Anonymous wrote:

Anonymous wrote:With rates over 7% it seems impossible for prices to increase over next few years. Much more likely for prices to drop.

Have to agree. I put a house on the market last Thursday and so far the highest bidder is only $55,000 above list price. Deadline is 6 pm tonight so we will see. Earlier this year a similar house sold for $75,009 above lust so that is a solid $20K price drop.

Were they listed at the same price? The amount over (or under) ask really means nothing when we don't know the starting point.

Anonymous wrote:

Anonymous wrote:If you need a mortgage, I’d say this is the worst time to buy in over 21 years.

Interest rates on home mortgages are at the highest level they have been in over 21 years. Check the news headlines.

I would never buy in this market.

"over 21 years" such a dimwit

You're the dimwit. Your high is 1980 which was 43 years ago!

Anonymous wrote:I only buy high. Bought in 2006 and 2014 and looking now. I already had a place when prices went down and it wasn’t my time to buy. My needs and cycle of life only coincides with high times.

This person is dumb. This also does not answer your question.

Anonymous wrote:Weird thing happening in my neck of the woods in Kensington: two houses that would’ve easily sold for over $900K 6-12 months ago just came on the market for $700-$750K. Maybe they’re just hoping to start a bidding war? Anyway, of course two houses don’t a trend make, but I wonder if there’s a change happening.

The house on Orleans at $719K has 2 bedrooms and needs a complete renovation per the listing

The house on Orleans in White Flint Park at $750,000 also is dated. The one under contract on Orleans in the $700K range also needed work. The two sales in White Flint Park this year were at $780K and was in good shape. The one that sold for $825K was renovated.

Not exactly apples to apples.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:With rates over 7% it seems impossible for prices to increase over next few years. Much more likely for prices to drop.

Have to agree. I put a house on the market last Thursday and so far the highest bidder is only $55,000 above list price. Deadline is 6 pm tonight so we will see. Earlier this year a similar house sold for $75,009 above lust so that is a solid $20K price drop.

No it's not a "price drop", it's you pricing the home incorrectly to start with. I mean "only $55K over ask"? The horror!

Priced it based on the last three comps sold in March, July, and August. And with the last offer we got at 5:45 pm, it will go $63K over ask for the August comp.

Anonymous wrote:

Anonymous wrote:With rates over 7% it seems impossible for prices to increase over next few years. Much more likely for prices to drop.

Have to agree. I put a house on the market last Thursday and so far the highest bidder is only $55,000 above list price. Deadline is 6 pm tonight so we will see. Earlier this year a similar house sold for $75,009 above lust so that is a solid $20K price drop.

No it's not a "price drop", it's you pricing the home incorrectly to start with. I mean "only $55K over ask"? The horror!

Weird thing happening in my neck of the woods in Kensington: two houses that would’ve easily sold for over $900K 6-12 months ago just came on the market for $700-$750K. Maybe they’re just hoping to start a bidding war? Anyway, of course two houses don’t a trend make, but I wonder if there’s a change happening.

Anonymous wrote:With rates over 7% it seems impossible for prices to increase over next few years. Much more likely for prices to drop.

Have to agree. I put a house on the market last Thursday and so far the highest bidder is only $55,000 above list price. Deadline is 6 pm tonight so we will see. Earlier this year a similar house sold for $75,009 above lust so that is a solid $20K price drop.

If you can afford the payment at that rate, it makes sense to buy. If rates go down i) the market could be flooded with buyers, making the prices even worse and ii) you could refi. There's a risk that the market would be flooded with properties and prices would go down, but in the areas we were looking in prices have been stable - even after the 2008 recession. So the prices seem unlikely to drop dramatically. There's just so much demand for upper NW etc.

If you're looking in the exurbs, that's a different analysis.

With rates over 7% it seems impossible for prices to increase over next few years. Much more likely for prices to drop.

Anonymous wrote:OP, people have been hoping that prices would go down for the last 3 years, and they haven't. There is a chance that there could be a slight price correction in the near future, but it is unlikely that home prices will go back down to pre-pandemic levels ever again. It's up to you whether you want to buy know or wait. Just know that if you wait, you risk homes getting more expensive as well.

+1 Also, where you’re buying matters a lot. Certain places are largely immune to the market tanking.

OP, people have been hoping that prices would go down for the last 3 years, and they haven't. There is a chance that there could be a slight price correction in the near future, but it is unlikely that home prices will go back down to pre-pandemic levels ever again. It's up to you whether you want to buy know or wait. Just know that if you wait, you risk homes getting more expensive as well.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would wait. Rates and prices are at an all time high.

Except when they were 17 percent

Home prices were dirt cheap when rates were 17%

You could easily argue the combination of mortgage rates and home prices today makes cost of new purchase ownership an all time high

I was responding to a statement that "interest rates are at an all time high" not that it is good time to buy. I suppose home prices were also "dirt cheap" in 1919, 1931, 1944, 1969, and all the years before you bought a house.

Affordability is truly terrible right now when judged historically. If not for low unemployment we’d be seeing some significant real price decreases. Rates at 7% is a big deal given prices.

Terrible time to buy. For all the reasons stated above.

Do NOT buy a house anytime soon.