UT: County housing market strengthening

[Jim Jones]

Can anyone validate my statement below?

Rising interest rates will lower the sale price of the property at the same time lowering the applicable property taxes. Some of this gain will be lost to the increased costs of borrowing. Those with cash available can make large down payments on a house with a lower purchase price stand to gain not only from that but lower borrowing costs associated with a reduced loan amount. Higher interest rates will lower the pool of potential borrows as risk becomes more of a factor for the loan originator increasing the negotiating power of the buyer at the same time lowering demand for homes currently on the market placing further downward pressure on asking prices.

If this is true will rising interest rates convince the small number of responsible savers to enter the market?

[8bitnintendo]

[quote=Jim Jones]If this is true will rising interest rates convince the small number of responsible savers to enter the market?[/quote]That is certainly what I am waiting for, or at least the reduced prices I am presuming will result from higher interest rates.

[8bitnintendo]

[quote=Jim Jones]If this is true will rising interest rates convince the small number of responsible savers to enter the market?[/quote]That is certainly what I am waiting for, or at least the reduced prices I am presuming will result from higher interest rates.

[8bitnintendo]

[quote=Jim Jones]If this is true will rising interest rates convince the small number of responsible savers to enter the market?[/quote]That is certainly what I am waiting for, or at least the reduced prices I am presuming will result from higher interest rates.

[8bitnintendo]

[quote=Jim Jones]If this is true will rising interest rates convince the small number of responsible savers to enter the market?[/quote]That is certainly what I am waiting for, or at least the reduced prices I am presuming will result from higher interest rates.

[8bitnintendo]

[quote=Jim Jones]If this is true will rising interest rates convince the small number of responsible savers to enter the market?[/quote]That is certainly what I am waiting for, or at least the reduced prices I am presuming will result from higher interest rates.

[CA renter]

[quote=Jim Jones]Can anyone validate my statement below?

Rising interest rates will lower the sale price of the property at the same time lowering the applicable property taxes. Some of this gain will be lost to the increased costs of borrowing. Those with cash available can make large down payments on a house with a lower purchase price stand to gain not only from that but lower borrowing costs associated with a reduced loan amount. Higher interest rates will lower the pool of potential borrows as risk becomes more of a factor for the loan originator increasing the negotiating power of the buyer at the same time lowering demand for homes currently on the market placing further downward pressure on asking prices.

If this is true will rising interest rates convince the small number of responsible savers to enter the market?[/quote]

Yes. We’ve been hoping and praying for higher interest rates for years now, for the very reasons you and SDR mentioned above. Maybe someday we will get lucky. 🙂

[CA renter]

[quote=Jim Jones]Can anyone validate my statement below?

Rising interest rates will lower the sale price of the property at the same time lowering the applicable property taxes. Some of this gain will be lost to the increased costs of borrowing. Those with cash available can make large down payments on a house with a lower purchase price stand to gain not only from that but lower borrowing costs associated with a reduced loan amount. Higher interest rates will lower the pool of potential borrows as risk becomes more of a factor for the loan originator increasing the negotiating power of the buyer at the same time lowering demand for homes currently on the market placing further downward pressure on asking prices.

If this is true will rising interest rates convince the small number of responsible savers to enter the market?[/quote]

Yes. We’ve been hoping and praying for higher interest rates for years now, for the very reasons you and SDR mentioned above. Maybe someday we will get lucky. 🙂

[CA renter]

[quote=Jim Jones]Can anyone validate my statement below?

Rising interest rates will lower the sale price of the property at the same time lowering the applicable property taxes. Some of this gain will be lost to the increased costs of borrowing. Those with cash available can make large down payments on a house with a lower purchase price stand to gain not only from that but lower borrowing costs associated with a reduced loan amount. Higher interest rates will lower the pool of potential borrows as risk becomes more of a factor for the loan originator increasing the negotiating power of the buyer at the same time lowering demand for homes currently on the market placing further downward pressure on asking prices.

If this is true will rising interest rates convince the small number of responsible savers to enter the market?[/quote]

Yes. We’ve been hoping and praying for higher interest rates for years now, for the very reasons you and SDR mentioned above. Maybe someday we will get lucky. 🙂

[CA renter]

[quote=Jim Jones]Can anyone validate my statement below?

Rising interest rates will lower the sale price of the property at the same time lowering the applicable property taxes. Some of this gain will be lost to the increased costs of borrowing. Those with cash available can make large down payments on a house with a lower purchase price stand to gain not only from that but lower borrowing costs associated with a reduced loan amount. Higher interest rates will lower the pool of potential borrows as risk becomes more of a factor for the loan originator increasing the negotiating power of the buyer at the same time lowering demand for homes currently on the market placing further downward pressure on asking prices.

If this is true will rising interest rates convince the small number of responsible savers to enter the market?[/quote]

Yes. We’ve been hoping and praying for higher interest rates for years now, for the very reasons you and SDR mentioned above. Maybe someday we will get lucky. 🙂

[CA renter]

[quote=Jim Jones]Can anyone validate my statement below?

Rising interest rates will lower the sale price of the property at the same time lowering the applicable property taxes. Some of this gain will be lost to the increased costs of borrowing. Those with cash available can make large down payments on a house with a lower purchase price stand to gain not only from that but lower borrowing costs associated with a reduced loan amount. Higher interest rates will lower the pool of potential borrows as risk becomes more of a factor for the loan originator increasing the negotiating power of the buyer at the same time lowering demand for homes currently on the market placing further downward pressure on asking prices.

If this is true will rising interest rates convince the small number of responsible savers to enter the market?[/quote]

Yes. We’ve been hoping and praying for higher interest rates for years now, for the very reasons you and SDR mentioned above. Maybe someday we will get lucky. 🙂

[Nor-LA-SD-guy]

Even if you buy your home with the lower rates but higher price etc… your property taxes can usually be reduced (although the prop 13 level or whatever they call that will be higher so it will go up quicker when the prices rise in the future).

Also I would think the higher rates will have less effect on the lower end housing market than the mid-high end.

[Nor-LA-SD-guy]

Even if you buy your home with the lower rates but higher price etc… your property taxes can usually be reduced (although the prop 13 level or whatever they call that will be higher so it will go up quicker when the prices rise in the future).

Also I would think the higher rates will have less effect on the lower end housing market than the mid-high end.

[Nor-LA-SD-guy]

Even if you buy your home with the lower rates but higher price etc… your property taxes can usually be reduced (although the prop 13 level or whatever they call that will be higher so it will go up quicker when the prices rise in the future).

Also I would think the higher rates will have less effect on the lower end housing market than the mid-high end.

[Nor-LA-SD-guy]

Even if you buy your home with the lower rates but higher price etc… your property taxes can usually be reduced (although the prop 13 level or whatever they call that will be higher so it will go up quicker when the prices rise in the future).

Also I would think the higher rates will have less effect on the lower end housing market than the mid-high end.

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