House Market Today???

Question

We bought a house for 210K and wont be able to pull the payments in like 5 months cuz I'm having a baby and i won't work during that time. We got a 7.35% on our mortgage and heard that if we sell and buy another house right away we could get a 5.something percentage. The reason we don't want to keep this house is cuz of payments and it a lil fixer uper and we were thinking about fixing it, but we won't be able to have money for all the permits and stuff. So, we want a house that is NOT a fixer and is for a reasonable price, but should we buy now? Wait? Howz the house market? Thanks guys cuz my hubby and I are confused! :(

We're in Portland Oregon, sorry guys

Answer 1

In general the housing market stinks right now (if you are a seller). Prices, on average, are declining. There are many people who got in over their heads and are now drowning in debt and foreclosures are increasing which increases the amount of housing on the market, depressing prices.

I don't think anyone is getting 5. something on their mortgages any more. In addition, you will need great credit to get an attractive rate. Because foreclosures are increasing, banks have lost their appetite for risk and therefore you need great credit to get anything reasonable.

Moving (selling your house) will cost you about 7-8% of whatever you can sell it for (real estate commissions and other closing costs). You will need to speak with a realtor and find out what a reasonable expectation is for your home. With a lot of inventory on the market, most people aren't going to want a fixer upper or they are really going to want a price break on it.

Now, with all that said, there are still areas of the country that are 'hot' and prices are increasing. Hopefully you live in one of those and getting rid of your old place won't be a hassle!

good luck!

Answer 2

It really depends on where you are as to how the market is. It is slow in a lot of places but in others still quite good. Even in the slow areas, starter homes still move well. As far as the interest rate is concerned, the 7.35% rate you have is quite high. When did you get it? Unless you have a credit score in the upper 600s to low 700s, I doubt you will find a rate in the 5s but low 6s is pretty common.

How much did you put down when you bought the house and how much have you paid towd the principal? That determines the equity you have in the house. If you didn't pay anything down, bought at fair market value, haven't paid but a couple years (thus very little on the principal) and haven't had it long enough for the market to appreciate enough then you may not be able to sell it for enough to pay off the loan, pay Realtor's commissions and other closing costs and make a down payment on another one.

I would suggest talking to a Realtor to get a CMA for he property so you know roughly what you could net out of it. Although it's a buyers market right now, if you're selling and buying, you should come close to washing on what you spend. You won't get quite what your home may be worth but also won't have to pay as much for the one you buy.

Answer 3

This is a great time to buy if you are moving up or buying a first time home, but it is not so great if you are trying to downsize. Rates are more favorable now than they were a while back and the Fed is likely to drop the prime rate again, which will have a ripple affect on some types of mortgages.

Check with a loan officer and a REATLOR® for specific advice. But basically home prices are down and mortgage rates are low so it is a good time for many - depends on your situation and location.

Answer 4

Depends on where you live, but generally it's a buyer's market. You' won't be able to sell for what you paid for it. Talk to a Realtor.

Answer 5

Yes it is a buyers market, great time to buy.