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Yes, it’s a terrible time to buy. If you have a house full of equity and are essentially “trading” houses with someone else - go for it. But you’d be a fool to be a first time home buyer right now
Your all in housing costs after a 20% down payment would be somewhere on the other of 80k per year, and you would accrue anemic equity of the next 5 years. Even in the nice parts of Atlanta it’s not worth that
In general, buy a house and stay put. Don't buy a house if you don't plan to live in that house for >5 years. It's impossible to time the market in real estate as a primary residence. You'll regret NOT doing so in a couple years. You're going to get less house now than you would have a couple years ago because of the high interest rates, but you can refinance at a later date.
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We were in the same boat in SoCal and went the rent a house route. It is SO much cheaper (4.4k rent vs 12k+ mortgage in our current neighborhood). I'm regularly sad we don't own / aren't building equity, but with the market this lopsided it doesn't make any sense.
Put 7600 per month into stocks and you’ll come out way ahead. And no fixing toilets.
I've come to terms that I probably am going to delay my home purchase until probably 2025
Subject Expert
This decision is highly dependent on the market and your financial situation. But based on what you have described, renting seems like the smarter choice. I don’t think it’s worth getting FOMO around “owning” if you’re investing the difference anyways and seeing your wealth grow.
Unless there’s a big shock to economy and everything crashes… there’s no way prices are coming down considerably. May be a 5-10% correction that ain’t much. I personally need home prices to crash so we could buy our primary home. Seems a wishful thinking. 🧐
I think now is a good time to buy but its also a market by market situation. Not every market is seeing things cool off as quickly as the nation overall.
My opinion is with rates so high, the crazy jumps in prices in most parts of the country are cooling off and you can even get some houses a little under asking. (Just did in MD)
Rates may be high now but when they go back down you’re going to see demand spike again with little solution to the supply problem causing prices to spike again.
My thought is to buy now at a high rate and lock in a house at prices now, and when rates go back down you can refinance to a lower payment and enjoy the spike in your home equity as buyers flood the market again.
Marry the house but date the rate! Just my opinion.
In most areas you’ll be getting a home at a lower price now vs a year or two from now. So, if you buy now you’re getting a deal on the price while you wait for rates to go down and the flurry of pent-up buyer demand will unleash when rates cycle lower again. It 100% depends on what scenario will create a happy life for you and your family. What I’d do is get preapproved, figure out your budget, and look for a house. If there isn’t one you would LOVE to live in for the next 3 years then continue to rent. This way you use data to make your decision and can feel good about it.
Regardless of how the market is, seems like OP has great HHI and NW so the hold up is probably more subjective than objective. It’s possible that housing prices will continue to go up - you can always refi when the rates go down. I would buy now if I were you - I’m also in NoVA but with less HHI and NW so going to wait 🙃
Today is the cheapest houses will ever be
The only reason they are this cheap is because inflation has cause the fed to hike rates which has caused interest rates to go up and has slowed the rise of home values
Note that I am not expecting a major crush. Just a possible drop in the prices which may or may not happen.
There is no inventory and extreme demand
What would cause prices to go down?
Community Builder
If you wait prices are likely to go up. Imo you buy now and try to deal with the higher rates for a year until rates go down. Also, if buying an existing house then maybe there’s some leverage to have seller pay some concessions that could help with rate such as a 2/1 or 3/2/1 buydown.
Also, sent you a pm if you want to look at rates as I am a lender.
WTH today's market I would not risk it at a time like this unless it is absolutely necessary.
Would disagree. Home prices in good areas don’t decline even in bad economies and even in general the summer’s home pricing declines have turned positive again per WSJ:
“Home prices aren’t falling anymore. After declining on a year-over-year basis for five consecutive months—the longest run of declines in 11 years—U.S. home prices rose in July.”
https://www.wsj.com/economy/housing/the-fall-in-home-prices-may-already-be-over-3496d6bb?ns=prod/accounts-wsj
I would instead go for a lower price house that matches your needs than wants. It sounds like you want to go for a house that has all of your wants. So instead maybe go for a home mortgage that is much lower so you will have a home to trade in when the rates go down. For example, buying a townhome or older house that needs some renovations since it is just out dated.
This may be a better way to have equity in a home rather than renting as you wait to see how the market plays out in the next 2 to 3 years.
Completely agreed. Since you can’t time the market and prices continues to go up in good neighborhoods, I think people will regret NOT buying. The main thing is to find something you can afford at the current interest rates, knowing it’ll become event more affordable once interest rates drop again when you refinance.