Real Estate Market

[Spiderpig1776]

You will begin to see a shift in home sizes. There is still a shortage of houses but most families can’t afford 300-400k homes at 7plus %, not to mention the taxes. The market will adjust by adjusting the home sizes. Instead of 2600-3000 sq ft we will begin to see 1600-2000 sq ft homes be the norm again.

People can’t live in 1600square ft without killing each other. My gf and I are in the market for something different but we are going to watch and see how far can things slide down hill and hope we find someone in a bind that needs to sell.

[DUKFVR]

We have lived and raised 2 kids in a 1200 ft home for almost 40 yrs . Saved money through the years by doing it and now own a nice ranch with what we saved. It can be done, just have to decide what is more important!

[60 Deluxe]

I never had a mortgage under 8%, and we survived. Lots of folks had the opportunity to buy a lot of house when the interest rates were so low. That window of opportunity has closed. It is a market shock that will take a while for buyers to adjust to the new reality of what they can afford versus what their friends bought last year. It wouldn't bother me to see a price reduction of at least twenty-five percent. Property taxes need to come down and the only way for that to happen is for values to come down.

[lilbradford]

Demand and lack of supply of labor have driven prices up. Materials are coming back down. Finding good crews cost a lot right now. With interest rates climbing high a lack of demand on the short supply of labor will help ease prices.

Agreed. I was referring to sub April-May when we started to initially see the slow down. I think labor coming down is definitely what we see a lot more of now that crews are going to start running low on work.

[Rubberdown]

People can’t live in 1600square ft without killing each other. My gf and I are in the market for something different but we are going to watch and see how far can things slide down hill and hope we find someone in a bind that needs to sell.

I grew up in a 1600 square foot house with 4 people and a dog and two birds and some fish. It’s fine. People are spoiled as hell these days.

[Texas452]

We have lived and raised 2 kids in a 1200 ft home for almost 40 yrs . Saved money through the years by doing it and now own a nice ranch with what we saved. It can be done, just have to decide what is more important!

This right here.
We raised 3 boys in a smaller house than that.
Know we have 3 ranches and a house too big for me and the wife.
We worked hard and saved for a lot of years.
You have to be able to distinguish between a want and a need.

[Bill M]

I never had a mortgage under 8%, and we survived. Lots of folks had the opportunity to buy a lot of house when the interest rates were so low. That window of opportunity has closed. It is a market shock that will take a while for buyers to adjust to the new reality of what they can afford versus what their friends bought last year. It wouldn't bother me to see a price reduction of at least twenty-five percent. Property taxes need to come down and the only way for that to happen is for values to come down.

Very true, definitely sticker shock for some of the younger buyers. Our first house was 8 1/2 percent back in 1979 and we assumed that loan. That was a time when rates were in the mid teens and many folks started just walking away. We have gotten so use to lower rates that even 6 percent seems absurd.

As mentioned, if people want to buy they need to either wait to buy larger, downsize their expectations, or overbuy and get into a bind. My wife and I went up in size over our lives but now are on the downside again. We are currently in the process of building a 1400 sq ft house that can be paid for when complete. We sold during the summer at a time that was still profitable but slowed pretty quickly after that. There isn't a single template for how all the different markets reaction to the rising rates and pricing. Where we are building, the market is still strong and most are paying cash for their builds. Labor costs in the area thus far are remaining stable due to this fact. We went back and forth about buying on the ground but prices haven't dropped much where we want to live so building was our option. That is subject to change in the next year however though inventory still remains low.

Anyone contemplating a move should navigate carefully. Best of luck folks.

[Big pig]

We have lived and raised 2 kids in a 1200 ft home for almost 40 yrs . Saved money through the years by doing it and now own a nice ranch with what we saved. It can be done, just have to decide what is more important!

That’s the approach I used! My kids felt our small house in a great s/d was child abuse. Now they are out of college and debt free, I hope my “conservative” nature rubbed off.

BP

[bklem]

Yea my timing sucks. We have had two showings in first four weeks being on the market. Have reduced price once but not going lower. Will sit on it if we need to. That being said, we knew our house would take a unique buyer. Not lots of folks wanting/can afford a 4 bedroom 3100 sq ft with 5 acres in the country.

[ThisLadyHunts]

Not a huge supply of spec homes in my area, but there is an abundance of high density, multi-family building going on. As these fill up, the impact on traffic gets worse.

[miket]

People can’t live in 1600square ft without killing each other. My gf and I are in the market for something different but we are going to watch and see how far can things slide down hill and hope we find someone in a bind that needs to sell.

Meh, raised 4 kids in 1600sf house that I built myself for under $50k in 1999. But then again Im not the "keep up with the joneses" type

[Fused11C]

Houses with modest acreage Brewster Co aren’t budging. Plan on moving in June and prices haven’t dropped much if any at all.

[Easttxbowman]

You will begin to see a shift in home sizes. There is still a shortage of houses but most families can’t afford 300-400k homes at 7plus %, not to mention the taxes. The market will adjust by adjusting the home sizes. Instead of 2600-3000 sq ft we will begin to see 1600-2000 sq ft homes be the norm again.

Uhh, that the sized house being built around me and selling for your 300-400k asking. Granted they are staying on the market longer at this point.

One just up the road from me just sold. 3/2.5 @1900sqft on 1 acre. Sold for 350k. The only difference it has over mine is 100sqft in the half bath and 2years newer. 124k difference.

[Iowa1210]

Meh, raised 4 kids in 1600sf house that I built myself for under $50k in 1999. But then again Im not the "keep up with the joneses" type

In 1983 I signed a contract on a new house, and the interest rate started at 9.5 percent. Within 4 years it would have been set at 13.5 percent. That was the going rate during just before the end of the oil boom. I ended up cancelling the contract before moving in. I then assumed someone's mortgage at 5.5 percent.

Sent from my Pixel 5a using Tapatalk

[Passafist]

People can’t live in 1600square ft without killing each other. My gf and I are in the market for something different but we are going to watch and see how far can things slide down hill and hope we find someone in a bind that needs to sell.

Sorry but my wife and I have lived in a 980 sq ft bungalow for almost 30. It can be done.