Closed on Mom's house two weeks ago, for a premium over listing price. It was on the market for 18 hours and sold 6 hours into the Open House. Dad and Mom would have been pleased; the house was in the South Hills of Pittsburgh. Not slowing here, IMHO.
When Mom and Dad sold their last house in 1979 to buy this one, Dad spent more time painting the For Sale sign than it took to sell it. Dad was putting the sign in the ground when friends of a neighbor came over and bought it for cash.
:The first “deceleration” and “signs of a tipping point” cropped up in the S&P CoreLogic Home Price Index, which was released today. But today’s data for “April” consists of the three-month average of closed home sales that were entered into public records in February, March, and April, representing deals that were made a few weeks earlier, roughly in January, February, and March, funded with mortgage rates prevalent at that time and earlier for home buyers with pre-approved mortgages with rate locks when they were pre-approved, so roughly based on the mortgage rates prevalent in December through March, ranging from 3.2% to 4.7% (green box)
Real estate prices are sticky and people won't sell unless they have to. In the 2009 GFC, it took two years for prices to bottom. We bought our second home at that time and paid $62/sq. ft. for it (3 year old 2,000 sq. ft. brick ranch in Spring, TX). It sold new for around $200,000 in 2007.
Once mortgage rates go higher with increased fed funds rate increases, there will be less people who will be able to afford a mortgage and prices of homes will fall to accommodate those higher rates.
It does this in cycles and it's no mystery.
Aja, I will never be able to buy anything again, because you will have to pry my 2.75% note from my cold dead hands, ha.
Good point about selling/buying in the same market. If your purchase price is lower wouldn't your property taxes also start out lower in most places right? So that could be a possible silver lining, after all property taxes are forever.
Most non-seniors, pay more in taxes when they change homes in CA because their taxes reset to market rate vs the prop 13 rate.
I've advised my kid who wants a house to start looking seriously this fall into winter.
I might even write a private mortgage so I can collect his $ instead of a bank.
That's probably why a lot of retirees are cashing out, downsizing, and moving out of CA to places like Nevada, Arizona, Texas and Florida (and other states).
Wow low property taxes nice! Get ready were all coming to Vegas!Californians have been retiring to Reno in droves. Besides the no state income tax our property taxes are extremely low. The formula takes the age of the home into consideration so the older your house the less taxes you pay.
For instance the property taxes on the house I sold last year for 400k were only 720/year. My friends in Wisconsin have suggested I move back but besides not liking the weather property taxes would take a big bite out of my budget despite property being cheaper.
Californians have been retiring to Reno in droves. Besides the no state income tax our property taxes are extremely low. The formula takes the age of the home into consideration so the older your house the less taxes you pay.
For instance the property taxes on the house I sold last year for 400k were only 720/year. My friends in Wisconsin have suggested I move back but besides not liking the weather property taxes would take a big bite out of my budget despite property being cheaper.
Fortunately for us, prop 13 and it's add on's - property tax is not a concern. Our current house was purchased from my dad. And we were able to transfer his super low prop 13 tax rate. Then when we move, we can transfer it again because we're over 55. But that will be the last transfer of the low rate.
Most non-seniors, pay more in taxes when they change homes in CA because their taxes reset to market rate vs the prop 13 rate.
Aja, Tomahawk Wisconsin is farther up north so definitely colder than Kenosha and they get a lot more snow. Winters aren’t a big deal when younger but really suck in old age.
I worked for the American Brass in Kenosha and it gets pretty cold with the lake effect. Maybe not as much snow though as Tomahawk.
Californians have been retiring to Reno in droves. Besides the no state income tax our property taxes are extremely low.