MelissaInPhilly Posted October 9, 2004 Share Posted October 9, 2004 I am looking for a house -- probably a twin or a rowhouse. The median price for a home here is $168K, which is about my price range. Yet every time I tell my realtor I'm interested in a property, it's already been sold, sometimes in a matter of days My question is: can the economy really be as bad as the Democrats say when the housing market, at least here in the Philadelphia area, is still robust? Is housing a leading or lagging indicator? Also, I was preapproved for a loan at 5.75 percent. Is that a good rate, or should I shop around some more? Link to comment Share on other sites More sharing options...
Bob Lamb Posted October 9, 2004 Share Posted October 9, 2004 "My question is: can the economy really be as bad as the Democrats say when the housing market, at least here in the Philadelphia area, is still robust? Is housing a leading or lagging indicator?" Housing is always first based on location, location and then, location If properties are selling in days (hours here on the W. Coast) then the market is hot and it is not a matter of the overall economy Supply and demand rule - BUT Look before you leap and a "real" home inspection is an ABSOLUTE ! 5.75% is a good rate - any points though ? Link to comment Share on other sites More sharing options...
OGTEleven Posted October 9, 2004 Share Posted October 9, 2004 I am looking for a house -- probably a twin or a rowhouse. The median price for a home here is $168K, which is about my price range. Yet every time I tell my realtor I'm interested in a property, it's already been sold, sometimes in a matter of days My question is: can the economy really be as bad as the Democrats say when the housing market, at least here in the Philadelphia area, is still robust? Is housing a leading or lagging indicator? Also, I was preapproved for a loan at 5.75 percent. Is that a good rate, or should I shop around some more? 62489[/snapback] IMO, you've partially answered your own question. The housing market is up (at least to a degree) due to low interest rates. Also IMO the current "values" of homes are a bit dangerous. The consumer debt numbers in the US are not good. If people begin to default on home mortgages down the line somewhere due to mounting debt from other sources, the values will be sure to take a hit and there could be a downward spiral. I don't want to rain on your parade. It sounds like you've planned out a budget and can afford the new home. That is a great thing. It doesn't really make sense to wait until the market crashes until you buy your home. The market will have a large impact on what you pay. The best advice I can give is that you get a house you can picture yourself living in for a long while. The money is important, but the house is what you live in. Unfortunately, the current climate may mean you have to make a quick decision. Make it a good one. As for the mortgage, it is good you have a rate locked in. In most of those loans you can take advantage of rate drops if they come along. Keep your eyes open. I am not too up on the current rates, but they are always changing. Even a quarter point can make a difference. Link to comment Share on other sites More sharing options...
MelissaInPhilly Posted October 9, 2004 Author Share Posted October 9, 2004 "My question is: can the economy really be as bad as the Democrats say when the housing market, at least here in the Philadelphia area, is still robust? Is housing a leading or lagging indicator?" Housing is always first based on location, location and then, location If properties are selling in days (hours here on the W. Coast) then the market is hot and it is not a matter of the overall economy Supply and demand rule - BUT Look before you leap and a "real" home inspection is an ABSOLUTE ! 5.75% is a good rate - any points though ? 62496[/snapback] I'm not sure, I will have to check. Yes, location is important. My brother lives in San Diego and he says the housing prices are very high. Link to comment Share on other sites More sharing options...
Ray Posted October 9, 2004 Share Posted October 9, 2004 5.75 is a very good rate especially if no points. Here in Boston the housing market continues to skyrocket despite the so-called "bad" economy. I agree Melissa that if it is so bad then how come all the housing prices continue to rise. Someone is buying the homes and certainly not at a loss or a discount. Link to comment Share on other sites More sharing options...
DC Tom Posted October 9, 2004 Share Posted October 9, 2004 I am looking for a house -- probably a twin or a rowhouse. The median price for a home here is $168K, which is about my price range. Yet every time I tell my realtor I'm interested in a property, it's already been sold, sometimes in a matter of days My question is: can the economy really be as bad as the Democrats say when the housing market, at least here in the Philadelphia area, is still robust? Is housing a leading or lagging indicator? Also, I was preapproved for a loan at 5.75 percent. Is that a good rate, or should I shop around some more? 62489[/snapback] If you don't mind my asking...who's the rate with? Don't have to answer if you don't want, obviously...but the wife works in real estate (does closings, works closely with lenders), and I've heard horror stories about bad lenders. Link to comment Share on other sites More sharing options...
checkmate Posted October 9, 2004 Share Posted October 9, 2004 I can't say much about the housing market anywhere other than Columbia SC and St. Simons GA where I own property. In Columbia, 100% financing is why the entry-level market for new homes continues. That is a bit scary, as many may default on loans and banks stand to lose money. On St. Simons, property values accelerate exponentially, but it is a wealthy beach community to start and baby boomers are starting to retire to the beach. I think that market will begin to slow down, but don't think that can be considered any indication of how robust the economy is because we are talking about mainly retirement residents. Link to comment Share on other sites More sharing options...
blzrul Posted October 9, 2004 Share Posted October 9, 2004 In the Seattle area houses are sold in a matter of days, not weeks. Why? Because the supply is low. Up here there are strict ordinances in place to keep this area beautiful and help preserve the ecosystem. So, they don't bulldoze the trees to build more houses, they just let people fight over the existing supply or move into something way out and live through the commute from hell daily. The house I bought is worth $500k; I bought it for less than than in June. When I was in Texas I could have had it for half that price. And, the appreciation rate in this area is 12% YOY. I think Southern California's situation is even more pronounced. As mentioned earlier, go for location. There are stable areas where whatever you buy will hold its value. It may not appreciate as quickly but it won't lose in value over time. My sister had a house at the Jersey shore several years ago. Bought in the 80's during a boom, in the early 90's it was worth less than they owed on the mortgage. They held, and by the end of the 90's they sold it for twice what they paid for it, so it worked out. If you're buying a place so you'll own the property and are planning on staying there, then don't worry about it, you will probably come out ok in the long run if you choose wisely. But if you're looking to turn in around in a few years at a profit that could be risky. Assuming the 5.75 is a 30 year mortgage that's pretty good. Watch out for points and hidden fees and early payoff penalties. Link to comment Share on other sites More sharing options...
Albany,n.y. Posted October 9, 2004 Share Posted October 9, 2004 Yet every time I tell my realtor I'm interested in a property, it's already been sold, sometimes in a matter of days 62489[/snapback] Melissa, I have a question: Do you have an exclusive contract with your realtor to be your buyer's agent? The reason I'm asking is because what I've quoted you as saying indicates your realtor isn't doing a very good job. If the realtor is your buyer's agent he or she should be looking for homes for you the 1st day a home that fits your needs goes on the open market. If things are the same in Philly as they are around Albany, the agents are MLS (Multiple Listing Service) members & have access to the homes the 1st day they hit MLS. The rest of my recommendation assumes there's MLS in your area, if not sorry for wasting your time: The agent should be able to find houses faster than you, BEFORE they are sold. If the agent's office is actively listing the agent might get the inside track on a house going on the market before it hits MLS. If you are always the one to find the property you want to see, you need a new, more aggressive agent. If you are stuck with a contract, demand the agent notify you immediately when a house is on MLS that fits your needs, if not go to whoever runs the office & demand some quality service. Obviously somebody is getting to these homes & buying them, so their agents must be doing something right. Also if you think you are being descriminated against for any reason, threaten to report them to the board of realtors & then do it. Link to comment Share on other sites More sharing options...
Rich in Ohio Posted October 9, 2004 Share Posted October 9, 2004 I am looking for a house -- probably a twin or a rowhouse. The median price for a home here is $168K, which is about my price range. Yet every time I tell my realtor I'm interested in a property, it's already been sold, sometimes in a matter of days My question is: can the economy really be as bad as the Democrats say when the housing market, at least here in the Philadelphia area, is still robust? Is housing a leading or lagging indicator? Also, I was preapproved for a loan at 5.75 percent. Is that a good rate, or should I shop around some more? 62489[/snapback] I have no doubt that you will hear all manners of excuses in response to your question. However, you really need to look no further then your own questions to answer the question. The economy is in good shape, This housing market is robust and by the way it has been for well over two years. Home owneship is at an all time high. These things do not take place if people are worried about thier job situation. More people are employed right now in America then at any time in our nations history. That is an amazing stat....yet the dems want to make us feel bad. Unemployment is at a n historically low rate, lower then the average of the past three decades. What is wrong with this....the dems, want us to feel bad. Look even if you remove all politics form your question,.......commonsense takes over. Demand is HIGH and supply is LOW......this is always a good situation, and is a reflection of where we are in this economy. Link to comment Share on other sites More sharing options...
Berg Posted October 9, 2004 Share Posted October 9, 2004 Checkout the Mortgage Professor. The site has a lot of great advice for both home buying and mortgage shopping. Link to comment Share on other sites More sharing options...
IUBillsFan Posted October 9, 2004 Share Posted October 9, 2004 Also, I was preapproved for a loan at 5.75 percent. Is that a good rate, or should I shop around some more? 62489[/snapback] 5.75 is good but look at the good faith estimate to check costs. Also if you plan on being there for 5 years or less you MAY want to look at a 3/1 or 5/1 ARM, keeps your payment down and you build equity faster... If you have any general loan questions feel free to email me rkbza@yahoo.com I close loans and also invest in property so I know a little. Link to comment Share on other sites More sharing options...
Paco Posted October 9, 2004 Share Posted October 9, 2004 Melissa, When I decided to buy a house four years ago, I turned to this book. The best part about it is you can just find the chapters that you are interested in at the time. Very simple to follow and understand, with a lot of input from realtors, lenders, etc. It walked me through a lot of tough questions in a very simple format and I was able to get the absolute best deal with great confidence. It is worth every penny, and comes highly recommended in the real estate world. Do not get frustrated with people getting offers in before you. Just be patient. And read this book. Link to comment Share on other sites More sharing options...
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