Mortgage rates and the housing market

[Skatastrophy]

SF and Chicago are similar to the anecdotes above. SF has the challenge where the homes in my friend's price range sell immediately for all cash offers, Chicago keeps plugging away at 5%-10% price increases a year with continued low inventory on the north side. It's interesting to see the housing market softness in some regions.

[MU Fan in Connecticut]

My daughter and her husband gave up in Syracuse, NY and leased a townhouse for two years for the same reason as Chick, Jr. Every time they bid on a home, there were multiple, "above ask" bidders. And, the sellers were not allowing inspections by buyers.

Dgies, They probably are not allowing inspections because other bidders have "waived inspections", so what's the point.  When my brother and I sold my mom's house in the Valley (here in Connecticut) last year, of the 8 offers we received every single one of them included "waived inspections".

[dgies9156]

Interesting to hear that about the housing markets in Syracuse and Milwaukee.

And in many areas of Florida, people are bailing. Prices ran up way too quickly, and insurance is outrageous and sometimes impossible to get. In some Fla markets, sellers are panicking as houses (and especially condos) sit on the market for months.

I'm not sure people are bailing as much as new developments started in 2022 and 2023 are fully online and supply exceeds demand. That's a periodic and very cyclical Florida problem. As a consequence, prices here are much more volatile than in the Midwest and Northeast.

Give our state a chance and every square inch of the state will either have asphalt or a yard on it. Florida has been like that since Ponce de Leon landed up near Melbourne.

Condos down here are a different story. After the Sunrise condo collapse, our state legislature mandated engineering inspections for all condos of a certain size and age. The engineers identified enormous deferred maintenance throughout the state that the law requires be cleaned up. Until all that work gets done, the condo market will be depressed.

Put another way -- HOA boards sacrificed safety on the altar of low annual assessments. Now, boards are paying the piper.

On the waived inspection clause, the only way I'd EVER do that is to take an engineer or inspector through the home showing as I saw it. We did that twice and passed on one house and bought the other.

[warriorchick]

Dgies, They probably are not allowing inspections because other bidders have "waived inspections", so what's the point.  When my brother and I sold my mom's house in the Valley (here in Connecticut) last year, of the 8 offers we received every single one of them included "waived inspections".

In Chick Jr's case, they did not waive inspection, but they set a reasonably high amount of necessary repairs that may be discovered during the inspection that they were willing to absorb.

It helped that they had an absolutely amazing Realtor.  This guy and his wife has been involved in 3 transactions with our family and I cannot speak more highly of them, especially after our very disappointing experience with our Illinois Realtor.  If anyone needs an agent in the greater Milwaukee area, PM me.  I would be more than happy to refer them.

[MU82]

One thing that's become popular in Seattle is the sellers getting an inspection.

They identify areas that need work they can do before putting it on the market, which then will let them demand top dollar. And then they make ithe inspection available to potential buyers to show them, "See, our place is awesome; we've taken care of everything."

[dgies9156]

One thing that's become popular in Seattle is the sellers getting an inspection.

They identify areas that need work they can do before putting it on the market, which then will let them demand top dollar. And then they make ithe inspection available to potential buyers to show them, "See, our place is awesome; we've taken care of everything."

I'd have trouble as a buyer accepting a seller's inspection report. The scope of the review, the quality of the inspection and the willingness to find things that affect the value of the house all would be in question. Plus, I'm sure we would have to indemnify the seller and sign a non-reliance release for the inspector.

As a seller, the inspection can be a good idea to know the condition of your home before it goes on the market. That way, if buyers come back and nickel and dime the price, a rebuttal report can address their concerns.

The reason I suspect inspections have become so touchy is buyers using them to reduce an agreed-on sale price. We had a buyer on our home in Illinois who wanted $30,000 worth of concessions due to their perception of the condition of our home.  I basically told the seller that if he wanted a brand new house, he should spend the extra $150,000 and go to nearby Vernon Hills.

To make the issue go away, I told them through our attorney our best and final offer was $5,000 and if they didn't like it, go find a new house. When the commission-rabid Illinois real estate agents heard what we did, we had final agreement in less than five minutes.

Like Sister Chick, I was disappointed in the comparative service we received from our Illinois real estate agent versus those we used in Florida. The latter was far more service-oriented and stood with us through two transactions.

[MU82]

I'd have trouble as a buyer accepting a seller's inspection report. The scope of the review, the quality of the inspection and the willingness to find things that affect the value of the house all would be in question. Plus, I'm sure we would have to indemnify the seller and sign a non-reliance release for the inspector.

As a seller, the inspection can be a good idea to know the condition of your home before it goes on the market. That way, if buyers come back and nickel and dime the price, a rebuttal report can address their concerns.

The reason I suspect inspections have become so touchy is buyers using them to reduce an agreed-on sale price. We had a buyer on our home in Illinois who wanted $30,000 worth of concessions due to their perception of the condition of our home.  I basically told the seller that if he wanted a brand new house, he should spend the extra $150,000 and go to nearby Vernon Hills.

To make the issue go away, I told them through our attorney our best and final offer was $5,000 and if they didn't like it, go find a new house. When the commission-rabid Illinois real estate agents heard what we did, we had final agreement in less than five minutes.

Like Sister Chick, I was disappointed in the comparative service we received from our Illinois real estate agent versus those we used in Florida. The latter was far more service-oriented and stood with us through two transactions.

We've only gotten even semi-serious about two houses so far here, and both owners had inspections done by very reputable companies. My daughter is in the mortgage industry, and she said she knew the inspection companies well and definitely trusted them. But failing such reassurance, I'd share your concern.

Still, that inspection done by any inspector would be far better than simply waiving an inspection, as many buyers must do in some hot markets.

When we sold our Charlotte house, the buyers not only paid for an overall home inspection but also had two systems inspected by specialists in those industries (HVAC and electric). We thought that was going overboard, but it was their money and we knew our systems were fine.

Given how persnickety the buyers seemed to be, we thought for sure they would present a list of items that needed work and would ask us for several thousand bucks. To our surprise - and delight - the buyers didn't ask for a single, solitary cent. Our realtor said it was the first time in her career that buyers on a house she sold didn't ask for something. So we lucked out there!

[warriorchick]

The bad part about the seller getting an inspection is that they have to disclose everything their inspector finds. If there is something wrong with my house that I don't already know about, let the buyer's inspector find it.

And buyers need to be reasonable regarding the results of the inspection. The buyer of our Illinois house found a few mouse poops in our crawl space and wanted a concession because of our "rodent problem".

[cheebs09]

And buyers need to be reasonable regarding the results of the inspection. The buyer of our Illinois house found a few mouse poops in our crawl space and wanted a concession because of our "rodent problem".

We tried to do the same thing when we saw Badger paraphernalia in the house we bought.

[MU82]

U.S. Homes Are Not Selling, and Prices Continue to Rise

June, usually the height of the spring housing season, saw sales of existing homes drop from the previous month, according to the National Association of Realtors.

https://www.nytimes.com/2025/07/23/realestate/home-sales-drop-prices-rise.html

U.S. home prices hit another record high in June, even as buyers backed out of deals and stood on the sidelines. This should be the busiest time of year, but the housing market remains frozen in place and sales are down.

Last month, sales of existing homes dropped by 2.7 percent from the previous month, while the median home price, at $435,300, hit a record high for the month of June, according to the National Association of Realtors.

June is supposed to be the height of the spring housing season, the time of year when Americans move before their attention shifts to summer vacations, the next school year and the winter holidays. Sales typically pick up again in the fall, but not enough to compensate for a lackluster spring. And this spring has been anything but active. In a sign that buyers are skittish about making a large purchase in an uncertain economy, about 15 percent of June deals fell apart, the highest level for the month of June on record, according to Redfin.

"What it really comes down to, as always, is affordability," said Daryl Fairweather, the chief economist at Redfin. Buyers, she said, "just don't feel like they can afford to buy a home at these prices."

This disconnect between home prices and home sales has defined the last three years of the housing market, and kept it in a doom loop. June was the 24th straight month of year-over-year price growth in the United States, yet regions like the Northeast saw the number of sales plummet by 8 percent in June from the previous month, according to N.A.R. These conditions are the result of a combination of a lack of available homes to buy and stubbornly high mortgage rates, creating an affordability crisis for millions of Americans who have been all but shut out of the housing market for three years.

[The Sultan]

I think prices are so high because people are mortgaged to the hilt and they can't afford to sell for less. My guess is that a lot of the homes on the market were purchased during COVID when houses were selling for that price and interest rates were low.

[Shaka Shart]

I think prices are so high because people are mortgaged to the hilt and they can't afford to sell for less. My guess is that a lot of the homes on the market were purchased during COVID when houses were selling for that price and interest rates were low.

People should try picking up a side hustle like bagging groceries to pay their mortgage

[Uncle Rico]

People should try picking up a side hustle like bagging groceries to pay their mortgage

Farmers need help if they can't wait for all the factory jobs to come back

[Jay Bee]

People should try picking up a side hustle like bagging groceries to pay their mortgage

Us hardworking Americans don't shop at places who offer grocery bagging services, Mr. Fancy Pants.

[The Sultan]

Us hardworking Americans don't shop at places who offer grocery bagging services, Mr. Fancy Pants.

I grow my own food because any food bought at the store causes bowel cancer.

[Jay Bee]

I grow my own food because any food bought at the store causes bowel cancer.

I may be the opposite. I love food bought at the store because it causes crazy dumps, which I record and send to my friends.

[The Sultan]

I may be the opposite. I love food bought at the store because it causes crazy dumps, which I record and send to my friends.

Haha..."friends." Good one.

[Jay Bee]

Haha..."friends." Good one.

Only takes a lil bit of $$$ yo

[21Jumpstreet]

I'm not sure people are bailing as much as new developments started in 2022 and 2023 are fully online and supply exceeds demand. That's a periodic and very cyclical Florida problem. As a consequence, prices here are much more volatile than in the Midwest and Northeast.

Give our state a chance and every square inch of the state will either have asphalt or a yard on it. Florida has been like that since Ponce de Leon landed up near Melbourne.

Condos down here are a different story. After the Sunrise condo collapse, our state legislature mandated engineering inspections for all condos of a certain size and age. The engineers identified enormous deferred maintenance throughout the state that the law requires be cleaned up. Until all that work gets done, the condo market will be depressed.

Put another way -- HOA boards sacrificed safety on the altar of low annual assessments. Now, boards are paying the piper.

On the waived inspection clause, the only way I'd EVER do that is to take an engineer or inspector through the home showing as I saw it. We did that twice and passed on one house and bought the other.

Just got our offer accepted on a second New Smyrna Beach property, this time a single family home (we currently have an oceanfront condo). Absolutely having an inspection, would never buy a home without one. Homes have been sitting longer here, prices have been coming down, we bought in the area we wanted, it was a pocket listing, I think we paid a pretty fair price, and I think NSB home values will continue to appreciate. So much more money is coming in, and the number beachside/island homes will always be limited. We shall see.

[MU Fan in Connecticut]

Just got our offer accepted on a second New Smyrna Beach property, this time a single family home (we currently have an oceanfront condo). Absolutely having an inspection, would never buy a home without one. Homes have been sitting longer here, prices have been coming down, we bought in the area we wanted, it was a pocket listing, I think we paid a pretty fair price, and I think NSB home values will continue to appreciate. So much more money is coming in, and the number beachside/island homes will always be limited. We shall see.

My long time childhood neighbors, here in Connecticut, have had a second home/condo in New Smyrna Beach for the last 30 years.  It's on the water and all they've said is the ocean has been creeping noticeably closer over that time span.

[MU82]

My long time childhood neighbors, here in Connecticut, have had a second home/condo in New Smyrna Beach for the last 30 years.  It's on the water and all they've said is the ocean has been creeping noticeably closer over that time span.

That's a very un-American thing to say, not to mention a HOAX!

[21Jumpstreet]

My long time childhood neighbors, here in Connecticut, have had a second home/condo in New Smyrna Beach for the last 30 years.  It's on the water and all they've said is the ocean has been creeping noticeably closer over that time span.

I've seen it creep a little bit where I am over the last twenty years visiting and living here, but I did choose to purchase a home a couple blocks in from the ocean. Ocean level, tides, and condo fees will make a person rethink.

On a side water note, I flew into WI from MN earlier today and was super panicked about water in my home. Thankfully the basement was dry, but man there is a ton of water everywhere. The sump is sumpin'. It is shocking. Just got back to the ocean, I do love the sound of that water.

[MU82]

BofA Global Research came out this week stating it expects little change in mortgage rates even if the Fed reduces the funds rate multiple times later this year.

They project the average 30-Year mortgage rate staying in the 6.5%-7.0% range at least through 2026.

The report also said that housing affordability has fallen by 28% since December 2021, just before the central bank embarked on an aggressive round of monetary-policy tightening.

https://institute.bankofamerica.com/content/dam/economic-insights/growing-debt.pdf#:~:text=Global%20Research%20expects%20little%20change%20in%20mortgage%20rates%2C,be%20with%20us%20for%20some%20time%20to%20come.

[Scoop Snoop]

I've seen it creep a little bit where I am over the last twenty years visiting and living here, but I did choose to purchase a home a couple blocks in from the ocean. Ocean level, tides, and condo fees will make a person rethink.

On a side water note, I flew into WI from MN earlier today and was super panicked about water in my home. Thankfully the basement was dry, but man there is a ton of water everywhere. The sump is sumpin'. It is shocking. Just got back to the ocean, I do love the sound of that water.

Glad to hear that your house was not flooded 21. When I see news stories about people whose homes are lost due to flooding, wildfires, tornados etc. I always imagine my wife and I being in their position. Even if insurance fully covers the losses, the emotional and mental strains must be immense. I hope we never learn first hand.

[tower912]

You never know these days when you are going to have a 1000 year rain event.