Spring Buying Season

[an]

The house DWCAP just posted can probably rent for around $1700/month if it’s in livable condition. @ $300k w/ 6% interest rate and 0% down, you’re looking @ P+I = $1800/month.

Then there’s this one: Linky. @ $335k w/ 6% interest rate and 0% down, you’re looking @ P+I = $2000/month. This one more upgraded w/ granite and new cabinets. It can probably rent for around $1800/month. So yes, they’re pretty close to each other. If you have great credit, right now, you can probably get around 5% w/ some points. Since you can’t get 100% financing anymore, if you put 20% down, your mortgage would be $1440/month for the first house and $1600/month for the 2nd house.

Do you see where I’m going w/ this? By no mean would I buy these houses(personal preference), but it’s getting to a point where Realtor can claim it’s cheaper to buy than rent (w/out using ARM or exotic loans) and J6pk will believe it.

[Eugene]

You may remember that in mid-January average conforming rates dipped below 5.5% and briefly fell as low as 5.2%. Everyone who managed to lock in those rates is rushing to buy right now. Thus a bump in pendings and closings. Not a spring bounce, but rather a low-rate bounce.

[Eugene]

You may remember that in mid-January average conforming rates dipped below 5.5% and briefly fell as low as 5.2%. Everyone who managed to lock in those rates is rushing to buy right now. Thus a bump in pendings and closings. Not a spring bounce, but rather a low-rate bounce.

[Eugene]

You may remember that in mid-January average conforming rates dipped below 5.5% and briefly fell as low as 5.2%. Everyone who managed to lock in those rates is rushing to buy right now. Thus a bump in pendings and closings. Not a spring bounce, but rather a low-rate bounce.

[Eugene]

You may remember that in mid-January average conforming rates dipped below 5.5% and briefly fell as low as 5.2%. Everyone who managed to lock in those rates is rushing to buy right now. Thus a bump in pendings and closings. Not a spring bounce, but rather a low-rate bounce.

[Eugene]

You may remember that in mid-January average conforming rates dipped below 5.5% and briefly fell as low as 5.2%. Everyone who managed to lock in those rates is rushing to buy right now. Thus a bump in pendings and closings. Not a spring bounce, but rather a low-rate bounce.

[an]

Back around Jan 23rd, 10 T-Bill dropped to around 3.28, a few weeks ago, we dipped to 3.28 again and now bounced to 3.50. Rates right now shouldn’t be that far off compare to the low of mid January. Which is why I don’t think it’s the cause for the spike in demand/pending.

[an]

Back around Jan 23rd, 10 T-Bill dropped to around 3.28, a few weeks ago, we dipped to 3.28 again and now bounced to 3.50. Rates right now shouldn’t be that far off compare to the low of mid January. Which is why I don’t think it’s the cause for the spike in demand/pending.

[an]

Back around Jan 23rd, 10 T-Bill dropped to around 3.28, a few weeks ago, we dipped to 3.28 again and now bounced to 3.50. Rates right now shouldn’t be that far off compare to the low of mid January. Which is why I don’t think it’s the cause for the spike in demand/pending.

[an]

Back around Jan 23rd, 10 T-Bill dropped to around 3.28, a few weeks ago, we dipped to 3.28 again and now bounced to 3.50. Rates right now shouldn’t be that far off compare to the low of mid January. Which is why I don’t think it’s the cause for the spike in demand/pending.

[an]

Back around Jan 23rd, 10 T-Bill dropped to around 3.28, a few weeks ago, we dipped to 3.28 again and now bounced to 3.50. Rates right now shouldn’t be that far off compare to the low of mid January. Which is why I don’t think it’s the cause for the spike in demand/pending.

[gn]

Asianautica, thanks for posting the house on 8470 Pallux Way.

With a 20% down payment, the total cost of ownership (mortgage + property tax + insurance – tax deduction) of this house is about the same as renting.

With that said, I think the following is going to occur:

1. Prices will go down a bit more & become attractive for investors to scoop them up.
2. The increase in the rental supply (b/c investors rent these houses out) will result lower rents.

#1 & #2 will repeat in a vicious cycle. I think the early investors will lose money because lower rents effectively create a new “floor” for prices.

The bottom for houses like the one on Pallux Way: $200k – $250k

[gn]

Asianautica, thanks for posting the house on 8470 Pallux Way.

With a 20% down payment, the total cost of ownership (mortgage + property tax + insurance – tax deduction) of this house is about the same as renting.

With that said, I think the following is going to occur:

1. Prices will go down a bit more & become attractive for investors to scoop them up.
2. The increase in the rental supply (b/c investors rent these houses out) will result lower rents.

#1 & #2 will repeat in a vicious cycle. I think the early investors will lose money because lower rents effectively create a new “floor” for prices.

The bottom for houses like the one on Pallux Way: $200k – $250k

[gn]

Asianautica, thanks for posting the house on 8470 Pallux Way.

With a 20% down payment, the total cost of ownership (mortgage + property tax + insurance – tax deduction) of this house is about the same as renting.

With that said, I think the following is going to occur:

1. Prices will go down a bit more & become attractive for investors to scoop them up.
2. The increase in the rental supply (b/c investors rent these houses out) will result lower rents.

#1 & #2 will repeat in a vicious cycle. I think the early investors will lose money because lower rents effectively create a new “floor” for prices.

The bottom for houses like the one on Pallux Way: $200k – $250k

[gn]

Asianautica, thanks for posting the house on 8470 Pallux Way.

With a 20% down payment, the total cost of ownership (mortgage + property tax + insurance – tax deduction) of this house is about the same as renting.

With that said, I think the following is going to occur:

1. Prices will go down a bit more & become attractive for investors to scoop them up.
2. The increase in the rental supply (b/c investors rent these houses out) will result lower rents.

#1 & #2 will repeat in a vicious cycle. I think the early investors will lose money because lower rents effectively create a new “floor” for prices.

The bottom for houses like the one on Pallux Way: $200k – $250k

[Author]

Posts