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Like I said, that is pulling in demand from a future time period. It is not a change in demand; it is a temporal shift from a future time period to an earlier one.
Yes it would be …but things have a way working out with the future demand when you get there ….we have not had a roll back in our area since a small 10% correction in 2000 and 2008 .then they go higher and higher .
Yes, invest house money in the stock market -- what could go wrong? Oh boy...
Not all of it, I would divide it between stocks, bonds, and cash investments like CDs. The idea is to keep what I need to by another house in cash and invest the rest. I was thinking 70/30, but I changed that to 50/50 because all the houses I like size wise where I’m moving need a lot of work.
Anyway, I’ve been investing in stocks for 35 years now. There are downs, sometimes even for a long time. But if you are diversified (mutual funds or my favorite, index funds) and you invest for the long term, it always goes up.. The key is to invest long term (no less than 5-7 years) and invest in a broad range of stocks. I don’t day trade, invest in individual stocks, or invest short term.
I guess I don’t put too much faith into a house being a great investment. A house is the only thing I’ve ever lost money on. That’s because I was forced to sell a house by my now ex husband right after the housing market crash in 2008. It was upside down and I asked him to sign a quit claim (I had a new mortgage in my name all lined up), but he thought we’d make money on the sale and forced the issue. He forgot about closing costs and we owed money on it. Money I paid and he didn’t.
As someone who plans to sell my house in spring of 2022, I’ve been paying attention to anything that might impact the housing market. Yesterday, it was announced that the Fed is going to raise interest rates three times in 2022. I have no idea when or by how much, I haven’t been able to find that information yet if it’s even been released. The best detail I can find is that they plan to raise at the first time in spring. But no date was given.
What do you think that this will mean for real estate in 2022? Will it heat things up more as people try to buy before the rates go up even more? Or will it slow things down?
It's "expected" the Fed will start raising interest rate in May'22 and it's "anticipated" the rate increase will be 0.25%, then every 3 months when they meet they will raise another 0.25% each time.
As a general rule of thumb (you can verify this with online mortgage calculator), a 1% rate increase generally will lower the house prices by 10%.
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My concern at the moment is I plan to sell my house in spring 2022. I was contemplating if I should sell my house a month or two early, and basically live in an extended stay hotel until my daughter finishes her senior year of high school. You know, one of those places that has two separate bedrooms and then a common living room/small kitchen/ and dining room area between the two rooms. But that can get very expensive. I calculated that my monthly housing costs when I include my mortgage, HOA fees, and utilities, (but not maintenance) runs me about $2600 a month. Staying in an extended stay hotel will cost $4500 a month.
I was also wondering if requesting rent back is reasonable in this market.
Anyway, I’m curious as to what you all might think about this. Thanks!
Given the information above, I think it would be good to put the house on the market in March/ April timeframe so, given a 60 day escrow, your home will be closed in May/ June timeframe. The timeline will coincide with your daughter's graduation then move out the house.
If an unexpected delay occurs, you can negotiate a "rent back" the house from the buyer.
Well here is the effect of rate increases vs values and there is little correlation until rates get pretty high
So the calculators are bull with that theory. Real estate is highly localized and any calculator that comes to a conclusion like that is nothing but click bait
You can see as National averages rates moving up and down with little effect on housing until we get very very high .this is based on Schiller data
Last edited by mathjak107; 12-17-2021 at 03:25 PM..
First house we bought in '80 had a 9 1/4 rate. Later 1986 moved , got a 10.0 rate. Refied a couple times but paid it off early. These rates now seem bargains to those days. Granted, houses cost less then.
First house we bought in '80 had a 9 1/4 rate. Later 1986 moved , got a 10.0 rate. Refied a couple times but paid it off early. These rates now seem bargains to those days. Granted, houses cost less then.
What was the purchase price and your salary at the time?
Inflation-adjusted wages are basically the same over those 35 years… so what % of your wages was the purchase price of that home?
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