jikelly
Dirt-Old 20+Year Member
Anyone know what housing prices are like around Albuquerque? I think that is where I am going to move eventually.
http://realtor.com/FindHome/HomeLis...e=realtor&ct=Albuquerque&st=NM&sbint=&vtsort=jikelly said:Anyone know what housing prices are like around Albuquerque? I think that is where I am going to move eventually.
GNN60GT500 said:Another So Cal home owner here-
this is crazy- I had a condo- just made the leap and bought a house 6 months ago-
3 bed, 2.5 bath, built in 88, 2 car garage- 1550 sq feet- $615,000-
Leaving CA can get very tempting everytime I get my mortgage bill-
I never said you could buy a house for $140,000. I’m simply using round numbers to illustrate how dropping interest rates impact housing prices. In other words, an interest rate drop from 9% to 5.75%, results in a $40,000 increase in housing prices per $100,000 (appraisal at 9%). So a house that would sell for $200,000 at 9% will sell for $280,000 at 5.75% due to identical principle and interest payments.DarkBuddha said:That is both true and a lie. It's the kind of stuff that mortgage brokers and investors tout, but the reality is something else. You're right about lower interest rates can have a huge impact on monthly payment amounts, but saying you can buy a $140K house for $805 monthly is just crack-addict talk. Once you add home owners insurance (unless you can actually come up with the $28K plus realtor fees) and factor in your property taxes, you're more likely looking at closer to $1300-$1400 a month.
And what does $140K actually get you these days? The 3 places I'm most familiar with are Seattle, Central Florida, and South Florida. $140K in Seattle will get you an older 750 sqft. condo in Seattle proper, or an uninhabbitable 1 (maybe 2) bedroom pre-mid-century hovel in need of everything. Or you might be able to score a place in one of the rougher areas in south Seattle... the kind of place where you need a 6 foot chainlink fence, guard dogs, and bars on your windows.
Central and south Florida? You've got a better chance of finding an older home in a mediocre neighborhood, maybe 3 bedrooms 1 bath. New "starter" homes in Tampa and Ft. Lauderdale (and any surrounding suburbs for 30 miles) start from the "low $200K" area, which really means $240K on up, and the construction just plain frightens me.
My wife and I make decent coin (ok, I'm a student, but she makes decent coin as a nurse practitioner), but there ain't no way we can see being able to budget more than $1100/mo for rent/mortgage for a good while yet. What will $1100 get us? $120K home including homeowners insurance and property taxes. $120k just don't buy what it used to...
First, you're exactly right! Which is why I said it's true... I hope you didn't take offense at my little rant. I was just trying make the point that when investors and mortgage folks (i.e. people with "extra" money... personally I've never had "extra" money) talk about these numbers, they make these rate numbers sound so great, with their "you can buy $140k house for $840/mo" and all that. But when regular folks go to actually buy a house and realize they've gotta come up with a down payment, pay PMI and property tax, and 3%-5% in realtor commisions, then reality sets in. Don't have any equity? Payments go up. No down payment? Payments go up. Less than the "perfect" credit rating? Payments go up. Wrong income to debt ratio? Payments go up. Don't know the secret credit rating handshake? Payments go up. Etc., etc., etc.Platonic Solid said:I never said you could buy a house for $140,000. I’m simply using round numbers to illustrate how dropping interest rates impact housing prices. In other words, an interest rate drop from 9% to 5.75%, results in a $40,000 increase in housing prices per $100,000 (appraisal at 9%). So a house that would sell for $200,000 at 9% will sell for $280,000 at 5.75% due to identical principle and interest payments.
There are obviously many other factors that effect housing prices and monthly payments, which vary greatly with location. PMI, Property Taxes, Insurance, and basic supply and demand principles for your area.
What I was trying to get across in my previous post is that buying real-estate right now, during what may be the bottom of the down turn of interest rates, is very risky. It’s very easy to look back at the last 5 years in envy and say, “look at all the money people have been making in real-estate”, which is mostly attributable to falling interest rates. To make this scenario even scarier is that historically mortgage interest rates rise much quicker than they fall. Thus, the big profits made today from flipping houses (quick purchase and re-sale) can easily become huge losses. It’s gambling, and in a low interest rate market, the odds are against you.
DarkBuddha said:. Remember the early '80s?
It always hurts someone to get caught at those times, and as I recall, we were in a nasty recession then too.2nd Mustang said:Remember the very early 90's, like January 1990, when I sold my house (divorce issue) at a peak price, then bought a condo at the peak prices, then the housing prices took a big dump the following month.
I purchased my first house (no money down, 100%+ financed) in 1986 for $85,000. I remember the insanity at that time very well. The mood in the market was: "If you don't buy a house now, you'll never be able to". My housing debt to income ratio was over 50%! I was young and didn't know any better. I just wanted a home for my family and the banks made it possible. I assumed the banks wouldn't let me borrow that much if it wasn't realistic (WRONG!!). The primary cause of the real-estate crash in 1990 was bad lending practices. 4 Years later (1990)(also divorce issue) selling for anywhere near the purchase price was impossible. The house ended up in foreclosure and I ended up in bankruptcy. Personal bankruptcy as a result of defaulted real-estate loans sky-rocketed in the early 90s. Now the real-estate fever is back, and I believe the bankruptcy laws have changed.2nd Mustang said:Remember the very early 90's, like January 1990, when I sold my house (divorce issue) at a peak price, then bought a condo at the peak prices, then the housing prices took a big dump the following month.