391–400 of 510 posts
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I’d disagree in the sense that the home ownership population differs from those that have been buying or selling in the last few years.
If millennials were not buying homes at similar rates to their parents, the home ownership rate would be declining
Earlier quoted context omitted.
I’d disagree in the sense that the home ownership population differs from those that have been buying or selling in the last few years.
If millennials were not buying homes at similar rates to their parents, the home ownership rate would be declining
My wife and I will be moving to Chicago soon and we intend on buying a house when we get there. How screwed are we by the current housing situation and interest rates?
I grew up in Chicago and love Chicago, so I'll try to say this as politely as possible - don't expect your property to hold any value in IL. Anecdata - I have friends that lived there for 8+ years, then moved to the south in the last 2 years and their property value barely budged.
Just closed financing on a home. Rocket had a comparable rate but the real no-go for us was their very-limited rate-lock option. With interest rate trends what they are right now, we really needed a 200 day + rate lock with a float-down in case things changed. Other lenders (builder, ownup options, local banks) offered those and the option to buy points and apply them if we were able to float down. Rocket seemed very…
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How soon? If trends continue, prices will start falling. You might be able to offer under asking, too. I bought 15% under asking in October of last year. Chicago didn't really go crazy like Phoenix or Palm Springs...
15% under asking?! That is a wild revelation to someone comparing greater Denver housing market, where adding 30% is required just to be considered.... I've been watching Zillow pretty consistently over the past few weeks, and have noticed price drops as well as longer days on the market in the Chicago area. Knowing values don't increase much isn't really a deterrent considering the desirability of the location.
1) I used their seller's agent, and he gave me ~3% to get the deal done. So really only 12% under asking.
2) The asking price was too high to begin with.
3) The market had started to cool, and they wanted to sell since Winter was coming and Winter isn't a great time to sell a $1M+ condo in Chicago.
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I grew up in Chicago and love Chicago, so I'll try to say this as politely as possible - don't expect your property to hold any value in IL. Anecdata - I have friends that lived there for 8+ years, then moved to the south in the last 2 years and their property value barely budged.
What are some nice neighborhoods around Chicago?
The wealthiest suburbs are on the north shore, the towns directly north of the city starting with evanston going to lake forest. Oak park area is basically the Berkeley of chicago, lots of highly educated, high earning left leaners. Naperville and hinsdale have a lot of money too, never been myself though.
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> I'm not interested in placing bets on my salary That's exactly what you already do if you're renting: you're betting that you will be able to work and earn enough salary to afford the rent, with your adjusted expenses. That's "pfft easy" when you're in 20's, easy in your 30's, okay in your 40's (kids need money, yo), doable in your 50's, oh shit when you're 52 because surprise! economic downturn / medical emergency…
> And now you don't have a place to live in and spending your retirement money to rent one, or take a dip in your quality of life. As you say, keeping up with rent is easy (not necessarily, but for those in professional careers) early in life, but as your income plateaus later in your career it starts to become harder to keep up with relentless rent increases. But then it's in retirement that a lifetime of renting re…
That assumes that the mortgage (+tax, +maintenance, +etc) is the same cost or less than renting is. That almost certainly isnt the case at first - at least in the area I live, I see houses renting for far less than just the interest on the mortgage would be (if purchased today, presumably the owners bought at lower prices and/or lower interest rates).
Just closed financing on a home. Rocket had a comparable rate but the real no-go for us was their very-limited rate-lock option. With interest rate trends what they are right now, we really needed a 200 day + rate lock with a float-down in case things changed. Other lenders (builder, ownup options, local banks) offered those and the option to buy points and apply them if we were able to float down. Rocket seemed very…
Could you tell me which other lenders are offering 200 day + lock. With interest rates changing so fast, I get a hard time with lenders letting to lock rates even for 60 days.
Just closed financing on a home. Rocket had a comparable rate but the real no-go for us was their very-limited rate-lock option. With interest rate trends what they are right now, we really needed a 200 day + rate lock with a float-down in case things changed. Other lenders (builder, ownup options, local banks) offered those and the option to buy points and apply them if we were able to float down. Rocket seemed very…
If you're discussing builder financing: New in-progress construction loans are different than traditional mortgages. Not everybody plays in that space.
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Exactly. I believe interest rates bottomed sometime in 2020-2021. Those rates are not going to be seen for another few decades. It remains to be seen what this will do to house prices. What happened to most speculative tech stocks since 2021 can also happen to other asset classes.
It seems pretty premature to say that mortgage interest rates that happened barely over a year ago won't happen for a few decades. You could have looked at interest rates below 3.5% in 2013 and said the exact same thing; that was the lowest interest rate in over 40 years!