16 ms·

It is also slowing the seller market. We bought a house at 3% all in... and we're unlikely to sell.

• toomuchtodo 3y ago
  There are still motivated sellers out there, but the overall market velocity change is taking time (which should be expected, the benchmark rate must be held high for some time to bring about the desired asset deflation outcome). New construction will sell at the price that moves the sticks. They're a business without emotion, but a P&L and shareholders.
• Spivak 3y ago
  Yep, we're really stuck currently because 7% interest is a non-starter. It might as well be just be "you can't buy money right now." So we're not so much saving for a down payment as much as "we're saving to just buy a house outright." Doing the math and accounting for modest inflation it turns out that it's substantially cheaper over our lifetime to rent until we can afford to buy.
  • JAlexoid 3y ago
    Yep. If we were to refinance our home right now, we'd be paying an extra 1K per month just for the pleasure of it.
    • Spivak 3y ago
      Preach. We did that same math to see what it would look like if we bought our friends house they snagged when interest rates were low and it was a little over $1k more a month.
      • JAlexoid 3y ago
        We're not far from NYC. We're able to get a pied-à-terre in NYC for $1-2k, and pay both the mortgage and a small rental... at the same price as our old rental apartment (1br, now going for $5200). In fact, we'd probably be able to put the house on AirBnB for extra income, as our area lists AirBnBs for $300+ per night. There's really little reason for us to outright sell.