- This topic has 35 replies, 5 voices, and was last updated 14 years, 7 months ago by
briansd1.
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May 8, 2011 at 8:28 AM #694701May 8, 2011 at 8:40 AM #693520
ocrenter
Participant3400 sqft for $570k
just running some numbers on something like this, if you have 20% down, we are looking at $2250 on monthly mortgage cost. property tax/MR/HOA is another $900/month. Total monthly housing cost is $3150.
I do believe that is less than rental cost in the area. correct me if I’m wrong.
May 8, 2011 at 8:40 AM #693598Participant3400 sqft for $570k
just running some numbers on something like this, if you have 20% down, we are looking at $2250 on monthly mortgage cost. property tax/MR/HOA is another $900/month. Total monthly housing cost is $3150.
I do believe that is less than rental cost in the area. correct me if I’m wrong.
May 8, 2011 at 8:40 AM #694205Participant3400 sqft for $570k
just running some numbers on something like this, if you have 20% down, we are looking at $2250 on monthly mortgage cost. property tax/MR/HOA is another $900/month. Total monthly housing cost is $3150.
I do believe that is less than rental cost in the area. correct me if I’m wrong.
May 8, 2011 at 8:40 AM #694351Participant3400 sqft for $570k
just running some numbers on something like this, if you have 20% down, we are looking at $2250 on monthly mortgage cost. property tax/MR/HOA is another $900/month. Total monthly housing cost is $3150.
I do believe that is less than rental cost in the area. correct me if I’m wrong.
May 8, 2011 at 8:40 AM #694706Participant3400 sqft for $570k
just running some numbers on something like this, if you have 20% down, we are looking at $2250 on monthly mortgage cost. property tax/MR/HOA is another $900/month. Total monthly housing cost is $3150.
I do believe that is less than rental cost in the area. correct me if I’m wrong.
May 8, 2011 at 9:17 AM #693530briansd1
Guest[quote=SD Realtor]I would agree with ocr. You missed the bottom by about 2 years. No we are not close to a bottom. You will need to wait for interest rates to start to run up again which will take awhile. If you can hit mid 500s for something decent then you will do well. When long term mortgage rates run up past 6 or 7% then prices will reduce slowly. That may take awhile though.[/quote]
I also agree, for that area… but there’s something else at play also.
How many of the peak $900k houses still have not foreclosed? Now that the same houses are selling for mid $500k, what are the incentives for those who bought at the peak to hold on? Maybe we haven’t seen all the strategic defaults pay out yet.
May 8, 2011 at 9:17 AM #693608Guest[quote=SD Realtor]I would agree with ocr. You missed the bottom by about 2 years. No we are not close to a bottom. You will need to wait for interest rates to start to run up again which will take awhile. If you can hit mid 500s for something decent then you will do well. When long term mortgage rates run up past 6 or 7% then prices will reduce slowly. That may take awhile though.[/quote]
I also agree, for that area… but there’s something else at play also.
How many of the peak $900k houses still have not foreclosed? Now that the same houses are selling for mid $500k, what are the incentives for those who bought at the peak to hold on? Maybe we haven’t seen all the strategic defaults pay out yet.
May 8, 2011 at 9:17 AM #694215Guest[quote=SD Realtor]I would agree with ocr. You missed the bottom by about 2 years. No we are not close to a bottom. You will need to wait for interest rates to start to run up again which will take awhile. If you can hit mid 500s for something decent then you will do well. When long term mortgage rates run up past 6 or 7% then prices will reduce slowly. That may take awhile though.[/quote]
I also agree, for that area… but there’s something else at play also.
How many of the peak $900k houses still have not foreclosed? Now that the same houses are selling for mid $500k, what are the incentives for those who bought at the peak to hold on? Maybe we haven’t seen all the strategic defaults pay out yet.
May 8, 2011 at 9:17 AM #694361Guest[quote=SD Realtor]I would agree with ocr. You missed the bottom by about 2 years. No we are not close to a bottom. You will need to wait for interest rates to start to run up again which will take awhile. If you can hit mid 500s for something decent then you will do well. When long term mortgage rates run up past 6 or 7% then prices will reduce slowly. That may take awhile though.[/quote]
I also agree, for that area… but there’s something else at play also.
How many of the peak $900k houses still have not foreclosed? Now that the same houses are selling for mid $500k, what are the incentives for those who bought at the peak to hold on? Maybe we haven’t seen all the strategic defaults pay out yet.
May 8, 2011 at 9:17 AM #694716Guest[quote=SD Realtor]I would agree with ocr. You missed the bottom by about 2 years. No we are not close to a bottom. You will need to wait for interest rates to start to run up again which will take awhile. If you can hit mid 500s for something decent then you will do well. When long term mortgage rates run up past 6 or 7% then prices will reduce slowly. That may take awhile though.[/quote]
I also agree, for that area… but there’s something else at play also.
How many of the peak $900k houses still have not foreclosed? Now that the same houses are selling for mid $500k, what are the incentives for those who bought at the peak to hold on? Maybe we haven’t seen all the strategic defaults pay out yet.
May 8, 2011 at 10:12 AM #693545SD Realtor
ParticipantThe banks have already been able to cope with dribbling out defaults. The question is not whether there are still more foreclosures to come. We already know that there are alot of foreclosures and short sales still in the pipe, more then likely a few more years worth.
It should be painfully apparent that distress will not crash the market as the powers that be have a come up with a strategy to deal with that issue. Relying on that to bring your pricing down is a poor strategy.
May 8, 2011 at 10:12 AM #693623ParticipantThe banks have already been able to cope with dribbling out defaults. The question is not whether there are still more foreclosures to come. We already know that there are alot of foreclosures and short sales still in the pipe, more then likely a few more years worth.
It should be painfully apparent that distress will not crash the market as the powers that be have a come up with a strategy to deal with that issue. Relying on that to bring your pricing down is a poor strategy.
May 8, 2011 at 10:12 AM #694229ParticipantThe banks have already been able to cope with dribbling out defaults. The question is not whether there are still more foreclosures to come. We already know that there are alot of foreclosures and short sales still in the pipe, more then likely a few more years worth.
It should be painfully apparent that distress will not crash the market as the powers that be have a come up with a strategy to deal with that issue. Relying on that to bring your pricing down is a poor strategy.
May 8, 2011 at 10:12 AM #694376ParticipantThe banks have already been able to cope with dribbling out defaults. The question is not whether there are still more foreclosures to come. We already know that there are alot of foreclosures and short sales still in the pipe, more then likely a few more years worth.
It should be painfully apparent that distress will not crash the market as the powers that be have a come up with a strategy to deal with that issue. Relying on that to bring your pricing down is a poor strategy.
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