dbnoho

dbnoho t1_ix10pyq wrote

Interesting question. Seemed to me that there was a final frenzy of inflated prices over the summer as people rushed to lock in rates they knew were going up.

The fed wants to crush the housing market so who is braving it to buy right now?

My mortgage would be 50% higher with current rates (bought in 2019). I can’t imagine someone paying nearly 2x (what it would be with the Redfin estimated price and current rates)

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dbnoho t1_ix102ek wrote

This logic is deeply flawed.

At this point a mortgage on a $1m house is >5k. Buying a $1m home will cost at least 7% ($70k) in transaction costs to buy and sell. Ignore that you need $200k down, cost of interest, opportunity cost of that money, maintenance, location considerations, etc. You’d still need to live in the house for years to even begin for it to makes sense vs renting.

Renting is not throwing your money away.

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