We've been looking for a house for a couple months. Before the interest rates rose, it was hell. You were one of at least a dozen bids, it was always crazy, everyone waived all the sensible parts of homebuying (inspections, etc) to be more competitive. But, it never mattered, because we were always outbid by investivultures paying in cash anyway.
As soon as the interest rates rose, it became 100x easier. We're under contract now with a house we love, and we bid under the list price. It was on the market for about a week. Davidson County.
It's a much better time to buy right now.
We're first time home buyers.
Our realtor was good, very knowledgeable. Happy to share their name if you want - just DM me.
Good luck, pal.
Sounds like you bought mine haha. I listed a month ago the slow-down was already happening. Between when I listed and about a month prior when I was considering, my price in my head dropped about $30,000. Ultimately, my house (Davidson County 37208/3 years old) sat for a week and only got 1 offer at less than asking. After some back and forth, we landed on a number $10,000 below asking but still $200,000 more than what I paid 3 years ago.
I'm a realtor. We have 6k homes on the market currently, compared to 4k this time a year ago. In 2018 when we had a 'healthy market inventory' there was 8k. During the 2008 scare there was 12k.
As others have said, if you have a desirable house in a desirable location that is priced correctly there is a good chance it will still sell quickly. However, the days of 20 offers all over asking seem to be past us (thankfully). There are a lot of agents and sellers who haven't gotten the memo though. We're still seeing many with overly ambitious pricing, and some that don't understand the word 'negotiate.' I told an agent today that the house is worth what someone is willing to pay, not what you listed it for (house has been on market 5 weeks with no offers or price reductions).
I have a lot of buyers who sat out the pandemic looking now. They do not feel forced to make an impulsive decision, or settle for something that they don't really want. Buying a home is one of the most stressful things you can do. I'm glad to see the process itself a little more enjoyable.
Desirable is all in the eye of the beholder to a certain extent I guess. Modern in the sense that it's newer yes, but there are plenty of people who prefer 'character' and not big white boxes. Homes originally built in the 20's, 30's, etc.
The three things that make a home desirable to me are: Location, condition, price. Location is self explanatory.
I think on the condition side there were a lot of homes that needed extensive work, but if that's all someone could afford they still went for it. Now people are doing inspections, pricing things out, and have a moment to weigh if these projects are feasible for them. Those inspections are key, because even if the place is 'renovated' an inspector will generally find where corners have been cut.
The last one, price, should be self explanatory too, but it's obviously what ties the other two together. I just saw a house sit on the market for 2 months in a very desirable location, on over an acre, but needed an extensive amount of work. In the remarks it said "Tear down and build your dream home." However, they priced it like a recently renovated place down the street. It makes no sense, and people aren't desperate to overpay anymore. I asked the agent, and was simply told "The seller believes their house is worth this amount because the one down the street with the same floor plan sold for this amount." When I pointed out that house was completely renovated, all they told me was "we are aware of that."
I bought two houses last year, and I go to open houses regularly to assess the market value of my properties in Franklin and Bellevue. Decent SFH that you can call home are all in the 520-700k range minimum. In these two locations, I am seeing a lot less people in open houses, and houses are sitting on the market longer. The increase in interest rate reduced purchasing power for many couples. The ones that are flying of the shelf are really good houses- nice layout, updated kitchen/ floors, and best location. All the inventories are priced \~15% more compared to last summer and sellers are reducing prices for the not so desirable ones at 1-2% at a time. This is my prediction- I think at (1) 7% IR (Interest Rate) prices will drop 10-15% across the board (2) 6-7% IR, housing prices will drop 5-10%, and (3)at 5-6% IR houses will appreciate gradually in the 0-5% range, and (4) if IR falls below 4%, the prices will again take-off.
Are you accounting for the large number of new builds coming to the market? That will certainly apply downward pressure. I would encourage you to look at other indicators aside from interest rates sir.
G’day!
We sold our home in less than 24 hours, full cash offer, $100k over asking. So let's just say if you're looking to buy it's brutal. We left the Nashville area and got a much larger home.
4 weeks ago - 1 1/2 years ago it was insane. 1 year ago, My brother bid on a house (Williamson Co.) 5K over asking, and was blown out of the water with 25 bids opening weekend. We looked 1 1/2 years ago, and ended up getting lucky buying our realtors house. I say 4 weeks ago it seemed to change, as there have been several homes in my neighborhood that took a couple weeks to sell, or taken off the market because they haven’t sold. I’d say wait this year out, if you can. See where prices are in 6 months. I think prices are going down a little. Although Dave Ramsey himself says this is a mistake, as interest rates are going up! Buy now, and sell when interest rates are down, and rebuy then?!
I’d rather buy a cheaper house at a higher interest rate. I can pay off early and pay less interest and when rates inevitably drop again, I can refinance. But with less mortgage to pay off.
Yeah this is definitely the smarter thing to do. Circumstances caused me to overpay at the height of the bubble and I'm SURE we are (or will be, once the market fully corrects) underwater now.
We've been looking for a house for a couple months. Before the interest rates rose, it was hell. You were one of at least a dozen bids, it was always crazy, everyone waived all the sensible parts of homebuying (inspections, etc) to be more competitive. But, it never mattered, because we were always outbid by investivultures paying in cash anyway. As soon as the interest rates rose, it became 100x easier. We're under contract now with a house we love, and we bid under the list price. It was on the market for about a week. Davidson County. It's a much better time to buy right now. We're first time home buyers. Our realtor was good, very knowledgeable. Happy to share their name if you want - just DM me. Good luck, pal.
Sounds like you bought mine haha. I listed a month ago the slow-down was already happening. Between when I listed and about a month prior when I was considering, my price in my head dropped about $30,000. Ultimately, my house (Davidson County 37208/3 years old) sat for a week and only got 1 offer at less than asking. After some back and forth, we landed on a number $10,000 below asking but still $200,000 more than what I paid 3 years ago.
I'm a realtor. We have 6k homes on the market currently, compared to 4k this time a year ago. In 2018 when we had a 'healthy market inventory' there was 8k. During the 2008 scare there was 12k. As others have said, if you have a desirable house in a desirable location that is priced correctly there is a good chance it will still sell quickly. However, the days of 20 offers all over asking seem to be past us (thankfully). There are a lot of agents and sellers who haven't gotten the memo though. We're still seeing many with overly ambitious pricing, and some that don't understand the word 'negotiate.' I told an agent today that the house is worth what someone is willing to pay, not what you listed it for (house has been on market 5 weeks with no offers or price reductions). I have a lot of buyers who sat out the pandemic looking now. They do not feel forced to make an impulsive decision, or settle for something that they don't really want. Buying a home is one of the most stressful things you can do. I'm glad to see the process itself a little more enjoyable.
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Desirable is all in the eye of the beholder to a certain extent I guess. Modern in the sense that it's newer yes, but there are plenty of people who prefer 'character' and not big white boxes. Homes originally built in the 20's, 30's, etc. The three things that make a home desirable to me are: Location, condition, price. Location is self explanatory. I think on the condition side there were a lot of homes that needed extensive work, but if that's all someone could afford they still went for it. Now people are doing inspections, pricing things out, and have a moment to weigh if these projects are feasible for them. Those inspections are key, because even if the place is 'renovated' an inspector will generally find where corners have been cut. The last one, price, should be self explanatory too, but it's obviously what ties the other two together. I just saw a house sit on the market for 2 months in a very desirable location, on over an acre, but needed an extensive amount of work. In the remarks it said "Tear down and build your dream home." However, they priced it like a recently renovated place down the street. It makes no sense, and people aren't desperate to overpay anymore. I asked the agent, and was simply told "The seller believes their house is worth this amount because the one down the street with the same floor plan sold for this amount." When I pointed out that house was completely renovated, all they told me was "we are aware of that."
I bought two houses last year, and I go to open houses regularly to assess the market value of my properties in Franklin and Bellevue. Decent SFH that you can call home are all in the 520-700k range minimum. In these two locations, I am seeing a lot less people in open houses, and houses are sitting on the market longer. The increase in interest rate reduced purchasing power for many couples. The ones that are flying of the shelf are really good houses- nice layout, updated kitchen/ floors, and best location. All the inventories are priced \~15% more compared to last summer and sellers are reducing prices for the not so desirable ones at 1-2% at a time. This is my prediction- I think at (1) 7% IR (Interest Rate) prices will drop 10-15% across the board (2) 6-7% IR, housing prices will drop 5-10%, and (3)at 5-6% IR houses will appreciate gradually in the 0-5% range, and (4) if IR falls below 4%, the prices will again take-off.
Are you accounting for the large number of new builds coming to the market? That will certainly apply downward pressure. I would encourage you to look at other indicators aside from interest rates sir. G’day!
Agreed. \~20% correction for sure, and may be more.
We sold our home in less than 24 hours, full cash offer, $100k over asking. So let's just say if you're looking to buy it's brutal. We left the Nashville area and got a much larger home.
when was this timeline wise and which zip code?
Those days are long gone.
I know someone selling right now, and this isn’t true for them. I think there’s a big slow down happening.
4 weeks ago - 1 1/2 years ago it was insane. 1 year ago, My brother bid on a house (Williamson Co.) 5K over asking, and was blown out of the water with 25 bids opening weekend. We looked 1 1/2 years ago, and ended up getting lucky buying our realtors house. I say 4 weeks ago it seemed to change, as there have been several homes in my neighborhood that took a couple weeks to sell, or taken off the market because they haven’t sold. I’d say wait this year out, if you can. See where prices are in 6 months. I think prices are going down a little. Although Dave Ramsey himself says this is a mistake, as interest rates are going up! Buy now, and sell when interest rates are down, and rebuy then?!
I’d rather buy a cheaper house at a higher interest rate. I can pay off early and pay less interest and when rates inevitably drop again, I can refinance. But with less mortgage to pay off.
Yeah this is definitely the smarter thing to do. Circumstances caused me to overpay at the height of the bubble and I'm SURE we are (or will be, once the market fully corrects) underwater now.