Reply to When do you think housing prices will drop (or never)?

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[quote=Anonymous][quote=Anonymous]We bought a 1.3mil house in close in McLean in early 2019, we refinanced at 2.75 and our mortgage is $5400. Per Redfin our home is now worth 1.6mil, I am not convinced at the appreciation. I think it will go down at least 100k.

Today, If someone were to buy 1.3 mil house at 6.4% at 25% down the payment comes to around $7500.00 and at 1.6m monthly payment is around $9200. I am not convinced that there are lots of people out there with the capacity to pay between 7500 -9500 a month in mortgage payment. I think this pool is limited and will shrink further due to rising interest rates.

FWIW, our HHI is 750k and I would never pay mortgage above $6000/month. Maybe I am an outlier but numbers don’t support the argument that prices will hold, I think they will come down 10% at least even in close in areas and that’s okay because the increase was beyond crazy.[/quote]

I agree. We’re in that position now. HHI of about $400 and can’t imagine paying more than $6,000 a month. Three years ago that would have bought us something nice but now we’re looking at $9,000 a month for something that needs a lot of work or is in a less desirable location.  I can’t imagine spending  $9000 at all, and certainly not on something I’m unhappy with. [/quote]

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