Housing market

[Laurenspencer]

I wanted opinions on what you think the housing market is going to do in NWA. If you would buy or wait in this market . Do you think it will go down or continue to go up ? In my lifetime I have never seen prices like this in NWA . It saddens me for people who can not afford to buy or single moms who have to continue to rent . The prices our out of control IMO .

[j912x2]

I think it will tank and prices will drop alittle bit, it did in 09

[drive10]

With fed. Raising interest rates home loans is supost to be around 6%. I seen this when jimmy carter was president. Interest when up home values and home sales tanked. Then all of sudden people owed more than it was worth. Couldn’t sell it . Couldn’t give it away. If buying wait. If selling do it. When Carter was in control interest was double digit ,unemployment was double digit. Biden is doing exactly what Carter did. Hang on it’s going to get worse before getting better. Sorry my opinion

[j912x2]

My 1st house i bought in 85, i had a 12.5% interest rate

[Rollypolly]

I think it goin to stay firm for a bit with the current climate of the area on the rise. It also depends on area. NWA is going and alot of older houses are getting bought up to be restored or replaced.

[CatMan4u]

My two cents
As a older man i never rented the houseing market around the mid west will stay good due to the mass exit of the west coast my only suggestion is be careful not to take on to big of a mortgage payment because of our current leadership s failed policy's inflation is a long ways off from being under control
Everyone knows gas has more than doubled in the last two years

[CPT Savajo]

Good question. Prices are out of control and we must thank the Fed. I think it depends where you want to buy in NWA such as within city limits or outside city limits and how much of a down payment you're willing to put down on a mortgage. If you're willing to pay a sizeable down payment I would negotiate and fight for every percentage point in this environment in which to finance a mortgage. The stock market hasn't crashed yet and the problems from the last crash of 08-09 never got fixed, the problems have only been exacerbated and grossly inflated, especially during the pandemic to where we are now. Personally I would wait to buy a home until after the stock market crashes hard and home prices fall by at least 15%-20%. During that time I would be saving cash for a down payment on a home once the dust settles, however interest rates to finance a mortgage could be higher at that point if Mr. Powell continues to raise rates which I believe he will. Whenever this next crash occurs it'll be worse than 08-09 because of the high inflation they've caused. People are being left behind in this economy and if we get dragged into war in Europe it'll only make things much more difficult as they've clearly voiced that they do not want peace. In the near term future I pray that we don't see a competing world reserve currency next to the USD, as holders of USD's will become much poorer if that happens.

[CatMan4u]

Food for thought
The price of housing has increased by at least 60$ a square ft so that means a 2000 sq ft house costs 120.000$ more
At 5$ per thousand borrowed your payment just went up 600$per mouth for the life of the loan now add extra taxes and insurance costs even at a 3% rate that still adds a lot of cost

Most people are getting buried in debt or simply being unable to buy

[aloysius.x]

I'd say what CPT said. Interest rates are back around 6% again on a 30 year, and I'd bet the FED will raise them yet again by EOY. 6% isn't bad, beats the %12 we've seen before but does cut into price ranges people are needing.

I'll put it this way. When I bough my place I paid $150K (my limit on what I could afford at the time) in late 90's on a 30 year @ %6.25 so about 1200/month. Then in 08 when it crashed, I did a refi at %2.25 (basically the same as the original host cost of $150k to cover closing, home improvements) on a 15 year and the mortgage was still about $1300. Paid extra and now I'm free from a mortgage and stashing cash and investing. I've been getting cold call offers for ~$450K for my place now and that's outrageous. I just don't see the value and I own the place. Yes, it's been constantly remodeled but I know the ROI on some of it is going to be less than what I paid.

BTW, did you know that the origin for "Mortgage" means death pledge?!

Cost of goods is cutting into budgets as well.

We all should get very comfortable with fewer choices and higher costs. I'm not their biggest fan of Wall Street Journal but I read the hell out of the financials. Think about the costs of proteins today, stupid expensive, right? The beef going to market in the future has not yet hit the inflation racket as the costs are still being incurred for raising them.

It's the same for most of your every day products. Landed costs for products overseas have yet to hit the market.

I'd say it's going to get uglier before it gets better. Hold off on high dollar purchases.

That's my .02 and you all stay safe and save a buck or two when and where you can.

Best of luck to us all.

-A

[Post apocalyptic lvr]

Bank of America predicts the Dow will be down to 6000 in a couple of months, sure hope they are wrong.

[aloysius.x]

Originally Posted by Post apocalyptic lvr

Bank of America predicts the Dow will be down to 6000 in a couple of months, sure hope they are wrong.

Damn, down from 30k!? That's circa mid-90's kinda range. Where ever you read/seen that, point me to it, I'd like to see it.

IDK, my dude. That's world wide rage stuff that would be going on if it hits that number again. Imagine you were worth $1MM when the Dow was at about 35K and then it hits 6K, about 83% drop. You'd be only worth abut 150K now. Still more wealth and most but imagine what that would do to the world.

Hope I go out on the first round of ICBM salvos is all I can say.

[Post apocalyptic lvr]

I can't remember where I was scrolling, last week but it had a major player in the bitcoin market saying the same thing.Hope it is bogus.

[Laurenspencer]

Its definitely very different and inserting times . This is the first time in my life that I have experienced inflation and interest rates rising . Which I think they said they will raise two more times before the end of the year . I love to invest and Im trying to make sure I do everything at the right time , housing market and stock market .
Does anyone day trade ?

[scribe479]

I think in general drive10 is right.

However, I also think NWA may be a little resistant to the national trends. We have a lot of relocation of talent from the coasts coming to participate in the "little silicone valley" that is happening in Bentonville. That's going to buoy the prices somewhat.

I bought my current in 21 and nearly cashed out last month when my neighbor sold his house for a price per sqft which would have netted me a 100k profit had I sold at the same rate. (and my house is significantly nicer, so it would likely have been even more) I just like my house and my mortgage rate is basically zero, so I didn't want to.

I think it depends on what you plan to do. If you are buying a lifer, then locking in the interest rate while it's still low might be better than getting a lower price but a high rate. But what do I know? I write for a living lol.

[tuckahoe]

There are a lot of very interesting comments in this thread. I don't know about NWA in particular, but people moving there from the Left Coast and other places is not good for the culture.
I just don't think it is a good time to buy in general when prices are at all time highs.
There is also a movement to eliminate private ownership of homes. Huge investment funds such as BlackRock are buying houses like crazy, even to the point of paying more than the asking price just to get control of them. There is a video on youtub that is an interview with the CEO of BlackRock. His beliefs ar plumb scary!
I also see that 'consumers' have demanded too much square feet and demanded too many 'nice' features in the houses they purchase. Consequently they have take on mortages they many never be able to pay off. Also there are lots of mortage schemes that can change your payment significantly. Not many old style mortages that were once so common. Financial institutions want to have you by the gonads!
For a while, I was seeing stories of Wells Fargo (that evil Jamie Dimon creature), and other big banks foreclosing on houses, and even if the owner's situation changed so they could once again make payments, they would not stop the foreclosure.
The more a person can pay down and if you can pay off the loan early, the better off you are.
We are likely about to enter a period of history where things are going to be far crazier than most people expect. War is likely, the dollar is losing its dominance of financial markets, inflation is happening, If people are unable to spend, NWA could take a big hit. So far, people still have enough money they are not altering lifestyles very much, and a lot of people still have large incomes. All that could change pretty quickly. We could be headed into a big Depression. People don't want to believe it can happen here.
As for day trading, don't.
Sorry if that doesn't help answer your questions very well. No one knows for sure what is going to happen. We have to prepare as best we can.