Bought my 4/2 house 3-4 years ago for 272000 on 2.625%, P&I, Escrow, Home insurance all comes out to $1530 a month.
My friend tries to get approved to buy a similarly priced house but today’s interest rates would make his payment like 2250.
Feelsbadman
Refinanced to 2.9 400k mortgage. Life can’t be much better for someone who took advantage before the spike. Inflation hedge and equity is rocketing.
For real. Last few years my house went from 272k to 560k. Its insanity
I just don’t see myself selling ever, as I would get less than I could just remodeling, not to mention renting while looking for the next place is a plague on anyone’s life.
It’s cool that my kids and family will have this extra money in the future, but I cant imagine selling and waiting years till houses “tank” to reap on this amazing profit.
Unless you just decide to live in a van or tiny house lifestyle where you could indeed reap on this huge influx in House price. It’s likely you’ll have to spend $$$$$$ on the transition to a better house than just keeping your good one now.
Luckily for me, I’m looking at a situation where moving in the next couple years takes me to an area where the outright from seeking my house almost endless me to buy like a 5/3 outright
Yea like houses here in WA are like 400k in 2008 800k in 2017 1.6 mil in 2022. I dunno if I could even get a decent house even if I sold in my area it’s just too insane.
California is barely worse. However many are moving up here driving prices sky high.
Sure inflation is happening, but it’s more that demand for a good location is impossible to achieve for a decent lot and house.
Where in WA? Im in the west puget sound area.
Snoh County NW
I love the area. But I’m considering moving back to Montana
Tell your friend to
marry the house and date the rate
things change around as you can see
I do not blame you, living elsewhere would be nice, but schools in WA are pretty good for our son.
Yeah thats one of the bigger concerns. Schools in WA are pretty good, but MT only has a couple decent school districts.
oh damn, I’m in snohomish county too!
they are only gonna go up, IMO will likely keep climbing till around 15 to 20%,… Sucks, but is the only way to kill inflation =(
Crazy that you guys all live in Puget Sound, I live in Tacoma.
I think people need to understand the precipice we are on.
Raising the interest rates and retention rates for banks is necessary to slow down the velocity of money and inflation. That increase in rate increases the government’s debt payments and causes the markets to go down. Lowering the interest and retention rates back will shoot the markets back up and make inflation worse. Both options hurt. ~9% inflation is going to be really hard to beat. Something like 3/4 of the dollars that exists now didn’t exist before 2020 or 2021. There is a price to pay for that.
As far as the housing market goes. This situation for the last two years is why institutional investment groups have been able to acquire the 30% of residential housing units in the country that they now own. The retention rate going to 0 meant a lot more in this situation than the low interest rates did, because those big institutions got to buy up all of that real estate on basically infinite leverage. The interest rate being 3 or 6% for them means a lot less, because either is easier to beat in ROI than what they would have been able to do with a standard 15 or 25% retention rate (i.e. they can’t leverage more than 4x their assets). More money exists now, the same amount of houses exist as before (this is an exaggeration, but estimates are that we won’t even be close to meeting demand with new builds within 5 years), so if you owned one going into this bubble, you are very well off. If you didn’t, getting into a new house is pretty much impossible.
Yup, in the form of you don’t get as much from your pay.
And if they don’t fix the inflation, the economy will die anyway…
Yeah player housing is crazy expensive
Its why the boosters are so active.
Buying a house to live in, fast track to the poor lane.
The filthy coastal elites are buying up Idaho at an alarming rate. I would imagine it’s bad in Montana too.