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Loveroffinerthings t1_je2lto2 wrote

Interest rate are insane and I don’t want to pay inflated prices plus 6% interest rate.

83

BingBong022 t1_je2lxej wrote

Bought 4 so far, real-estate is gold

−31

derpbeluga t1_je2m11p wrote

Yes, I would. You can refinance that 6% mortgage in a few years when interest goes down, but you can never get back to the current prices. While it's high now, just wait a few years and it will be even higher.

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User0098237490 t1_je2nlb8 wrote

I would if Rhode Island had West Virginia’s housing prices.

29

tilario t1_je2nsba wrote

if i had the money.

narrator: tilario doesn't have the money.

130

Theo_dore229 t1_je2nxgg wrote

Replying to derpbeluga (#2,431,701)

Not only can you refinance, but current interest rates aren’t even that “high” by historical standards. For better or worse, we’ve been spoiled with low interest rates since they were slashed to zero in the wake of the financial crisis of 2008-2010.

Not currently in the market for a home at the moment, but if I had the money, I definitely wouldn’t be stopped by current interest rates.

21

TzarKazm t1_je2o8ne wrote

If you want/need a house now then buy one now. Trying to time the market is kind of a fools game. Some people get it right, but most people get it wrong.

Buying a house is a lifestyle choice, like a car, or a watch, if it's the lifestyle you want and you can afford it then you should do it.

20

ApolloKid t1_je2ofgk wrote

Replying to Theo_dore229 (#2,432,092)

You’re right that the rates aren’t high by historical standards, but home values certainly are. The values combined with current interest rates are making for higher monthly payments than the combination of any past rates and values ever has

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Theo_dore229 t1_je2ospb wrote

Replying to ApolloKid (#2,432,190)

Absolutely. My only point was mostly that it’s better to get your foot in the door regardless. While interest rates have definitely made housing prices go up, we have a fundamental shortage of housing. By a significant amount. At this point, even lower interest rates won’t solve that problem. It’s going to require coordinated policy decisions in multiple levels of government. That’s going to take a while to happen.

7

Livid_Will9194 t1_je2p46e wrote

Why would someone buy a house in RI ?Move to Texas s and buy same size house half the price and less taxation .

−28

PepperJack731 t1_je2pksy wrote

Replying to ApolloKid (#2,432,190)

I agree that values are high but I do not think they will decrease any time in the near future. COVID was a game-changer for the workplace and an increasing number of people are working from home. I suspect people who mainly work from home and commute to Boston a few days a week are going to continue driving prices up.

9

cheesusbreezus t1_je2q063 wrote

Rhode Island actually offers a grant currently for first time home buyers that could be worth checking out for some people!

https://www.rihousing.com/statewide-dpa/

I would need to save more money, but would consider buying over renting for a few reasons.

  1. I have a dog and rent prices with a dog are completely and utterly insane (if you can find somewhere that will even take them to begin with)
  2. Actually putting money into my own investment and not into the hands of landlords that don't give a crap about you.
  3. rent prices I've seen can range from up to anywhere to over 3k for a 2 bed. Why not buy a house and have your own land for a mortgage that's going to cost the same.

I know most of this depends on where in RI you buy. Realistically you can get a house for 350-375k in Warwick, Pawtucket, Cranston, West Warwick,etc. If you're looking for a nice place closer to the ocean in South County or Aquidneck Island then you're going to be paying probably closer to 550-600k.

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babith t1_je2q3ld wrote

I’m hoping to soon. I’d rather be house-poor than stay in my horrible apartment.

36

thebirbseyeview t1_je2qi3l wrote

Housing prices are high all across the country. I'd rather spend extra $ here than some shit state just to say I spent less than $100k on a house.

9

ballofstress12 t1_je2qz2v wrote

If you qualify for the free 17500..you can cover all your downpayment/closing costs and just refinance when rates go down

4

Livid_Will9194 t1_je2r6n7 wrote

Replying to thebirbseyeview (#2,432,695)

Truly you think Texas hates women ? You probably referring to Abortion right ? No one is gonna pay no one to live there . You will live there if u looking for affordable living . Gréât economy , less taxation and gréât roads .

−19

Selrach_401 t1_je2s424 wrote

Definitely not. The colleges and Airbnb as well as inflation and shit economic conditions have ruined the housing market around here.

4

Ri_Surf t1_je2sr3n wrote

My buyer’s offer just got accepted on the perfect house for them. They had been looking for months and lost out on another one that they loved. It’s definitely competitive right now, and you have to go in with your best foot forward if you find something and you’re serious.

8

Rustygaff t1_je2uoph wrote

Sure if i could afford one along the shore.

5

Kirenuchiha t1_je2vi1a wrote

I can barely afford an apartment, so my answers a hard no

4

bmyst70 t1_je2xhhr wrote

Replying to jujubean17 (#2,432,823)

I've heard it's because most homeowners who got nice 3.5% interest rates during the pandemic are obviously loath to sell their houses to get a 6.5% or 7% interest rate.

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hawtdawtz t1_je2zjxg wrote

I honestly don’t understand how an average Joe can afford a home in RI right now. I’d understand if you bought last year, but the mortgages on are insane for these prices.

13

NoellaChel t1_je312t3 wrote

Honest tough call I own so I would not sell/buy right now but rents being so high and hard to find housing for rent if I was a renter i definitely would be looking especially if I had kids even overpriced as I would the stabile but I would passive look vs active look

2

NoellaChel t1_je31p4j wrote

Replying to cheesusbreezus (#2,432,531)

Smart thought also though got to remember when you own something goes wrong you got to fix it so never buy a house without an inspection no matter how much they push! Its worth every penny! I encourage those wanting to buy to passive look my first home (long time ago$ I bought a perfect fixer upper it took almost 2 years of looking but I was not in rush had a decent rental etc. go see a mortgage broker learn about programs FHA 203 is awesome. This way when you find that perfect first home you prepared to jump

7

NoellaChel t1_je32iw4 wrote

Replying to TzarKazm (#2,432,153)

Another factor to consider is the “responsible”part I have friends who could easily afford a nice home but choose to rent as they don’t want to the headaches that come with homeownership theu like being able to call down maintenance and have them fix. (You don’t want to know what they pay for rent to have that nice maintenance option)

6

Shot-Perspective2946 t1_je334en wrote

Well, Rhode Island is small, and they aren’t making any more of it. So, why not.

3

siesta_gal t1_je365fn wrote

Replying to NoellaChel (#2,434,907)

I moved from Providence to south central Kansas in 2004...did well on the sale of my home (Elmhurst area) so I was able to pay cash for a new place here. Paid $42k for a 2 bed/1 bath with 1/3 acre lot. Extremely rural area, less than 1,000 residents. Quiet, peaceful, very low cost of living. Got a job at the prison 40 minutes north of town, made $58k in my first year (managed the prison kitchens) with a little OT and zero experience in that field.

The downside? I miss my family, the ocean, a vibrant downtown scene, great restaurants and nightlife. There is literally none of that here.

3

NoellaChel t1_je39d5g wrote

Replying to siesta_gal (#2,435,788)

No place is perfect but must feel good right now with all the housing crisis to know your home is yours. I get missing stuff I lived in VT and Florida but always came back to RI I love it here, Despite being so expensive

3

Tone_Deaf55 t1_je3a81y wrote

I would if there were any and i could afford the interest. But there aren't and I cant

3

abaum525 t1_je3eghe wrote

Replying to barsoapguy (#2,436,483)

"I’m a big fan of money. I like it, I use it, I have a little. I keep it in a jar on top of my refrigerator. I’d like to put more in that jar. That’s where you come in."

6

barsoapguy t1_je3fvmk wrote

Replying to abaum525 (#2,437,448)

Narrator: barsoapguy was also a big fan of money but instead or storing it a jar, he kept it in his favorite sock, what little there was. Luckily he had been very bad the year prior and with the Energy crisis was able to resell most of the coal that Santa had left him for a tidy profit

−3

idkmybffphill t1_je3gyvz wrote

Rates are higher than previous but historically these are still low. It's just getting harder for some to buy compared to the past few years. If you're able to buy... buying is usually a good bet

3

SnowWolfIzekeal t1_je3higt wrote

Are you kidding me? I'm struggling out here to find a job and get off SSI. I can barely afford the apartment I have now. I ain't gonna get a house when most apartments rent for $1000 or so and minimum wage can't even cover the cheapest apartment. So no. I will not buy a house in Rhode Island. On the topic of jobs, it would be swell if places were hiring people that just want to work. Those interviews are a waste of time when you're just looking for a job to earn money.

6

fishythepete t1_je3iib2 wrote

Replying to UltravioletClearance (#2,438,018)

Please tell me more about how rising interest rates and a looming recession is going to drive sales prices further upwards, oh wise one. My only frame of reference is the housing market following 2008 financial crisis, and the accidental rental properties I picked up back then. Clearly since you’re calling me a “sweet summer child” you have some vast and valuable experience you’d like to share?

−9

masoyama t1_je3onam wrote

Replying to cheesusbreezus (#2,432,531)

Lol at that price to income ratio. At my household we are looking to ideally buy a house around $500k ( below the limit) but we make over 3 times the household income limit. Cant imagine going into that much debt with those income numbers.

0

Mountain_Bill5743 t1_je3pbwf wrote

Replying to ballofstress12 (#2,432,727)

How are these offers going? At the income caps, it seems like the prices would have to be very low and the offers would have to be very flexible at a competitive market space.

Just wondering as I am hearing that the low down/FHA offers some friends did aren't really a thing anymore in the competitive starter home space. Realtor friends (actual friends lol, not hired) are saying it's pretty much 20% just to compete and I'm seeing data published at 30% cash offers in some parts of the state.

I do hope it is going well, but I am curious to hear from someone who has successfully navigated the program.

2

o8r8a8n8g8e t1_je3s1g2 wrote

Replying to masoyama (#2,439,126)

If you make 3x the household income limit, just buy a house normally and save the grants for people who need it. To be clear to those who haven't followed the links... you'd need to make over $300k to be "3 times the household income limit". What a crap complaint.

7

Mountain_Bill5743 t1_je3s46w wrote

Replying to Wide_Television_7074 (#2,439,177)

I'm not telling people to wait, this isn't 2007. I'm simply stating that your comment about what happened during the Great Recession here is at best misinformed and at worst completely dismissive of the suffering that people went through here in 2007 well into the 2010s.

Here's from when RI was in the top 10 worst list for underwater mortgages (published in 2012): https://www.nbcnews.com/business/business-news/5-states-drowning-underwater-mortgages-flna436089

The original article is no longer available but this snippet covers a bit of the challenge "Some of the states with a high percentage of underwater mortgages had economic problems long before the recent recession. States such as Michigan and Rhode Island have experienced long-term industrial declines for some time. In these areas, drops in home values were only accelerated by the recession."

4

masoyama t1_je3sbwv wrote

Replying to o8r8a8n8g8e (#2,439,632)

Im not complaining I don’t qualify lol. Im pointing out that the debt leveraging the state is incentivizing on its citizens is 3 times more than what we are comfortable taking on in my family. We make a lot more and still won’t buy a house at that price range as its taking on more debt than its sensible

7

fishythepete t1_je3u1b9 wrote

Replying to BingBong022 (#2,439,659)

So sales are down 20% from this time last year, so mark that down on the demand side.

Consider that the jump in interest rates over the last 9 months means that your mortgage and interest expense (ie the bulk of your mortgage payment) has almost doubled for homes priced the same. I.e. buying a $400,000 home today costs you about 80% more than it did a year ago. And home prices haven’t stayed flat either. The cost to own a given home is > 2.5-3X today what it was 3 years ago. But hey maybe demand is unlimited no matter the cost.

Simple though right 🙄

−7

Beezlegrunk t1_je3v0me wrote

Replying to BingBong022 (#2,439,697)

Sort of like saying, "Don't hate slave-owners, hate slavery as an institution. Free labor is desirable. Capitalism."

Doesn't sound so great when it's applied to something that we as a society (eventually) decided was morally indefensible. And forcing people to be wage slaves so they can pay 30%+ of their income for housing is indefensible, especially if the reason is just to enrich other people at their expense (literally and figuratively).

Slave-owners perpetuated slavery — they weren't powerless "players" in a "game" they didn't control or were forced to play, they benefitted from it and wanted it to continue. Just like you do.

Eventually we fought a long and bloody war that ended the formal system of human exploitation called slavery. So hate the player and the game — and especially players who try to pretend they're not the reason the game is still being played ...

−1

RhodySeth t1_je4i538 wrote

I mean I wouldn't. I already live here. But there are worse places to live.

1

realbusabusa t1_je4imwa wrote

No, because then I would have to live in RI.

−6

3-Inch-Hog t1_je4jj22 wrote

Replying to Loveroffinerthings (#2,431,662)

If you can get a house at a good price point, you can always refinance when the rates go back down. I’ll take a cheap house with a higher rate over an expensive house with a lower rate. You can’t fix it after you’ve overpaid

9

Synchwave1 t1_je4jpac wrote

It depends how you view the forward outlook of the state. Historically, things start West and work East. By that measure, the east is a ways away from the values seen in places like California heading into parts of Canada. People get bogged down in what should be or what they think. Reality is as “inflated” as home prices are, limited supply met with unlimited demand means price will keep going just at a slightly lower rate than we’ve seen the last few years as market has to adjust to interest rates.

If you’re buying for long term or an investment, now is always the best time to buy real estate.

1

ballofstress12 t1_je4o9du wrote

Replying to Mountain_Bill5743 (#2,439,228)

I have! I’m buying a house right now with it. I have decent income, good credit, but didn’t have 20k to put down. I’m buying a house for 285k. It’s small and the morgage is high but not comparably to what I’m paying in rent

2

TzarKazm t1_je4wfew wrote

Replying to NoellaChel (#2,444,422)

I hear you. For me, it's about 60/40 like/dislike. I feel like maybe a condo would have better suited me, I'm just so tired of things that need to be fixed. Some people are good at living with things that are not quite right, I am not one of those people. Everywhere I look, I see something that could be better, and it stresses me out.

I spent over a hundred thousand fixing this place when I bought it, and I still spend an amount equal to about half my mortgage every year just on upkeep or maintenance.

Not to mention the hundreds of hours I put in a year doing maintenance myself.

It's definitely a lifestyle choice, and it's not for everyone.

2

snowthunders t1_je4zjob wrote

Replying to cheesusbreezus (#2,432,531)

Does anyone have any experience regarding how the income limit is calculated? My wife and I were certainly under the limit last year (just did our taxes), but this year we might end up just over it. I wonder if they measure by paychecks or taxes? Or something else?

1

Swamp_yankee_ninja t1_je50plv wrote

No, If I had the 5% or more for a down payment I would would wait it out and live in a van down by the river before I spent it on a house in RI right now. High Interest rates and inflated home prices don’t mix, something has to give. It’s not just in RI, I watched real estate values spike after 2020 up north as well, people buying property up north, NH, VT and ME sight unseen in some cases. The pandemic unfortunately had people living in the cities thinking about wide open spaces, and man did they buy up property, this has caused value to go up and inventory to go down as well. Inventory in RI is at an all time low, however I’m optimistic that will change. The economy right now is like a train wreck in slow motion, some people are affected more so than others. If you have money, hold on to it as others may not, this will cause a sell off. People who bought homes in the past 3 years paid way over what they should have, they are dealing with a large mortgage payment, one or two monkey wrenches in their life and boom all done. Now times that by thousands.

1

Mountain_Bill5743 t1_je546rg wrote

Replying to Wide_Television_7074 (#2,446,210)

Yes, by now you would have succeded, but your statement earlier about 2012 being profitable after 2007 is misleading. Many people were still selling at a loss back then if they needed to move/divorce/etc and I'm just showing you that the data says otherwise.

2

MoreLab5278 t1_je54b9x wrote

Replying to Loveroffinerthings (#2,431,662)

6% in the history of mortgages, is pretty average. We've been living in a bubble where 0-3% was "the norm" however it was anything but.

Also.. the inflated prices, won't deflate. Infact I think they can go higher.

Less and less people are willing to sell their homes because they locked in such a low rate. As long as demand is where it is, and inventory keeps dropping.. guess where the home values go...

2

UltravioletClearance t1_je550yc wrote

Replying to fishythepete (#2,438,207)

> rising interest rates

Doesn't matter. There are always buyers who aren't sensitive to interest rates - all-cash buyers, buyers with massive equity who can stomach a high interest rate on a small mortgage, and of course corporations and house flippers.

> looming recession

No one has ever successfully predicted a recession. Every historical recession came out of the blue with no warning. This is no different. The media and corporations are certainly trying to convince us we're in a recession, but we have the lowest unemployment rate in 20 years and a strong economy so no one's buying their FUD.

>drive sales prices further upwards

Three words - supply and demand. No supply, sky-high demand regardless of economic conditions or interest rates.

2

pweedith t1_je57g4r wrote

Replying to Loveroffinerthings (#2,444,418)

Don't expect prices to really come down much if at all. Interest rates may be up but it comes down to supply and demand. Home construction has been outpaced by population growth for over a decade. This lack of supply is what will keep the housing prices stable right now. And waiting for interest rates to come down just means home prices will go up again. The best thing is to find a monthly payment you can afford and hope to refi in the next few years. Overtime the homes will be worth more, I bought in 2019 and thought prices were high then but it kept going up.

3

StunningConfusion t1_je5b8rs wrote

I would like to but the houses are getting bought really cheap and getting flipped with shit box store materials and resold for 1.5 times the original price or they don’t even get fixed up and just get put back on the market 91 days later. I’m so sick of it.

Yes, I know it’s “the game” but wtf. The prices are getting out of hand and the average person can barely afford these houses and have decent DTI ratios.

2

SnooDrawings7662 t1_je5g4o6 wrote

Replying to pweedith (#2,448,745)

Here in Barrington - Prices are coming down a little bit.. but it's still close to top of market - maybe only a couple percent..Zillow claims my house has dropped 10 % from peak in june 2022, and down about 2 % in last 30 days.. if you believe zillow..The biggest difference is that houses are staying on the market longer - e.g. 10 days instead of 1 day..I believe that there will be at least two houses in my neighborhood this spring.. it'll be interesting to see what they go for.

5

pweedith t1_je5gnzw wrote

Replying to SnooDrawings7662 (#2,450,510)

Zillow is hit or miss. They just use algorithms that don't always factor things in properly and can sometimes use outdated information, especially in a changing market. Also, with spring starting up I feel that those days on market are going to shorten again...as long as the house is priced properly. The ones that sit the longest tend to be priced too high, a properly priced home will sell quick because there is no shortage of buyers looking.

2

SnooDrawings7662 t1_je5jfeq wrote

Replying to pweedith (#2,450,615)

Oh, Agreed - Zillow's data and numbers are guesstimates at best. I don't think Zillow is accurate in specific cases, but I think it is a useful comparison tool to look at overall trends.

Even with that - just looking around town, around my neighborhood, and talking with people - in the past two or three years, I haven't heard of a single house going for under asking price. It's all at asking price, or over. Usually, if the house stays on the market longer, it's at asking price, at least that's what I have seen with my admittedly incomplete information. To be fair, the number of houses sold here is so low, that getting an average selling prices is ... usually an N=2.. so it doesn't mean much.
And lots of houses are never on the open market, they go pocket listings - so you don't really know until 30-60 days after the sale has closed.

1

Actual_Heart7266 t1_je5o8f5 wrote

I would buy, mainly because we just did last week. We plan to refinance if and when the rates lower. My parents bought at a 18% rate in the 70’s so comparatively 6.49% wasn’t as terrible as it could be. Supply is low so it’s definitely a seller’s market but if you have the right timing you have a fighting chance. Good luck!

2

Signal_Masterpiece_4 t1_je5xedm wrote

I mean, I already do. But, hypothetically? yes.

Why? Safest state in the country, with absolutely ZERO school shootings.

Also, the most ethnically diverse state in the country. So,come to RI. We come off a little rude, but we just live fast.

2

fishythepete t1_je61rtp wrote

Replying to BingBong022 (#2,453,031)

>False inventory is down because nobody is selling

it looks better than it did this time last year relative to demand.

Bolded it for you to help you figure out what you missed. Inventory changes don’t happen in a vacuum. They happen against a backdrop of changes like rising interest rates and economic concerns.

>the prices of all my properties have increased from last year

Congrats, you had the good luck to live close to a few major markets and not bumfuck Indiana. The median existing-home sales price was down 0.2% to $363,000 in February compared to a year ago. This is the first drop that has happened in 11 years. If you think it is an isolated event, you might want to chart some NAR data, because you clearly can’t see which way the wind is blowing.

−1

boulevardofdef t1_je6bqmh wrote

Replying to Wide_Television_7074 (#2,435,922)

I bought in February 2022. I didn't quite get the historic low rates, but they sure were a whole hell of a lot lower than they are now (about 3.5%). I probably got a deal at the time (incredibly enough, as the market was still really competitive), but Zillow says I'm up about 9%.

2

Beezlegrunk t1_je6c7q8 wrote

Replying to BingBong022 (#2,455,464)

I make a comfortable living without exploiting other people — as do most of us. Guys like you are the outliers: Pretending they're powerless not to take advantage of others, when it's really just a function of their own greed.

Just own it, dude, instead of blaming some mythical "game". The fact that you trot out lame excuses shows you know what you're doing is not OK ...

−1

Peter_Nincompoop t1_je6r2v8 wrote

So long as the house you're wanting to buy isn't a shitheap, and you've got enough money to stomach the high interest rates until they crash and you can refinance, there's no reason not to buy property. If you're able to sell and buy in the same market, like we did last year, your high price sale offsets the high price purchase, and you're (hopefully) in a nicer house than when you started.

1

Beezlegrunk t1_je6wmmw wrote

Replying to BingBong022 (#2,460,575)

Your Gordon Gekko retort-generator is really lame. You're clearly incapable of offering any sort of reasoned argument to justify exploitation, so all you can do is try to deflect people's attention from it. But since you obviously don't care how your greed affects other people, at least be a big boy and own it ...

0

Beezlegrunk t1_je74yzu wrote

Replying to BingBong022 (#2,461,436)

Translation: "I don't care about anyone but myself."

Welcome to me-first America. Of course, when your housing-exploitation hustle collapses, you'll be crying for a government bail-out and suddenly it'll be all about "we" instead "me" ...

0

Ok_Connection3468 t1_je77zx0 wrote

Absolutely not, houses here are old trash compared to other parts of the country and WAY more expensive than 90% of the rest of the country

2

fishythepete t1_je7ecnq wrote

Replying to Wide_Television_7074 (#2,446,210)

But for the disruption of the pandemic, you’d have been lucky to break even. Average price in the national housing market doesn’t fall often. When it starts to fall for the first time in 10+ years, that’s probably not the time to buy.

1

howsyourlife t1_jea3d8g wrote

Replying to hawtdawtz (#2,434,395)

Transplants, typically from MA CA NY TX, who wfh and don't bat an eye paying above asking or engaging in bidding wars. These are usually the same people who would shit on RI constantly before Covid as being boring, uneducated, nothing to do, not progressive or diverse enough, etc. Now they're gushing about OMG how much they love living in cute artsy RI (especially the East Side) and avoiding the "rat race" and commute of the HCOL city they were infatuated with just a few years prior.

2