Housing Market Slowdown

[SAB1]

Originally Posted by thinkxingu

I think that's part of it, sure, but I also think a lot of today's younger generation no longer wants the "baggage" of extras in their life, nor can they afford them.

So, even though there's "only so much waterfront to go around," as Flying mentions above, if there's less demand from younger generations, it's a simply formula.
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This is very true. Can be seen in more than housing purchases as well.

[Mr. V]

Continued high interest rates have a chilling effect, as I suspect does the "aging out" of the boomers who now own most of the lake front properties.

There simply are not as many younger folk with the resources to buy as there are boomer sellers, and this will likely worsen over time.

It's a numbers game.

[ApS]

Originally Posted by Mr. V

Continued high interest rates have a chilling effect, as I suspect does the "aging out" of the boomers who now own most of the lake front properties.

There simply are not as many younger folk with the resources to buy as there are boomer sellers, and this will likely worsen over time.

It's a numbers game.

Definitely a numbers game.

Washington is pressuring "The Fed" to lower interest rates; when that happens, the dam will break.

BTW: I have an opportunity to buy into a Florida house with an assumable 3.5% interest rate. I'm considering it.

[jeffk]

It's a complex game.

Interest rates are still a bit high. The best rates require a high credit score.

Since prices are still up, down payments are higher, requiring more cash on hand.

The interested buyers already grabbed theirs during the last few years and the pool of buyers may be reduced. This is a normal cycle.

Since many people put their houses on the market as prices rose, there may be less people willing to sell for a while. This reduces choice; again a normal cycle.

The change in federal government has put many people in doom & gloom mode and there is certainly enough change going on to make people cautious about a large purchase.

Plus a lot of the issues already mentioned.

Each potential seller and buyer has their own reasons for acting or not acting.

Fun to talk about and speculate, almost impossible to conclude anything.

[Biggd]

Real estate is always a tug of war between supply and demand. It's beginning to balance out, supply slowly increasing and demand slowly decreasing.
I think the stock market rising has made wealthy people wealthier, so the high-end properties are still moving. It's much easier to take some profits when the market is sky high.
Being 71 gives me a different perspective, rates don't look that high to me.

[tis]

Originally Posted by Biggd

Real estate is always a tug of war between supply and demand. It's beginning to balance out, supply slowly increasing and demand slowly decreasing.
I think the stock market rising has made wealthy people wealthier, so the high-end properties are still moving. It's much easier to take some profits when the market is sky high.
Being 71 gives me a different perspective, rates don't look that high to me.

I agree with you. Rates used to be much higher. In the late 80s we had a business loan at 21% I have no idea how we managed it, looking back.

[Biggd]

Originally Posted by tis

I agree with you. Rates used to be much higher. In the late 80s we had a business loan at 21% I have no idea how we managed it, looking back.

I got burnt one time back in the 80's and it taught me a very valuable lesson, never follow the crowd, you don't want to be late to the party.
Experience tells me this party is, to use an old man expression, "long in the tooth".

[Garcia]

Originally Posted by Biggd

Real estate is always a tug of war between supply and demand. It's beginning to balance out, supply slowly increasing and demand slowly decreasing.
I think the stock market rising has made wealthy people wealthier, so the high-end properties are still moving. It's much easier to take some profits when the market is sky high.
Being 71 gives me a different perspective, rates don't look that high to me.

This is key - the wealth gap continues to grow which has a huge impact on waterfront/second home purchases. Prices are never going to be affordable for "regular" (create your own definition!) people like was the case 30 years ago. The divide will grow. Those who own waterfront property may get priced out due to taxes/upkeep but there will continue to be buyers that will cause prices to steadily rise over time.

[TheTimeTraveler]

Originally Posted by ApS

Definitely a numbers game.

Washington is pressuring "The Fed" to lower interest rates; when that happens, the dam will break.

BTW: I have an opportunity to buy into a Florida house with an assumable 3.5% interest rate. I'm considering it.

Interesting that you found a very rare assumable loan. Is that a VA loan?

For the younger Forum readers, most every home loan written was assumable up until the late 1960's or early 1970's. It was then that the lenders woke up and realized that they could make a lot more money by writing a higher priced fresh loan (charging "points" and closing costs). Assumable loans all but disappeared.

Profits always seem to rule the day.......

[ApS]

Originally Posted by TheTimeTraveler

Interesting that you found a very rare assumable loan.

Is that a VA loan?

For the younger Forum readers, most every home loan written was assumable up until the late 1960's or early 1970's. It was then that the lenders woke up and realized that they could make a lot more money by writing a higher priced fresh loan (charging "points" and closing costs). Assumable loans all but disappeared.

Profits always seem to rule the day.......

It's a "brick and mortar" bank loan, written in 2016.

[ApS]

Originally Posted by TheTimeTraveler

Interesting that you found a very rare assumable loan. Is that a VA loan?
For the younger Forum readers, most every home loan written was assumable up until the late 1960's or early 1970's. It was then that the lenders woke up and realized that they could make a lot more money by writing a higher priced fresh loan (charging "points" and closing costs). Assumable loans all but disappeared.Profits always seem to rule the day.......

Yes, it's a 2016 brick-and-mortar VA bank loan, at 3.125%

Just found out when I requested a pre-purchase application, now enroute, post-haste, to me.

[BillTex]

Originally Posted by ApS

Definitely a numbers game.

Washington is pressuring "The Fed" to lower interest rates; when that happens, the dam will break.

BTW: I have an opportunity to buy into a Florida house with an assumable 3.5% interest rate. I'm considering it.

Florida real estate is a mess right now with condo re-assessments and homeowners insurance availability,
Just sayin’…

[BillTex]

Originally Posted by ApS

Definitely a numbers game.

Washington is pressuring "The Fed" to lower interest rates; when that happens, the dam will break.

BTW: I have an opportunity to buy into a Florida house with an assumable 3.5% interest rate. I'm considering it.

Sorry-double post…I am on a plane right now to…Florida!
WiFi is kind of wonky.

[Descant]

Whether it be $10K or $50K, we would have a better persdpective if we kew the asking price ranfe. I doubt the RE Agent was being greedy--his/her share of the $10K would only be a few hundred in most cases. Special conditions would justify the $10K ask, such as-- furnshed? Occupancy wutrhin 20 days, etc.

[Juiced06GTO]

It seems like listings on Winni are lasting longer and price cuts are happening. They are still almost double what they were 5 years ago, but at least some are moving down. Most of the island places I have been watching have had some fairly significant reductions (25-50K) over the last month, but 650-750K for an island property while still needing to purchase a slip is still not that appealing unfortunately.

[codeman671]

Originally Posted by Juiced06GTO

It seems like listings on Winni are lasting longer and price cuts are happening. They are still almost double what they were 5 years ago, but at least some are moving down. Most of the island places I have been watching have had some fairly significant reductions (25-50K) over the last month, but 650-750K for an island property while still needing to purchase a slip is still not that appealing unfortunately.

I watch the island market very closely and often hear of things coming before they are listed (I cast a wide net!). The inventory in general has been low this season. Rattlesnake listings haven’t been moving at all. It seems many of the listings are still priced for the Covid market and will sit.

[BillTex]

Originally Posted by Descant

Whether it be $10K or $50K, we would have a better persdpective if we kew the asking price ranfe. I doubt the RE Agent was being greedy--his/her share of the $10K would only be a few hundred in most cases. Special conditions would justify the $10K ask, such as-- furnshed? Occupancy wutrhin 20 days, etc.

List price = $450k (small house, suburb of Chicago).
Ever.
It is the only offer they have to date.

At $50k over asking, you either accept the offer or not. But to counter by asking more? Crazy.

Anyone else ever counter offer an over asking bid by looking for more $?
I thinks its the best way to lose the sale.

[John Mercier]

Originally Posted by SAB1

This is very true. Can be seen in more than housing purchases as well.

Very hard to get quiet on the lake(s) now, and much less of a focus on hunting and fishing for those that are.

Smaller lakes and ponds are offering a better outlet.

[sky's]

[QUOTE=John Mercier;402868]Very hard to get quiet on the lake(s) now, and much less of a focus on hunting and fishing for those that are.

Smaller lakes and ponds are offering a better outlet.[/QUOTE