dbnoho t1_ix10pyq wrote
Interesting question. Seemed to me that there was a final frenzy of inflated prices over the summer as people rushed to lock in rates they knew were going up.
The fed wants to crush the housing market so who is braving it to buy right now?
My mortgage would be 50% higher with current rates (bought in 2019). I can’t imagine someone paying nearly 2x (what it would be with the Redfin estimated price and current rates)
trimtab28 t1_ix1652q wrote
Think it depends what you have for a downpayment. I sold some stock off before the COVID crash and held in cash since, and have toned down how much I'm throwing in the market given how topsy turvy it is. Just watching to see at what point people start cutting prices for condos- I can tolerate a higher interest rate if they come down enough since I have a pretty healthy downpayment ready.
In short, if you're buying right now you're doing it in cash. Although point taken on braving it- even if you have cash, it's a waiting game since I don't think we're anywhere close to bottoming out on any price cuts. I'm slowly starting to see them now- seems people just let stuff sit on the market for longer and longer and have been avoiding price cuts. We'll see if/when any cuts become more than just a trickle
UltravioletClearance t1_ix1dlhb wrote
Why not buy now and refi when they go down?
PrinceWalnut t1_ix1gqye wrote
A few reasons:
- You probably can't afford it right now
- If you can only afford it for a while but not sustainably, you run a big risk of getting foreclosed on before the market normalizes
- Your financial situation (credit, etc) might change and refinancing later may not be as fruitful as you think
- Your asset is very likely to reduce in value (at least relative to the overall market) if you're expecting prices to drop
- Always buy low, sell high, never buy high unless you have to. Even if you're not selling, your heirs might need to.
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