Real Estate Question

[headcard]

Anyone with some real estate knowledge that can help me out on this one. In February I accepted a new job, in a new city, starting in July. Seemed like a no brainer at the time, bigger, better, more money, etc. but the the world went wacky. I will be moving in June. Selling my house will be a challenge, in this environment, obviously, but my question is on the other side.

Is this a good or bad time to be buying a home? What do you anticipate the buyers market to be like? Will home prices fall? Will interest rates stay this low or even go lower? Any help would be appreciated.

 

[Trumplestiltskin]

Anyone with some real estate knowledge that can help me out on this one. In February I accepted a new job. Seemed like a no brained at the time, bigger, better more money, etc. I will be moving in June. Selling my house will be a challenge in this environment, obviously, but my question is on the other side.

Is this a good or bad time to be buying a home? What do you anticipate the buyers market to be like? Will home prices fall? Will interest rates stay this low or even go lower? Any help would be appreciated.

Great time. What State cuz that can drive most of it

 

[headcard]

Great time. What State cuz that can drive most of it

That’s good to hear. I remember the recession in 08, people were talking about it being a bad time to buy a house because people took out loans and then home values dropped, or something like that. Does that sound right? Anyway, I’ll be in Kansas (KC suburbs). Thanks.

 

[JohnRossEwing]

Interest rates are crazy low, homes are dropping a bit in value and people selling homes are quick to lower their prices.

If you can hold off on purchasing until about mid-August when all the people freak out that they have not sold their home before school starts...you can get what you want for even cheaper.

 

[Dean Pope]

Is this a good or bad time to be buying a home? What do you anticipate the buyers market to be like? Will home prices fall? Will interest rates stay this low or even go lower? Any help would be appreciated.

#1- It depends on the confidence level you have in keeping your new job and not getting laid off due to the economy.
#2- How familiar are you with the area you are moving to?

Even in the best of times, I've heard people advise movers to rent a house to start with. Get the lay of the land. If all goes well with the new job, then you start looking to buy or build in the right neighborhood. And you will know the area & schools very well after living there for several months.

I doubt the Fed will raise interest rates any time soon, but inflation should be on everyone's radar with the massive stimulus package coming in to a previously healthy economy. No one knows for sure but I think it's more likely that mortgage rates will be lower or stay about the same next year.

 

[chicolby]

Some people will be more desperate to get out from their homes and more likely to accept low offers. But you indicated in your initial post that it works on both sides. You also will likely have to accept a lower price on your current home. Usually the only way these markets work out for buyers is if you’re going from a rental to ownership. Low interest rates can keep a market alive because more buyers can afford higher purchase prices. For now I’m not seeing massive reductions in prices for anything due to the virus, but I think discounts are coming across the board.

 

[GretnaShawn]

FWIW, a coworker just sold his house practically same day listed. If it were me, I’d try to sell immediately. Find other living arrangements until I left town. Then I would rent something short term in the new city.

You want to make sure you like the community your moving to and to make see where the heck everything is headed. It may be better to buy next year.

 

[Sinomatic]

The house I'm flipping right now, according to Zillow, went from 200k to 185k probably due to recent events. Plus you have low int. rates right now. It might not be the worst time.

If your job is steady and you've found something you REALLY like, like dream home category, then it might not be a bad time to buy.

If you plan on moving further up, upon opportunity a lot, I'd just rent. You might be able to get a lease signed for a 10 year period with the price locked if the owner is willing. That could be a sweet deal for you if you can negotiate the lock for the 10 year period.

And if its an office job, I'd look into a condo near the grocery and office and just bike it to work. That could save you a ton of money, especially if you have a gas guzzler.

Then when the housing market takes a real noticeable dump you're in position and ready to buy at a fire sale price.

 

[Trumplestiltskin]

That’s good to hear. I remember the recession in 08, people were talking about it being a bad time to buy a house because people took out loans and then home values dropped, or something like that. Does that sound right? Anyway, I’ll be in Kansas (KC suburbs). Thanks.

Depending on your credit score...buy now with 5% down and MI. MI has moved to Risk Based Pricing making it insanely cheap for high FICO borrowers. If values drop, you WANT to be upside down with all of your equity(cash NOT invested in house) in your pocket.

 

[litespeedhuskerfan]

Per the agent working with my gal pal who's home she said should bring $315-$320 pre China virus...prices holding mostly steady up to now, and homes are still selling...but is there anyone who really thinks that will continue?

 

[John_J_Rambo]

When there’s blood in the streets, buy land!

 

[Trumplestiltskin]

Per the agent working with my gal pal who's home she said should bring $315-$320 pre China virus...prices holding mostly steady up to now, and homes are still selling...but is there anyone who really thinks that will continue?

Depends on location. I'm in Denver Metro and been writing home loans here for 20 yr. We have AT LEAST another 10 yr run on the EASTERN Slope, based on where Rates will be and Developments in motion. If I were on the Western slope, it's a different outlook. Illinois still hasn't recovered from 2007...it's all location.

 

[huskerfan66]

FWIW, a coworker just sold his house practically same day listed. If it were me, I’d try to sell immediately. Find other living arrangements until I left town. Then I would rent something short term in the new city.

You want to make sure you like the community your moving to and to make see where the heck everything is headed. It may be better to buy next year.

I agree with gretnashawn. I wouldn't want to buy right away until you get familiar with the area and find out all there is to know about the area. People might say "this is where you want to live it's the growing area" you might decide something different. Paying rent sucks but might pay dividends Down the road

 

[SomedayHusker]

I’ve had my eye on the Omaha market for a few months in search of a rental property and waiting for some financing to come through. I’ve already noticed some houses pop up in neighborhoods I couldn’t previously afford. I expect it to drop at least a little more, and when it does I’m jumping in with both feet.

 

[Wasker77]

Anyone with some real estate knowledge that can help me out on this one. In February I accepted a new job, in a new city, starting in July. Seemed like a no brainer at the time, bigger, better, more money, etc. but the the world went wacky. I will be moving in June. Selling my house will be a challenge, in this environment, obviously, but my question is on the other side.

Is this a good or bad time to be buying a home? What do you anticipate the buyers market to be like? Will home prices fall? Will interest rates stay this low or even go lower? Any help would be appreciated.

Mortgage rates have been up and now. Talked to my mortgage rep this week and he has been able to lock it on a 30 year fix in the 3% range on some days, but on others it has been closer to 5%. He tells me he doesn't see them going higher than this. Work with a good mortgage person. Where I live it has been a great market for sellers. Too low of inventory, with new construction not meeting the demands for more housing (it's coming, but just not fast enough). Construction workers are considered essential in Washington so they are allowed to work. Covid 19 is going to have an effect on the market. I think how much is going to be hard to predict. I think inventory is still going to be low as sellers will be reluctant to put their house on the market during this time of self isolation. I think we will know a lot more after this thing breaks and people are back to normal. I think June will be probably too early to know anything.

If you were my client I would recommend that you put your house on the market as soon as possible. Then if you can find good rental property in the city you are moving to I would consider renting instead of buying to see what happens to the prices. I don't know where you are moving to, but in my area rental property is just about as hard to find as properties are to purchase. Good Luck

Just read where you are moving to the KC area. Does this area have rentals available? How is the real estate market there? Find a good realtor and work with them. They do not cost a buyer a penny. Ask around. It's not hard to find a good one. I often refer clients to realtors in different cities and haven't had a hard time finding a good agent in places like Phoenix, suburbia Washington DC, Las Vegas, Boise and Seattle so I would not think KC is any different. (The one I worked with in Vegas ended up being from Lexington, NE. Small world).

Correction: New Construction is not exempt from the governor's stay at home order so that has stopped as well. That will hurt. Don't worry, Pot shops are exempt so anyone who wants to get a buzz while staying at home can still buy their reefer.






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[Tahoe78]

Mortgage rates have been up and now. Talked to my mortgage rep this week and he has been able to lock it on a 30 year fix in the 3% range on some days, but on others it has been closer to 5%. He tells me he doesn't see them going higher than this. Work with a good mortgage person. Where I live it has been a great market for sellers. Too low of inventory, with new construction not meeting the demands for more housing (it's coming, but just not fast enough). Construction works are considered essential in Washington so they allowed to work. Covid 19 is going to have an effect on the market. I think how much is going to be hard to predict. I think inventory is still going to be low as sellers will be reluctant to put their house on the market during this time of self isolation. I think we will know a lot more after this thing breaks and people are back to normal. I think June will be probably too early to know anything.

If you were my client I would recommend that you put your house on the market as soon as possible. Then if you can find good rental property in the city you are moving to I would consider renting instead of buying to see what happens to the prices. I don't know where you are moving to, but in my area rental property is just about as hard to find as properties are to purchase. Good Luck

Just read where you are moving to the KC area. Does this area have rentals available? How is the real estate market there? Find a good realtor and work with them. They do not cost a buyer a penny. Ask around. It's not hard to find a good one. I often refer clients to realtors in different cities and haven't had a hard time finding a good agent in places like Phoenix, suburbia Washington DC, Las Vegas, Boise and Seattle so I would not think KC is any different. (The one I worked with in Vegas ended up being from Lexington, NE. Small world).






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Being a Realtor it looks like some solid advice on the RSS. I rented for 1 year in Colorado when I moved about 4 years ago. Patience enabled me to hit a home run.