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Old 07-24-2018, 04:25 PM
 
Location: Westwood, MA
5,037 posts, read 6,923,971 times
Reputation: 5961

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Quote:
Originally Posted by bugelrex View Post
It would be great if a few real estate agents could chime in and lets us know what kind of buyers of single family homes they see. Helps us guage the bubble
In my limited experience people buying in the $900k-$1.5m range probably have high dual incomes and may have built up equity in an earlier home. Really low interest rates probably don't hurt.

Edit: not a RE agent, but know people buying in this price range.
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Old 07-24-2018, 04:49 PM
 
880 posts, read 819,497 times
Reputation: 907
Quote:
Originally Posted by jayrandom View Post
In my limited experience people buying in the $900k-$1.5m range probably have high dual incomes and may have built up equity in an earlier home. Really low interest rates probably don't hurt.

Edit: not a RE agent, but know people buying in this price range.

Once we see buyers who have to:
- pool income from 2 families to buy a single home (ie 2 families cramming into a single house)
- interest only loans
- high percentage of ARM loans or most loans needing less than 10% down


any these sign then yes, proceed with '***extreme***' caution. If you think the market is Crazy now then you haven't really seen 'crazy'.
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Old 07-24-2018, 05:49 PM
 
13 posts, read 8,494 times
Reputation: 13
Another family is selling out of newton. I went to pick up a few things from Craigslist today in newton - family moving out of $1.6 mil house - cashing out. I asked where are you moving or buying? They said they are not planning to buy anything, rent for awhile/enjoy life. They did comment on high re prices in the area. Another data point for newton for what it's worth.
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Old 07-25-2018, 06:41 AM
 
24,559 posts, read 18,259,472 times
Reputation: 40260
Quote:
Originally Posted by bugelrex View Post
If both spouses are working then 300k a year and 3x income = 900k house

Programmer, dr, biotech, even pharmacists can clear close to 150k base with 8 years experience.

Not at historical 6.25% interest rates. The median home price in a top-20 town also isn't $900K.
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Old 07-25-2018, 08:29 AM
 
15,799 posts, read 20,504,199 times
Reputation: 20974
Quote:
Originally Posted by catchit111 View Post
Another family is selling out of newton. I went to pick up a few things from Craigslist today in newton - family moving out of $1.6 mil house - cashing out. I asked where are you moving or buying? They said they are not planning to buy anything, rent for awhile/enjoy life. They did comment on high re prices in the area. Another data point for newton for what it's worth.

My new neighbors just cashed out of Lynnfield. Sold their paid off house for 1.2 Million, paid $600K cash for their "downsized" house, and are using the proceeds to pay for their 3 kids college tuition. Not a bad plan if I say so myself.
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Old 07-25-2018, 09:18 AM
 
3,808 posts, read 3,139,335 times
Reputation: 3333
Quote:
Originally Posted by BostonMike7 View Post
My new neighbors just cashed out of Lynnfield. Sold their paid off house for 1.2 Million, paid $600K cash for their "downsized" house, and are using the proceeds to pay for their 3 kids college tuition. Not a bad plan if I say so myself.
Likewise. My neighbor is cashing out of his $650K home, moving into one of his existing rental properties, diverting some of the cash towards his daughter's college tuition, and keeping the rest in a fairly liquid investment tool. Common theme with all the recent sales in my social sphere is it's never a 'buy up' scenario - goal is always to clear debts and/or free up cash/cash flow.
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Old 07-25-2018, 12:53 PM
 
7,925 posts, read 7,814,489 times
Reputation: 4152
Quote:
Originally Posted by bugelrex View Post
Once we see buyers who have to:
- pool income from 2 families to buy a single home (ie 2 families cramming into a single house)
- interest only loans
- high percentage of ARM loans or most loans needing less than 10% down


any these sign then yes, proceed with '***extreme***' caution. If you think the market is Crazy now then you haven't really seen 'crazy'.
Remember NINJA's?

No
Income
No
Job
Anyway
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Old 07-25-2018, 01:09 PM
 
15,799 posts, read 20,504,199 times
Reputation: 20974
Isn't correct average down payment something shockingly low like 2-3%. I thought I remember seeing info on this. Someone have factual data for Massachusetts?
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Old 07-25-2018, 01:12 PM
 
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
41,936 posts, read 36,962,945 times
Reputation: 40635
Quote:
Originally Posted by BostonMike7 View Post
Isn't correct average down payment something shockingly low like 2-3%. I thought I remember seeing info on this. Someone have factual data for Massachusetts?




I haven't known anyone to buy with less than 20% in the past 10 years in the Boston market. So many people have that or more I can' see why a seller would want to deal with accepting an offer with less.
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Old 07-25-2018, 01:25 PM
 
5,016 posts, read 3,920,304 times
Reputation: 4528
Quote:
Originally Posted by timberline742 View Post
I haven't known anyone to buy with less than 20% in the past 10 years in the Boston market. So many people have that or more I can' see why a seller would want to deal with accepting an offer with less.
That's only true in areas susceptible to bidding wars. There are still plenty of sub-markets around here where sellers don't have the luxury to hand select offers with larger down payments. Other than initial risk of a deal falling through, what's the downside for a seller to accept a 5% or 10% down payment offer?

I think 5%, 7.5%, 10% offers are far more common than you give them credit for. Mortgage insurance is a big business around here.
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