Home Prices Thoughtd ?

[whizkidkyus]

Well , I know this is probably going to get an arguement started,but keep it clean so that it dosen't get poofed , please ! I'm in the market to buy a house now and I'm hearing so much about the house market / economy crashing or the economy going into a recession . My question is what do you guys think about the housing market now ? Or the economy ? Should I wait a few months like a guy at work is gonna do and buy next year ? Buy now ? Any thoughts / ideas ? I'm not looking for a mansion , just about a 1200 to 2000 square feet house with a decent garage thati can work in and about a 1 acre yard about $80000. or less . I'm hoping that it will come down soon as they say everthing must come down or every thing that goes up must come down sooner or later ! Thanks for any and all advice .

Whizkid

 

[paul]

Look over your situation and do what your finances and heart wants to do.

Waiting is for the birds.

If you were a businessperson and in real Estate and wanted to make a living buying and selling then a totally different thing.

But if you are looking for a house to make a home, look at your situation and go from there.

I think housing might get cheaper as interest rates get higher, but you see that ends up being no different then to you, the monthly payment is the same you are just paying less principle and more interest. Waiting wouldnt save you anything.

If we have a more serious crash in housing costs that it makes a difference, then likely so many other things will be out of whack that you just wont find financing very easy to get any more and then again, there you sit, needing to wait......

So, if you have a secure income and some savings and can get good credit and find a house you like, why wait. Have your ducks in a row and understand we might get into tough times so have your loan set up right to protect you from spiking it reset rates or a bad job outlook, and go enjoy life.

If your finances are hanging by a thread as it is, well then Im not sure what to tell you........

Paul

 

[whizkidkyus]

I have a credit score of 800 plus and $5000. to $10000. to pay down and a good $20.00 an hour job that i have been at for over 5 years now ! I'm only looking to spend $80000. max as I want something that i can pay for in 30 years or less and as of now it's only me ! I've joined a website that lists forclosed homes all over the US. I'm also keeping an eye on all the surrounding counties Master Comissioners office websites for any up coming fore closure sales as well as Zillow and Realtor dot com . as well as facebook and facebook market place . I'm even following a few realtors ad offices on there . I'm also keeping an eye on local store bullentin boards and friends help as well as word of mouth . Problem is that I'm seeing a lot of for sale signs here and there but most is over priced as in $100000.for a house that's only really worth $80000. As I told someone the other day - anything affordable isn't decent and anything decent isn't affordable . If I hear of anything by the time it gets to me it's done sold or / pending etc. Or I'm not the first caller etc.. I'm thinking of waiting until next spring at least and getting a few bills and a few big bills paid off and some money saved up. Plus, I really don't want to move in cold weather like I did't like moving in the hot weather of this past summer . I'm in south central Kentucky if it matters any !

Whizkid

 

[ss55]

Interest rates and real estate prices move in opposite directions. It can take six months for inflated home prices to catch up with reality.

I'm guessing that you are looking at older homes in a rural area or a very small isolated town out of commuting distance to a growing town, as $80K for a modern house that size on an acre lot sounds very low. That would be more like a late 1980s price in most growing Midwest towns. Prices in already depressed areas may not drop much more.

Similar to vehicles and tractors, updating an old house will usually cost more than buying one that already has the updates that you want.

Good luck.

 

[Traditional Farmer]

Depends on the area I guess 80 thousand won't get you a lot to build a house on in my Hood,house with a few acres on my West side just went up for sale 1.80 million.On the down side for you also with an economic down turn houses like you are looking for is what sells good.

 

[Vito]

Interest rates are going to up again shortly. If you can find what you want buy now. If rates come down later you can refinance at that time.

Vito

 

[Bruce from Can.]

The only way a person with a modest income can ever expect to own a home, is by being fiscally responsible. What does that mean? It means doing a lot more than just paying the minimum on your credit card. To me it means starting early in life, and learning not to spend any money you dont need to spend. If you are in a couple situation, live off one persons income and save the other. Get side gigs, making extra dollars to be able to afford the extra indulgences in life. Make a disciplined financial savings plan, and stick to it.
On the surface, none of what I have said sounds like any fun, but the fun begins once your plan starts to work.
The numbers are bigger now, but the ability to buy a home hasnt changed over time. Doesnt matter if you were earning $2.00 per hour and a house cost $100,000.00 or if you earn $20.00 per hour a a house cost one million, the principal is the same.
I tried to get one of my boys to buy a house lot, that cost $50,000.00 , when he was 22, earning 50 Grand per year, and living home with me for free. But no way, he wanted to go have fun, and blew everything he earned as quickly as he made it. Now he is 32, lives in a rented home with his wife and two kids, and they struggle to meet their bills and will never own a home unless they inherit one.

 

[Stroby]

Well said, very well said. Great advice that works.

 

[Sprint 6]

I think you're going to have to raise your budget. My area is considered pretty cheap housing, but $80K wouldn't buy what you're after, even in my area. $80K would buy a livable 800 sq.ft. on a postage stamp lot in my little town. If you happened upon what you describe for $80K, it's going to be a gutted shell that needs everything, top to bottom. Even in my area, what you are describing is going to be over $150K, and require major renovations. We paid $80K for our house 21 years ago, and it's probably worth almost $200K at this point.

I feel bad for anyone starting out now. Inflation is killing the American dream. The total number of dollars in circulation has almost doubled in the last 2 years. More supply equals more demand equals high prices. There is a reckoning coming, always is. Saving money in a bank is pointless, also. Personally, I'd invest your money and wait.

 

[sms]

I agree with Bruce, start early, easier to pay a mortgage when in your prime working years. I advised our kids in the same manor and they started small, built equity, then traded up as space was needed.

 

[sms]

Also renting gets you nothing. Paying a mortgage gains equity, nnalert over time.

 

[RobCons]

Some excellant advice on money management has been given. Lots of members on here, my wife and I included, have followed it and life turned out good. If you can afford the move go ahead with your plans. I think prices are likely to come down but interest rates are going up. I dont know where your located but 80k around me doesnt buy much ujless it needs lots of repairs or it comes with a bullet proof vest.

 

[1206SWMO]

The largest real estate firm in my area currently has 12 homes priced under 100K each..Most are 2 bedroom and one bath..Several need a little work...One is actually on 1.5 acres....I really doubt that price will come down much on these as they sell so fast.

 

[brooktre]

Every situation is different, but I would say wait and keep looking through the winter. Winter is traditionally the slow period for real estate. Prices are coming down slowly because sellers want the high price that people were paying a few months ago. The reality is that those high prices are gone until the market corrects and finds the bottom. Then prices will rise again. Nobody knows when the old prices will return.

As you are looking you should get prequalified for a mortgage. Usually banks will lock you in for the current rate and that will be good for a period of time (30 days - 60 days depending on the bank). That way you know more about what is affordable and how much you can spend. If the lock in period passes without you finding a home you can re-apply. Unfortunately the next time could be at a higher rate but again nobody knows.

As you look, pay off your debt. Bruce gave a good example of people living with debt (my son is the same or worse). You should only have debt for large purchases like a house or education. If you need a reliable car buy only what you can afford and if you finance pay it off as fast as you can.

For a mortgage, I would get a 30 year loan and plan to pay off in 15 years or less. Make the extra payment every month unless you get an unexpected bill like a new heating system. Do NOT be tempted to skip the extra payment for something nice that you would like to have - only for something you need.

 

[showcrop]

Right now is a great time to be shopping for value in the housing market. To get what you are looking for will be extremely difficult. Lending institutions don't like to loan on fixer-uppers, which is all that you can afford, So you will have to set your sights very low. As others have advised, and what I did, is to start with something small, fix-up, and add on, then sell and move up. An extremely important factor in being order to sell higher is to own in a desirable area. Look to buy a place that is an eyesore in a good community and then bring it up to the level of the others. The current economy will bring foreclosures and dropping prices. Keep looking and going back to places that were too high for you because they will be dropping in price.

 

[MarkB_MI]

Here is the deal: It is NEVER the 'right' time to buy a house. The market goes up, the market goes down. Interest rates go up, interest rates go down. If you think it makes sense to own rather than buy, start looking. Just be sure you can swing the payments for the next year or two. If you can hold on to the property for at least a couple of years, you'll probably be able to refinance at a better rate, or your income will have risen enough that the payments won't break you.

 

[Steve in IL]

Location does matter A lot! And you say south central KY with my limited knowledge of your area, Id predict there is a huge difference between locations given the influence of Bowling Green and even Nashville. There also look to be a few nice lakes around your area that can impact prices But remember, unless you are going to hold onto this property forever (which is rare), an investment up front in a better location, can pay off well in eventual resale value. Good luck!

 

[EFV]

You're single with steady employment that lets you build a nest egg ? Only good advice nobody has offered is
to increase income to have a bigger down payment fund. Side hustles,second job part time job, whatever you can do
to have more money available. The more prepared you are for opportunity to knock the more likely it'll pick
your door.Good luck

 

[Geo-TH,In]

Mark
I saw the housing bubble coming.
I made money in REITs, Real Estate Investment Trusts.
The Fed predicted the housing crash when people were paying over market prices. The Fed posted an article about record foreclosures in Florida. Everyone here said it wasn't happening.
I got out of REITs.

According to the news, a $300,000 loan once cost $1300 a month. After the Fed increased rates it's now $2000 payment. There may be cheaper rates.
Fed is predicted to raise rates again this week.

Don't forget the price of lumber went through the ceiling.
The price of copper wire is insane.

I refuse to build anything.

I built this house 30 ago around an old house.

I've owned this house for 45 years now..
I put 25,000 brick on this house and doubled the size

It took me 5 years to completely remodel.
Never again. This is my forever house. I built it the way I wanted it. I used plywood not particle board.
I'll never sell this house and I'll most likely not buy another house in FLORIDA. I'm not that rich..lol

 

[jm.]

That time wait might let you almost double your down payment or buy something a little higher. If one could predict this housing market he probably could get rich, as others have said as interest rates rise usually the home market declines so we will just have to wait and see. My area 80 thousand is going to next to nothing , maybe a small lot with a mobile home.

 

[John T]

Over many years I bought and sold several pieces of real estate IN GOOD TIMES, IN BAD TIMES, IN HIGH OR LOWER INTEREST TIMES, AND MADE GOOD MONEY EACH TIME..... I never lost in real estate regardless.

If youre in need and can swing it and PLAN TO KEEP IT AT LEAST A FEW YEARS MY opinion is go for it regardless what anyone here including me has to say, its YOUR money YOUR choice none of ours. Thats NOT to say if a mortgage is required its obviously better if rates are lower WELL DUH

Its my opinion real estate OVER THE LONG RUN will make you money, although if youre in the SHORT RUN in that case you could loose

Got a crystal ball anyone lol Hey theres as much collective wisdom and common sense here on YT as elsewhere perhaps, so do your research and make a wise informed decision

GOOD LUCK in your choice

John T

 

[rrlund]

They dug my son and daughter in law's basement a week ago. The power company is down there right now to start stringing lines. Lumber prices have finally come down.

Now I'll tell you this much. I was at the lumber yard a week ago Friday to get some lumber for a feed bunk. My son's best friend is yard manager. I talked to him after I loaded. He told me they had more more business this year than at any time in their history, and they've been there since 1965. He said it not over the counter sales so mush as contractor orders. They've taken people from the counter and put them in the yard and still can't keep up.

There's always going to be pessimists who'll tell you it's never the right time to do anything, but I remember what an uncle said back in the 60s when my dad was saying that ''Things can't keep going on like this''. Claude just said ''It's as good a time to borrow money as any.''. He wasn't hurting for money when he passed away.

 

[dhermesc]

Depends on where you are. Market prices have just started to come down - but some sellers still think its last spring when your asking price was the base price and people bid against each other from there. I just picked up a little house in a little town - still think I paid too much but there was a definite decline in prices in even the last month. But mortgages are now in the 7% range, huge difference from my just paid off mortgage that was just 3%.

The biggest issue is building is almost out of the question. Materials are off the chart. 4 years ago I built a little 30X40 pole shed to stack hay in. As always I built it too small. To make a 15x40 lean to on that building is going to cost me about the same as the original 30X40 shed. That's half the poles (and shorter) no trusses - just 2X6 rafters for the span. I used galvanized roofing originally and I can't even find it now - I priced it with white roofing because that is the next cheapest.

 

[Bruce from Can.]

And you cant sit around waiting for the time to do something to be right, for 2 reasons. 1 You have to go out and live, and work while you are young and strong. 2 If you wait for some mythical perfect time to act, you will never get anything accomplished. Because nothing is ever perfect.

 

[miangus]

Go for it. I built my home in 1974 on 60-day notes. On completion converted to 5-year balloon mortgage at 15% with a variable rate. After 10 years I refinanced to buy out my first wife's equity. Another high-rate balloon, finally refinanced in the early 90s with a fixed rate at 8%. If we continue with this inflation, you will be paying your mortgage off with money which is worth less than current dollars. It may hurt for a few years but that's life.

 

[NY 986]

Buying to get started in life or enjoy a dream home before you get old? Then find that home now. Buying as an investment? I expect homes to trend down over time. The things that contributed to rising values in a community such as Baby Boomers who caught the economy at the perfect time are going away. Interest rates that we saw for the last fifteen years were historically low and are going away. Extended terms such as 35 or even 40 year mortgages I'm thinking will be done away with as banks will be keen to increasing risk.

 

[Blackhole49]

Things must be way different in Kentucky than where I'm at in SE MI. A livable 1,200 sqft on 1 acre will be double your 80g. I wish you luck. You don't explain your current living situation, but, unless it's free, I wouldn't wait.

 

[DoubleO7]

(reply to post at 01:59:52 10/31/22)

Have you ever bought a foreclosure home?
It is not like on tv.

The really good ones are sold to the friends of the lender.

That leaves the ones that should be demolished.

When a foreclosure sale does show up for sale to anybody does happen, the seller can take months to decide if your bid is excepted. Bidding on a foreclosure may have a $$ penalty to you if your bid is ever accepted and you turn it down.

So you bid on one and wait, missing out on others that might be 100 times a better fit for you.

 

[dr sportster]

Look into a mortgage called a COFI It adds an extra payment and pays down a 30 year in 22 years . I did very well with a COFI type.

 

[BarnyardEngineering]

(quoted from post at 03:30:34 10/31/22) The only way a person with a modest income can ever expect to own a home, is by being fiscally responsible. What does that mean? It means doing a lot more than just paying the minimum on your credit card. To me it means starting early in life, and learning not to spend any money you dont need to spend. If you are in a couple situation, live off one persons income and save the other. Get side gigs, making extra dollars to be able to afford the extra indulgences in life. Make a disciplined financial savings plan, and stick to it.
On the surface, none of what I have said sounds like any fun, but the fun begins once your plan starts to work.
The numbers are bigger now, but the ability to buy a home hasnt changed over time. Doesnt matter if you were earning $2.00 per hour and a house cost $100,000.00 or if you earn $20.00 per hour a a house cost one million, the principal is the same.

This advice no longer works no matter how much you stomp your feet and hold your breath.

Housing prices have risen exponentially.

Wages have risen linearly.

I don't know in what world anyone could afford a $100,000 house on $2/hr but to stick with your example, it's more like people are earning $8.00 an hour and houses cost one million.

 

[BarnyardEngineering]

(quoted from post at 05:26:41 10/31/22)According to the news, a $300,000 loan once cost $1300 a month. After the Fed increased rates it's now $2000 payment.

That, as usual, is only HALF the story.

If you're making payments the taxes and insurance dollars have to be held in escrow. Depending on where you live that adds 50-100% to the monthly payment. Pretty sure it's Federal law.

My monthly mortgage payment is around $750 a month. The monthly statement from the mortgage company is pushing $1300, and probably will top $1300 when they do the annual escrow reassessment tomorrow. Insurance rates and tax rates went up.

 

[rrlund]

I don't know why anybody would ever ask for advice on such matters from the pessimistic old shut-ins on this forum anyway, unless he's already made up his mind not to do it and is just looking for validation.

 

[bmack95hd]

We are having a house built, stem wall getting poured tomorrow. You dont want to know what building one costs.

 

[Stuart]

That mindset is why farmers went under in the 1980s and people lost their house in the 2000s.If you can afford to borrow money and build a house in this economy, your not hurting for money at all. I waited a few years to buy my second house and got a really low rate. It was the best decision I ever made. The housing market will come down in the next year or so, interest rates not so much. I would wait at least a year to buy.

 

[jdr1943]

Our first home three bedroom single carport basement 1300sq.ft.one acre land turn key $16,300 borrowed $13,800 payments $124.05 fifteen year first of Nov.1964.

 

[DoubleO7]

(quoted from post at 15:23:20 10/31/22) Our first home three bedroom single carport basement 1300sq.ft.one acre land turn key $16,300 borrowed $13,800 payments $124.05 fifteen year first of Nov.1964.

And minimum wage was $1.15/hr

Would you pay $156,000 today for exactly what you bought in 1964?

 

[old]

My thinking is they build those backwards. You should have a concrete wall then the foam in the middle and another concrete wall. My dad talked about a house one of his relatives had in MN. It was rock and concrete and then 12 inches of sawdust then around rock/concrete wall. He told me someone told them it would be hard to heat and cool but it wasn't.

 

[E.B. Haymakin']

I would wait..the more rates get hiked sales should slow, and prices should come down. Don't know if building materials will fall (don't think so) even if housing falls off a cliff. Cost of production is through the roof. I firmly believe the real estate bubbles prove that our political class use the banking system to "subsidize" the economy. And through the fdic tax payers are actually the ones at risk in default. If you think there's any risk of default buy something you won't get attached to. I don't see how anybody will live long enough to pay off a mortgage. In the 2007/08 debacle the average price of a house around me was 200-250,000. Now there $400,000. Ponzi scheme, pure and simple

 

[Dave BN]

When you find the right house you will know it. Same with vehicles and other big ticket items. It will just feel right when you see it.
Adding a few dollars extra to your payment each month helps to pay it off or add equity much faster. Your loan officer or financial advisor can show you that. If your monthly payment is 879 dollars for example just set your mind to the fact that the monthly payment is 900 dollars and pay that much each month.
Good luck.
Dave

 

[bmack95hd]

New technology Rich. R22 insulated and 3hr. fire rated. Stay tuned forms being poured with concrete tomorrow. Certainly other ways to do it old, no pun intended and new. Will report back with progress.

 

[old]

I know able the foam and concrete like you have and have seen more the one house built with it. Habitat for Humanity uses that stuff all the time. But to me the insulation should be between the concrete walls not on the out side of them

 

[mptaszynski]

Is that the Ute Mountain in the background? If so, you must be almost to Cahone. I think you live out past me somehwere. My wife is the Principal at Lewis Arriola and Pleasantview schools.

 

[bmack95hd]

Does that look more familiar, Sleeping Ute. The other post showed the Blue Mtn. near Monticello. I am in Cahone corner of M.9 and CR16.

 

[Johnhof]

Start your shopping right now. Time you find your house and get it closed months will have passed and so will the peak in interest rates. When people realize they missed the bottom panic sets in, always works that way. you might as well be ahead of that crowd.

 

[bmack95hd]

Jumped over to Tales if you want to communicate. I think email is open.

 

[bmack95hd]

Go to Tales and see my post.

 

[RedMF40]

On the regular real estate market, using an agent, that kind of deal is going to be hard to find. There are still some opportunities but it may mean hitting the pavement and looking for a distressed property, vacant, obviously in need of attention. Get in touch with the owner directly if possible and see if you can make a deal. You'll have your work cut out for you with a place like that and you'll get to know the meaning of "sweat equity." But you could end up with a really nice place you can call your own. Good luck with your search. Gerrit

 

[brooktre]

Go slow and look for value. The last time there was a real estate bubble it took about 15 years for prices to recover.

 

[Texasmark]

Keep on looking.....you will be at it probably the rest of your life.