.

Sure, but when do you have to pay hundreds of thousands of dollars plus 6.8% in interest for it?

Everyone knew interest rates would only stay at historic lows for so long. Low rates actually lasted much longer than we expected.
During this time, OP had her down payment for a $1.2 mil house and just sat on it, waiting to see if she could get something better - one extra room, a bigger yard, better street. So yeah it sucks now rates rose so fast she can’t buy what she wanted. But it also sounds like she was a bit picky and greedy, remaining on the sidelines holding out for more, with the low interest rate clock ticking.

So I get that it stings she will now have to pay even more for less. I would be kicking myself, too.

But don’t repeat the same mistake thinking better will be just around the corner. Lock something in now before rates go any higher.

+1 (NP)

The above is a hilarious post. If you actually read the DCUM real estate forum circa 2021, numerous posters talked about it like it was the absolute worst time to buy, as you'd be buying at the "top of the market", everyone had FOMO and were paying crazy prices, don't get caught up in it, etc. I don't recall anyone saying "buy now! you won't get this good of an interest rate forever and prices are going to plateau at best"!

Many suggested low interest rates are bad for buyers because they mean you pay a higher price for the house. Correct in theory, not super helpful for buyers given the current market and lack of supply.

Thankfully bought anyway. In part because we made the mistake in 2019 and 2020 of sitting out the market and realized the hard way that trying to time the market is not a great strategy. But to say "everyone knew interest rates would only stay at historic lows for so long" is preposterous, most home buyers (including myself) enter the market with little awareness of history or any ability to project what will happen in the future.

[Anonymous]

Anonymous wrote:OP have you decided what you are going to do? We're in a similar position much lower price point. I guess we'll just keep our eyes open...

OP, post your actual budget and target area and we will help you look for options.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If it was a 25 yo complaining they can't afford to buy a $1.2 million home I would absolutely have less sympathy and so would all of you fools

I would tell anyone, at any age, if they can't afford a $1.2 million home, they should find something cheaper.

It's common sense.

What if you don't want something cheaper? Why buy something you don't want?

You don’t always get what you want in life, kindergartner.

Sure, but when do you have to pay hundreds of thousands of dollars plus 6.8% in interest for it?

Everyone knew interest rates would only stay at historic lows for so long. Low rates actually lasted much longer than we expected.
During this time, OP had her down payment for a $1.2 mil house and just sat on it, waiting to see if she could get something better - one extra room, a bigger yard, better street. So yeah it sucks now rates rose so fast she can’t buy what she wanted. But it also sounds like she was a bit picky and greedy, remaining on the sidelines holding out for more, with the low interest rate clock ticking.

So I get that it stings she will now have to pay even more for less. I would be kicking myself, too.

But don’t repeat the same mistake thinking better will be just around the corner. Lock something in now before rates go any higher.

+1 (NP)

The above is a hilarious post. If you actually read the DCUM real estate forum circa 2021, numerous posters talked about it like it was the absolute worst time to buy, as you'd be buying at the "top of the market", everyone had FOMO and were paying crazy prices, don't get caught up in it, etc. I don't recall anyone saying "buy now! you won't get this good of an interest rate forever and prices are going to plateau at best"!

Many suggested low interest rates are bad for buyers because they mean you pay a higher price for the house. Correct in theory, not super helpful for buyers given the current market and lack of supply.

Thankfully bought anyway. In part because we made the mistake in 2019 and 2020 of sitting out the market and realized the hard way that trying to time the market is not a great strategy. But to say "everyone knew interest rates would only stay at historic lows for so long" is preposterous, most home buyers (including myself) enter the market with little awareness of history or any ability to project what will happen in the future.

Oh come on. Did you never watch the news?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Was so close to buying in 2020 and 2021 and now those properties I could afford at 1.2 and 3% are at 1.7 and 6.8% and I am locked out of the UMC for the rest of my life. No equity here.

Why does a single woman need at $1.2 houses let alone a $1.7M house.

I have 2 kids. And you are missing the point. No house that was 1.2 2 years ago should be 1.7 now.

Not true at all.

You don’t get to dictate markets or appreciation

Ok so if the market pulls a 2008 I’m sure you won’t be here bellyaching about the 30% drop in your home value and how you’re now underwater. Won’t faze you one bit.

That's when I got a great deal on my current house!

[Anonymous]

If you have kids, are they already enrolled in a school district you want to stay in? Do you know which school district you want for your kids? That was the driving priority for us, and it landed us in a fixer-upper a little outside our price range, but it simplified the process. Our kids' friends live in much fancier houses! Almost every school district in the area has at least a few houses listed at 1.2 or below.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If it was a 25 yo complaining they can't afford to buy a $1.2 million home I would absolutely have less sympathy and so would all of you fools

I would tell anyone, at any age, if they can't afford a $1.2 million home, they should find something cheaper.

It's common sense.

What if you don't want something cheaper? Why buy something you don't want?

You don’t always get what you want in life, kindergartner.

Sure, but when do you have to pay hundreds of thousands of dollars plus 6.8% in interest for it?

Everyone knew interest rates would only stay at historic lows for so long. Low rates actually lasted much longer than we expected.
During this time, OP had her down payment for a $1.2 mil house and just sat on it, waiting to see if she could get something better - one extra room, a bigger yard, better street. So yeah it sucks now rates rose so fast she can’t buy what she wanted. But it also sounds like she was a bit picky and greedy, remaining on the sidelines holding out for more, with the low interest rate clock ticking.

So I get that it stings she will now have to pay even more for less. I would be kicking myself, too.

But don’t repeat the same mistake thinking better will be just around the corner. Lock something in now before rates go any higher.

+1 (NP)

The above is a hilarious post. If you actually read the DCUM real estate forum circa 2021, numerous posters talked about it like it was the absolute worst time to buy, as you'd be buying at the "top of the market", everyone had FOMO and were paying crazy prices, don't get caught up in it, etc. I don't recall anyone saying "buy now! you won't get this good of an interest rate forever and prices are going to plateau at best"!

Many suggested low interest rates are bad for buyers because they mean you pay a higher price for the house. Correct in theory, not super helpful for buyers given the current market and lack of supply.

Thankfully bought anyway. In part because we made the mistake in 2019 and 2020 of sitting out the market and realized the hard way that trying to time the market is not a great strategy. But to say "everyone knew interest rates would only stay at historic lows for so long" is preposterous, most home buyers (including myself) enter the market with little awareness of history or any ability to project what will happen in the future.

Oh come on. Did you never watch the news?

Feel free to share any 2021 articles or clips of any news broadcast that suggested to buyers that they should buy ASAP before interest rates go up. What I saw in the news was more along the lines of: https://www.cnn.com/2021/06/16/homes/us-housing-market-offers/index.html

What do homebuyers have to do to get a house in this cutthroat real estate market? Offer sellers a Caribbean vacation? Bid $1 million over the asking price? Pay a competing bidder hundreds of thousands of dollars to walk away?

What about buying two homes just to live in one?

[Anonymous]

Anonymous wrote:

Feel free to share any 2021 articles or clips of any news broadcast that suggested to buyers that they should buy ASAP before interest rates go up. What I saw in the news was more along the lines of: https://www.cnn.com/2021/06/16/homes/us-housing-market-offers/index.html

What do homebuyers have to do to get a house in this cutthroat real estate market? Offer sellers a Caribbean vacation? Bid $1 million over the asking price? Pay a competing bidder hundreds of thousands of dollars to walk away?

What about buying two homes just to live in one?

Here you go:
https://www.sfgate.com/realestate/article/Sound-Off-Why-are-interest-rates-so-low-and-how-15820006.php

The article literally ends with this sentence:
"If you haven’t taken advantage of these low rates I suggest you reach out to your lender and get the process started, you’ll be happy you did."

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Feel free to share any 2021 articles or clips of any news broadcast that suggested to buyers that they should buy ASAP before interest rates go up. What I saw in the news was more along the lines of: https://www.cnn.com/2021/06/16/homes/us-housing-market-offers/index.html

What do homebuyers have to do to get a house in this cutthroat real estate market? Offer sellers a Caribbean vacation? Bid $1 million over the asking price? Pay a competing bidder hundreds of thousands of dollars to walk away?

What about buying two homes just to live in one?

Here you go:
https://www.sfgate.com/realestate/article/Sound-Off-Why-are-interest-rates-so-low-and-how-15820006.php

The article literally ends with this sentence:
"If you haven’t taken advantage of these low rates I suggest you reach out to your lender and get the process started, you’ll be happy you did."

The one article from 2020 that you found includes the following:

Interest rates are likely to stay low for years as the economy fights its way back from the coronavirus pandemic, according to Federal Reserve Chairman Jerome Powell. He was quoted as saying “We think that the economy’s going to need low interest rates, which support economic activity for an extended period of time—it will be measured in years. However long it takes, we’re going to be there—we’re not going to prematurely withdraw the support that we think the economy needs.”

It looks like buyers will have access to low rates for years to come......perhaps not as low as they are now, but very low from a historical standpoint.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Lower you expectations or make more, maybe get married

No one wants to marry me I’m 50.

1. This is a blessing, OP. It means you won't lock all your money into a house, which is never good at your age.

2. Go to a lower cost of living area around here, where you can still have a decent commute, since you don't need to worry about schools. There are plenty of safe but affordable areas.

3. Bonus: I'm sure you'll find a lovely community, and perhaps a life partner, while doing that. Best of luck!

I do need to worry about schools. I have two kids.

You can buy plenty of homes in a 8/10 school district like Walter Johnson for less than $1M.

https://www.redfin.com/MD/Rockville/6601-Sulky-Ln-20852/home/10506547

https://www.redfin.com/MD/Rockville/6601-Sulky-Ln-20852/home/10506547

Both of these homes are nice and aren’t something to be ashamed of at all and are in 8/7/8 school clusters. You could make the second one amazing if you put $100,000 into it in upgrades and you’d still be under $1M all in.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Feel free to share any 2021 articles or clips of any news broadcast that suggested to buyers that they should buy ASAP before interest rates go up. What I saw in the news was more along the lines of: https://www.cnn.com/2021/06/16/homes/us-housing-market-offers/index.html

What do homebuyers have to do to get a house in this cutthroat real estate market? Offer sellers a Caribbean vacation? Bid $1 million over the asking price? Pay a competing bidder hundreds of thousands of dollars to walk away?

What about buying two homes just to live in one?

Here you go:
https://www.sfgate.com/realestate/article/Sound-Off-Why-are-interest-rates-so-low-and-how-15820006.php

The article literally ends with this sentence:
"If you haven’t taken advantage of these low rates I suggest you reach out to your lender and get the process started, you’ll be happy you did."

The one article from 2020 that you found includes the following:

Interest rates are likely to stay low for years as the economy fights its way back from the coronavirus pandemic, according to Federal Reserve Chairman Jerome Powell. He was quoted as saying “We think that the economy’s going to need low interest rates, which support economic activity for an extended period of time—it will be measured in years. However long it takes, we’re going to be there—we’re not going to prematurely withdraw the support that we think the economy needs.”

It looks like buyers will have access to low rates for years to come......perhaps not as low as they are now, but very low from a historical standpoint.

They did stay low and they are still low by historical standards.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Feel free to share any 2021 articles or clips of any news broadcast that suggested to buyers that they should buy ASAP before interest rates go up. What I saw in the news was more along the lines of: https://www.cnn.com/2021/06/16/homes/us-housing-market-offers/index.html

What do homebuyers have to do to get a house in this cutthroat real estate market? Offer sellers a Caribbean vacation? Bid $1 million over the asking price? Pay a competing bidder hundreds of thousands of dollars to walk away?

What about buying two homes just to live in one?

Here you go:
https://www.sfgate.com/realestate/article/Sound-Off-Why-are-interest-rates-so-low-and-how-15820006.php

The article literally ends with this sentence:
"If you haven’t taken advantage of these low rates I suggest you reach out to your lender and get the process started, you’ll be happy you did."

The one article from 2020 that you found includes the following:

Interest rates are likely to stay low for years as the economy fights its way back from the coronavirus pandemic, according to Federal Reserve Chairman Jerome Powell. He was quoted as saying “We think that the economy’s going to need low interest rates, which support economic activity for an extended period of time—it will be measured in years. However long it takes, we’re going to be there—we’re not going to prematurely withdraw the support that we think the economy needs.”

It looks like buyers will have access to low rates for years to come......perhaps not as low as they are now, but very low from a historical standpoint.

They did stay low and they are still low by historical standards.

You're really reaching here. None of the above (including the one article you found from 2020 - when I asked for 2021 - from a local publication across the country, in which it clearly conveys that interest rates will remain low for "years") suggests buyers should have reasonably been able to predict the largest and most rapid increase in interest rates since the early 1980s.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Lower you expectations or make more, maybe get married

No one wants to marry me I’m 50.

1. This is a blessing, OP. It means you won't lock all your money into a house, which is never good at your age.

2. Go to a lower cost of living area around here, where you can still have a decent commute, since you don't need to worry about schools. There are plenty of safe but affordable areas.

3. Bonus: I'm sure you'll find a lovely community, and perhaps a life partner, while doing that. Best of luck!

I do need to worry about schools. I have two kids.

PP you replied to. Then you need to balance schools and commute. I have friends who are happy with Rockville area schools.

My point is that at 50, you should know that YOU are responsible for your own happiness. Instead of looking at the glass half empty, it's half full. The worst that can happen is that you live your only life in a state of misery! Please don't do that to yourself.

[Anonymous]

The modal interest rate historically is around 7% so no, we are not still at historic lows whatsoever.

[Anonymous]

If you hesitated to buy before, it means you weren't quite wealthy enough. You would have been house-poor and of course, being who you are, we'd have read all about it in one of your whiny posts.

So... be happy with what you have, and consider that most people in this area cannot afford what you can afford. DCUM is a rarified sphere indeed.

[Anonymous]

Anonymous wrote:The modal interest rate historically is around 7% so no, we are not still at historic lows whatsoever.

It’s low compared to the teens it has been in the past. Buy now before it gets up there again!