Love the video. From my point of view, just buy a piece of land and construct a custom made house or a prefab house but don't wait too long due to prices surging to the roof. Lower expenses as much as possible especially with the housing market.
I bought my condo in West Seattle in "yesterday" market - March 2022. So we've got a great interest rate, but had to outbid folks and lose multiple offers before landing our place. I think you're right when you say that the best time to buy a house is when you're ready and buy within your means. I was super stressed by all the bidding wars and waiving our contingencies at the time, but I am glad our monthly payment is well within our means.
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Really impressive to see you talking so confident about real estate… you really owned the topic and it is interesting to hear you talking about such a ‘grown up’ topic! Massive congrats! One can tell you have learned a lot in the past years.
Your real estate videos make me feel like I can actually understand what the heck goes into buying a house. Please keep making these types of videos!! 😊
This is the most helpful, comprehensive video I’ve seen! I’m a first time buyer who was outbid on 15 homes last year in the peak. Since then been sitting on the sidelines renting. I’m keeping an eye out for deals this winter- but most likely holding out for the spring/summer when prices have come down a little more and there’s some more inventory built up.
I bought a house and watched the market prices go down for two years after, but never sweated it. Now my house is worth MUCH, MUCH more than I paid for it. I love my house, and even without getting the best price possible, it was still a good deal.
Thank you for this video, Monica! My boyfriend and I have been looking to buy our first home for over a year now and this whole process has just been overwhelming with the ups and downs of this market. This made me feel better about our situation… thank you 🥰
With a looming recession and layoffs starting, I'd only recommend buying right now if it reduces your expenses. For instance, if your rent is rising to $3000 (look at others in the area as well) and you find a house that'd cost less per month (including assumed yearly maintenance), you'd decrease your risk by buying. I bought right before interest rates ballooned and my mortgage is $1700, my old apartment is now $2400. If you already own a home like Monica does, it's a trickier situation. The only easy situation is if you are a cash buyer. Tricky market!
True! That’s great you are in a locked in payment that is so much lower than renting. I think prices need to correct further for it to make sense for most people
@@brooke8888 Mortgage + tax and insurance = mortgage in my comment. Not sure about the rest of your comment, I only said IF it's cheaper. There's cheap rent in parts of the country or rather rents that are less than a mortgage would be for an equivalent house. In that case, renting makes sense.
The one thing i heard in your video that i hear from a lot of real estate agents say - “sellers are not desperate so they wont sell” - my perspective is there are things that happen every year that probably cause at least 1% of the real estate market to sell per year (divorce, job loss, deaths, etc). So we will continue to see people selling and they will sell into a declining market and it will keep going down. Saying that because if anyone on the buyers side can wait, it would make more sense to wait as prices keep normalizing downward.
I’ve been watching a lot of videos on buying houses and this one has such a great/ different perspective. That 2/1 interest thing you talked about could be a game changer. I too might wait until later next year to apply that tactic when I believe home prices will be much lower.
I appreciate the honesty in this video. I have had DOZENS of realtors lie straight to my face this last year about what the market is doing/if things are a good value. I am sick of them tbh. They see that I am young and assume I am naive enough to make a bad investment. They’re all saying to buy now because they know what is to come. I am planning on building my dream home in the spring and thankful I no longer have to stress about all the bs I’ve been fed.
This is so crazy to hear. Here in Switzerland we are going up to 3% interest rate for a 10 year mortgage and it went up so much already. We closed in March and have an interest rate of 1.6% and are so happy. But we were in a bidding war and won. Here prices and interest rates are going up and it doesn't seem to stop. We are happy with what we got, even getting a house in this market was such a gift!
Prices are down because interest rates are up. If you have cash, its a good time to buy. If you need to take a large mortgage, not so much so. Good video
Really liked how you structured this video: real estate is SO complicated but I think this was super well done. I'm in the camp that we're likely going to see a fairly big drop in prices but due to the housing "shortage" I doubt that we're going to see 2008 again. (2008 was also crashing for dramatically different reasons so it isn't really a fair comparison either). I bought my home right before rates went up and am pretty happy with how it went, but agree that really it depends on your budget and what's going on in your life. As long as you're smart and paying attention, buying now and refinancing later isn't necessarily a bad idea. BUT, one thing to consider is also, is your industry at risk in a potential recession. If you buy now and have higher monthly costs, and then lose your job in three months, that could be a really scary financial situation. If you have a super stable job that isn't affected by the markets, this may not be an issue, but Big Tech is currently experiencing massive layoffs, so a lot of previously stable jobs may not be as stable as they once were. (Though, granted, if you're laid off from a big tech company, you're probably going to find a new role pretty quickly, so it really depends).
I’m at an age where I don’t want to be responsible for fixing stuff myself. So renting sounds like a dream. But as with everything in life there are pros and cons to it all! Monica your amazing at giving us useful information and you do a great job at researching. I’ll trust & take your advice since your are a professional realtor and a professional RUclipsr so you go above of what the Norm is as just a realtor ❤
I am a first time homebuyer in southern california and am really torn on what to do. seeing the monthly payments w/ the high 7% interest rates and $200k down is really discouraging. I'm not sure what I'm going to do but this video was really helpful in outlining the three options and thought process behind each.
Hey Beks! Im a realtor here in southern california, would love to help answer any questions you have if youre not already working with someone. Dont want to step on any toes! Have a great night!
We are first time home buyers too in Northern CA, and similar down but we are going to wait for a least some price decreases. We see home buyers backing out by seeing homes go from “pending” to “back on the market!” It’s a lot of money and I want to make sure we get at least our moneys worth. A 900k home that is now selling for 1.4M is just discouraging so we’d rather wait it out. We intend to pay off fast so the interest rate doesn’t matter but we don’t want a home that will lose value and we pay more for it than it’s worth.
I’m genuinely impressed with the quality of this video. Really clearly explaining a complex topic. The only thing I think was forgotten was that with buying in todays market, hoping for a refinance in tomorrows market might not be possible if you find yourself in a negative equity situation. Because of the negative loan to value amount, you’re no longer eligible to refinance. Loved that you emphasized being comfortable with the payment and planning to hold long term. That’s the right mindset.
Sheeesh what an absolutely great edit, I love this vlog style field tour video. I think its going to be a great time to buy in the future. From a price perspective. Odvisouly people buy for different reasons.
Such a great video! Can’t agree anymore on your opinions. I just bought a house that i believe fits my needs/style, although the price is much higher than 2020 but definitely lower than earlier of this year even later of last year. Buying at this time in a super competitive market (Boston suburbs) really makes me feel happy. I didn’t compete offers with other buyers, which provided me a perfect chance to clear my mind about what I would/wouldn’t love for a house. I shopped around for rate, and got a 5% ARM from a local lender in October.
Prices of homes have literally shot up every year since 2008, it’s easy to see why folks are still believing that the rug won’t get pulled. A perspective I’d love to see talk about is how the population growth is slowing which will cause a huge inventory of homes in the future.
I wouldn't describe a 5% drop after a 30 to 80% increase as "cheap". Especially when rates have tripled. Equity is not guaranteed. And when all that equity dries up and people find themselves in upside mortgages on homes they massively overpaid for, they'll cut their spending and the economy will tank. That's when to buy. When everyone else is scared, and pinching and saving.
From personal experience I find your view on whether sellers have become desperate or not incorrect. You think they'll just put it on the market as a rental and it's no big deal, but it is. 6 months ago someone bought the house next to us at an astronomical price. Now they're trying to sell. Then no one would buy it for even close to the price they're selling for.. And they were already losing money! I see Zillow! I know how much they paid! Anyways, they took it off the market and now are trying to rent it but the rent price is astronomical! It makes sense though, their mortgage must be so high! THAT is the market right now. As buyers, we NEED to hold out. We NEED this market to crash not settle because it's better than it was. It is NOT ok and the only way to stop it is to work together collectively.
Hi Monica, the only thing I can depend on as it relates to Real Estate is history. The first I bought cost me $21,900. Three bedroom, two bath. The last house I bought I purchased cost $95,000 in Katy, TX. Now worth $230,000 also three bedroom, two bath. Property values will go up or down but in the long run land prices will go up. The cost to build a new home will continue to grow and out gain inflation cost. The worst investment is a car. Car’s are no investment as they deprecate over time.
The buy down teaser rate that is back is very similar to the early 00s 2 year teaser rates. It is a dangerous financial product that should not be legal.
I was a buyers agent right after we were allowed to do showing again during Corona….It was so hard. Every offer we put in we were competing against 50 other buyers. Granted I was in the Northern VA/ D.C. market which is difficult market either way. But now is definitely a god time to be a buyers agent. I did end up winning a bid and getting the house sold thanks to a little good ol smooth talk. But man, that has to have been one of the hardest things I’ve done in my life.
really appreciate how much SUBSTANCE and knowledge your videos are packed with Monica. I used to watch you in the hairodynamic days (lol tbt) and it's awesome to see how your channel has evolved and grown as you have. I'm learning so much from you now as an adult!
Not a good time to buy .. interest rate is not coming down for a long long time .. no chance for refinance to a lower rate .. if you cant build equity no point in buying
There is one more type of buyers currently in the market right now: cash-only buyers. I bought a condo in Kirkland a couple months ago for investment purposes with no debt. And I know that makes the transaction a lot easier to go through....😀
I really loved this opinion there’s a lot of fear mongering going on. Other platforms tell buyers that interest rates are normal or it’s a terrible decision. Thank you!
Very informative video. Just out of curiosity can you do videos of more Seattle area neighborhoods (South Seattle , Rainier Beach, Lakeridge, Renton, Newcastle/Kennydale)?
I bought at the peak last year in Phinney Ridge. Your standard sigh-unseen, couple hundred over asking (it sounds ridiculous but Seattleites will understand). We lost SO MANY homes. I have noticed two major shifts in our neighborhood, homes are cheaper, and they are SITTING on the market. It is night and day from what we experienced. But in retrospect, you nailed it Monica, it was our time and place to buy a home. With low interest came a higher cost in overall house and we will be here a long time so the market of today is really nothing to fret about.
Thanks Monica! This was presented in a very informative and easy to understand way. I've also heard other real agents talk about "timing the market" vs. "time IN the market."
I'm looking to buy here in Austin. Been looking for roughly 2 years watching the market as I was living in Japan until recently. Great video, and you correctly got most of the things I think about daily with this market.
Appreciate your insight on this Monica. Can I just say, fuck pure investment buyers though. Homes should be for people to live in who bought them. We need to implement a serious tax on anybody who owns multiple properties. Shit is ridiculous.
Thanks for this video, Monica! Really appreciate your thoughts on this topic as I’m going through the same struggle right now of wanting to upgrade my house to get a yard for my dog 😂 but unsure of the market.
You are right, When we cannot predict tomorrow then do what we are comfortable for today. And surly listing are sit longer because of less of competitor and flippers. But the foreclosure are still not pop yet because of the forbearance 30 years could extent to more longer. But on the other hand the lay off are heat up from the tech company. Nothing are really stable yet. Thanks for the video.
Yep, bought in 2011 a small (600 sq ft matchstick) home built in 1947 that was heavily modified and remolded for a flip. The house had a wet basement and I saw why but kept my mouth shut. I offered 105k on what should have been a 150k home and the seller took the offer. After the sale I called a gutter company and move a couple downspouts, dug out the filled in window wells and I now have a dry basement and have lived in the house ever since. The current value is over triple what I gave, but this is where I plan to spend the rest of my life. Remember that small things can be fixed, rooms can be repurposed, and you can even add space, but at the end of the day you either love the aria you are in, and should stay or don't love your location and should sell.
Ok now do it again, but with your 2011 salary, at the current median home price of nearly 400k @ a 7% interest rate. Ngl it’s a bit off-putting when people who were old enough to buy 10 years ago insist on giving advise on housing as if houses weren’t dirt cheap back then lol.
My partner and I are praying for interest rates to go down in two years. Before interest rates went up, we were on track to buy a modest Seattle townhome in 2024-2025. Now the mortgage payments associated with such high interest rates are a HUGE barrier to us getting a place, if they stay high and price don't come down much. But our attitude has been to keep saving as much as we can to get that 20% down, then figure out what to do when the time comes. Like you said, no one can predict the market.
Selling my parents old homes to try to find a nice modern home, so paying cash this is probably the best market for me. When Interest rates go down again the inventory is going to disappear and drive the costs up for me and i'd have to consider another city with a cheaper market.
With you being a realtor you have interest in the price staying high. I’m not sure why you think a price decline of 30% is not reasonable given that most places have seen 50+ % increases over the last 2 years. I’m really of the camp that prices will fall to at least erase the gains of the past 2 years and possibly further.
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Prices are expected to drop near 15% from the highs. Interest rates moving up to more normal levels will drive down the affordability point too. There are going to be lots of people eating big losses for overpaying the last few years when they go to sell. People get sold on “The house of their dreams” and it will cost dearly.
The market has definitely slowed a lot near me. Most of the houses in my community have been sitting for ~2months waiting for buyers and you are seeing the slow price cuts. Unfortunately I don't think it's a good enough market to buy in, prices need to drop further to accommodate for the higher interest rates. But I also would not want to go back to the peaks from a year ago, when we bought our first house, we offered on 10 houses before getting ours. It was the definition of "desperate" and I find it unfortunate for the buyer. We got lucky to get in right before the massive peaks and still got our low interest rate. Will probably be here for ~5-10 years before it is comfortable to move again
I didn’t know of this, but God does know all things. My husband and I were not rich in the slightest, working retail and also new parents, but God provided everything we needed to buy our first home with a couple of acres in yesterday’s market and our monthly payments are low. So I’m appreciative to Him. It was none of us and all Him. Go to Jesus on when to move, if ever, and where to move. He will lead you, but seek Him and His Kingdom first and He will provide for what you truly need in this life. ❤️
Really love the aesthetic of this video. The black TV, chair, laptop and then cabinet make a nice little "scoop". & that white turtle(?) neck looks really nice on you.
Great video , first time watching any of your videos within your channel. Thanks for the honesty and the humble opinions you shared. Hope to see more housing market vids like this in the near future
The people across the street from us paid 100k over asking in March.... The house nextdoor to it went up the end of summer and just sold for 200k less than the one in March.... Almost identical homes .... 45 minutes from Seattle
I have zero skin in the game because I already own a house I plan to stay in for the next decade at least at a 4% interest rate. I write personal finance content and my slightly informed opinion is that interest rates and house prices are going to come down more. I'd wait till at least January 2023 if I were in the market for a home to see what the market does. If the option is renew an apartment lease for a year or buy now, I'd say wait the year. If we do head into a recession, I think home prices will level out more because sadly some people will lose their homes because they don't have emergency savings, which will increase inventory.
Real estate price doesn't concern me as much as sensible payment terms. "Mr. Owner, if you can be flexible on *payment terms,* then I can offer full value." "Mr. Owner, which is more important to you: How *MUCH* money you get or *WHEN* you get your money?" Creative financing solves huge problems for both buyer and seller.
If i had a million dollars how much of that should i put in to purchase a house? Like is there anything else i need to pay aside from the purchase price of the house like taxes or fees that comes with the purchase of a house? Like inspections realtor fees and all that?
This was a great video! I would like to purchase my first home sometime soon, so would definitely rather buy a home for less and manage a high interest rate for a little while and refinance in the future. It’s a risk in the sense that you don’t know know when interest rates will drop, but I definitely think if you buy within your means to where you can manage a higher payment for a while it’s a good deal imo. The strategy/option you outlined made sense. This was a great video! Super helpful 😊
We think alike 👍🏻 so many people only observe 1 thing and base an answer off of that 1 thing!!!! Its like no the markets are based on 40-50 things! If it was 1 thing it be so easy to predict things but its not
Great video, I'd like to point out that even if rates come down, you may not be able to refinance if you are underwater, unless you bring a large down payment to the table.
Right now is the best time to invest in assets not liabilities! I would definitely wait and not buy a liability right now... Thank you for sharing your knowledge with the us! Hope to be able to grow my channel as fast as you are. Keep it up.
Real Estate is also highly leveraged. There is a multiplier on your initial investment when it goes down. You may be forced to walk away if you go upside down for an extended period.
I bought my house in june/2022, just payed my 4th month ❤ I was expecting to buy at 3.75% and the last day the bank change it to 5%. Buy hey, now the interest rate is 7%. Now is NOT the time to buy... it's time to SAVE and wait until interest rates go down. Just save, save and SAVE. And I'm waiting also for them to go down so I can refinance ☺️
It's been a tough market since 2020 for sure. We live in the Netherlands 🇳🇱 and we bought our house on January 2022 right before the mortgage rate rose. The prices are down here too but the mortgage rates are higher.
Thanks for the video. I am planning to buy soon. First time homebuyer but I have a large down payment due to selling property I inherited 20 years ago. I am hoping to refinance at lower interest down the road. Also hoping prices keep dropping. I am in the market for retirement home and stay put for the next 20 years.
Thanks for this video! We moved to Austin last year and have been renting and waiting for a good time to buy. We sold our Ballard townhouse last month and just went under contract last week! It was anxious to sell in a falling market, but being a buyer in a falling market is empowering.
As they say, real estate is all local. Still really low inventory in Philly metro with nice homes continuing to see bidding wars despite the higher rates. Maybe fewer bidders, but until inventory can get back up to 6 mo, probably going to still be in a weird seller's market. New builds have also pretty much dried up. Certain parts of inflation may also be stickier, so not sure we'll see those 2-3% rates in the near future.
Great video and tips! It's a scary time for new investors, but it's best not to make decisions based on emotion.I sold a couple properties in 2021 and I'm waiting for a house crash to happen so I buy cheap. In the meanwhile, I've been looking at stocks as an alt., any idea if it's a good time to buy? I hear people say it's a madhouse and a dead cat bounce right now but on the other hand, I still see and read articles of people pulling over $225k by the weeks in trades, how come?
From my experience from a country in Europe hit relentlessly by recession (10 years and going!) I’d say one thing. People will stop buying real estate and prices will drop tremendously. BUT the banks will not be giving anyone a loan because no job is secure. So, save your bucks as much as possible, you will need it!!!!
I would personally want to buy while the house prices are being cut with the higher interest rate and refinance in the future. Still making sure my current mortgage is well within my budget.
Unfortunately we are going down. Consider how you gonna pay your monthly payment without any or enough income. You may have to rent every single room in your home, and turn your living room to bedroom. Sorry, but that how I grew up in country where the prices are way, way higher than income. But if you don't like that there is still 3rd option " street", and you see that tents are growing everywhere, it's not a joke.
That isn't how it works... those that don't sell have no effect on prices, any desperate seller, and there are always a few, will set the comps for the neighborhood
I live in Madison, WI and the market is still very aggressive, offers are still above asking and selling in a couple days. Plus interest rates here are over 7% now. It’s frustrating as a buyer. Been looking for 3 years and not having luck is annoying
I would love you hear your thoughts/opinions on the housing market! Would you buy now? Or wait? Have you bought in the last few years?
Monica, do you edit your own videos? Off the wall question lol 😬
Love the video. From my point of view, just buy a piece of land and construct a custom made house or a prefab house but don't wait too long due to prices surging to the roof. Lower expenses as much as possible especially with the housing market.
I bought my condo in West Seattle in "yesterday" market - March 2022. So we've got a great interest rate, but had to outbid folks and lose multiple offers before landing our place. I think you're right when you say that the best time to buy a house is when you're ready and buy within your means. I was super stressed by all the bidding wars and waiving our contingencies at the time, but I am glad our monthly payment is well within our means.
@@brad1038 no she has an editor. If yoh go back a few years, that’s when she did edit her own Videos. They were better done then in my opinion.
When do you think LA area houses will be back like in 2008? Thank You
Watched this video on 11/6. Got preapproved on 11/7. Made an offer 11/29 and went under contract 11/30. Thanks for the inspiration Monica!
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Really impressive to see you talking so confident about real estate… you really owned the topic and it is interesting to hear you talking about such a ‘grown up’ topic! Massive congrats! One can tell you have learned a lot in the past years.
I appreciate that! 😊
Your real estate videos make me feel like I can actually understand what the heck goes into buying a house. Please keep making these types of videos!! 😊
This is the most helpful, comprehensive video I’ve seen! I’m a first time buyer who was outbid on 15 homes last year in the peak. Since then been sitting on the sidelines renting. I’m keeping an eye out for deals this winter- but most likely holding out for the spring/summer when prices have come down a little more and there’s some more inventory built up.
Winter has better deals!
Inventory isn’t likely to change much
I bought a house and watched the market prices go down for two years after, but never sweated it. Now my house is worth MUCH, MUCH more than I paid for it. I love my house, and even without getting the best price possible, it was still a good deal.
Thank you for this video, Monica! My boyfriend and I have been looking to buy our first home for over a year now and this whole process has just been overwhelming with the ups and downs of this market. This made me feel better about our situation… thank you 🥰
Just put a offer last night in Seattle and this video was 100% what I needed to hear today. Really helpful and reassuring in a not so reassuring time!
Congrats! Hope you got it :)
With a looming recession and layoffs starting, I'd only recommend buying right now if it reduces your expenses. For instance, if your rent is rising to $3000 (look at others in the area as well) and you find a house that'd cost less per month (including assumed yearly maintenance), you'd decrease your risk by buying. I bought right before interest rates ballooned and my mortgage is $1700, my old apartment is now $2400. If you already own a home like Monica does, it's a trickier situation. The only easy situation is if you are a cash buyer. Tricky market!
True! That’s great you are in a locked in payment that is so much lower than renting. I think prices need to correct further for it to make sense for most people
Not in Northern California. Mortagage, tax, insurance costs more than renting. 😂
@@brooke8888 Mortgage + tax and insurance = mortgage in my comment. Not sure about the rest of your comment, I only said IF it's cheaper. There's cheap rent in parts of the country or rather rents that are less than a mortgage would be for an equivalent house. In that case, renting makes sense.
The one thing i heard in your video that i hear from a lot of real estate agents say - “sellers are not desperate so they wont sell” - my perspective is there are things that happen every year that probably cause at least 1% of the real estate market to sell per year (divorce, job loss, deaths, etc). So we will continue to see people selling and they will sell into a declining market and it will keep going down.
Saying that because if anyone on the buyers side can wait, it would make more sense to wait as prices keep normalizing downward.
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I’ve been watching a lot of videos on buying houses and this one has such a great/ different perspective. That 2/1 interest thing you talked about could be a game changer. I too might wait until later next year to apply that tactic when I believe home prices will be much lower.
I appreciate the honesty in this video. I have had DOZENS of realtors lie straight to my face this last year about what the market is doing/if things are a good value. I am sick of them tbh. They see that I am young and assume I am naive enough to make a bad investment. They’re all saying to buy now because they know what is to come. I am planning on building my dream home in the spring and thankful I no longer have to stress about all the bs I’ve been fed.
Yeah, it’s annoying. Once you start looking, they push you to make offers as well. It makes me feel like I’m wasting their time lol but 😅
Great job breaking down the different scenarios Monica. You have a real good head on your shoulder for this industry and I hope you stay in it.
This is so crazy to hear. Here in Switzerland we are going up to 3% interest rate for a 10 year mortgage and it went up so much already. We closed in March and have an interest rate of 1.6% and are so happy. But we were in a bidding war and won. Here prices and interest rates are going up and it doesn't seem to stop. We are happy with what we got, even getting a house in this market was such a gift!
You got 1.6% for 10 years? That's great!
Prices are down because interest rates are up. If you have cash, its a good time to buy. If you need to take a large mortgage, not so much so. Good video
Really liked how you structured this video: real estate is SO complicated but I think this was super well done. I'm in the camp that we're likely going to see a fairly big drop in prices but due to the housing "shortage" I doubt that we're going to see 2008 again. (2008 was also crashing for dramatically different reasons so it isn't really a fair comparison either). I bought my home right before rates went up and am pretty happy with how it went, but agree that really it depends on your budget and what's going on in your life. As long as you're smart and paying attention, buying now and refinancing later isn't necessarily a bad idea. BUT, one thing to consider is also, is your industry at risk in a potential recession. If you buy now and have higher monthly costs, and then lose your job in three months, that could be a really scary financial situation. If you have a super stable job that isn't affected by the markets, this may not be an issue, but Big Tech is currently experiencing massive layoffs, so a lot of previously stable jobs may not be as stable as they once were. (Though, granted, if you're laid off from a big tech company, you're probably going to find a new role pretty quickly, so it really depends).
I’m at an age where I don’t want to be responsible for fixing stuff myself. So renting sounds like a dream. But as with everything in life there are pros and cons to it all!
Monica your amazing at giving us useful information and you do a great job at researching. I’ll trust & take your advice since your are a professional realtor and a professional RUclipsr so you go above of what the Norm is as just a realtor ❤
I am a first time homebuyer in southern california and am really torn on what to do. seeing the monthly payments w/ the high 7% interest rates and $200k down is really discouraging. I'm not sure what I'm going to do but this video was really helpful in outlining the three options and thought process behind each.
Hey Beks! Im a realtor here in southern california, would love to help answer any questions you have if youre not already working with someone. Dont want to step on any toes! Have a great night!
We are first time home buyers too in Northern CA, and similar down but we are going to wait for a least some price decreases. We see home buyers backing out by seeing homes go from “pending” to “back on the market!” It’s a lot of money and I want to make sure we get at least our moneys worth. A 900k home that is now selling for 1.4M is just discouraging so we’d rather wait it out. We intend to pay off fast so the interest rate doesn’t matter but we don’t want a home that will lose value and we pay more for it than it’s worth.
$200K down!!??
I’m genuinely impressed with the quality of this video. Really clearly explaining a complex topic. The only thing I think was forgotten was that with buying in todays market, hoping for a refinance in tomorrows market might not be possible if you find yourself in a negative equity situation. Because of the negative loan to value amount, you’re no longer eligible to refinance.
Loved that you emphasized being comfortable with the payment and planning to hold long term. That’s the right mindset.
I agree but once there is another buyer frenzy at 4.5 - 5% rate you'll likely appraise for much higher than you bought for today
Sheeesh what an absolutely great edit, I love this vlog style field tour video. I think its going to be a great time to buy in the future. From a price perspective. Odvisouly people buy for different reasons.
Such a great video! Can’t agree anymore on your opinions. I just bought a house that i believe fits my needs/style, although the price is much higher than 2020 but definitely lower than earlier of this year even later of last year. Buying at this time in a super competitive market (Boston suburbs) really makes me feel happy. I didn’t compete offers with other buyers, which provided me a perfect chance to clear my mind about what I would/wouldn’t love for a house. I shopped around for rate, and got a 5% ARM from a local lender in October.
Prices of homes have literally shot up every year since 2008, it’s easy to see why folks are still believing that the rug won’t get pulled.
A perspective I’d love to see talk about is how the population growth is slowing which will cause a huge inventory of homes in the future.
I just bought my house 338k $0 down $2.5k closing cost 6.625% interest with 2550$ a month (with taxes & home insurance included)
This was a lovely, straightforward, easy to understand breakdown. Thank you for putting this together.
I wouldn't describe a 5% drop after a 30 to 80% increase as "cheap". Especially when rates have tripled.
Equity is not guaranteed. And when all that equity dries up and people find themselves in upside mortgages on homes they massively overpaid for, they'll cut their spending and the economy will tank.
That's when to buy. When everyone else is scared, and pinching and saving.
Such a good, down to earth, professional and helpful real estate video - love it!!
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We bought in Bonney Lake WA in April 2021 and we are so glad we bought when we did. Rentals in BL are the same price as our mortgage!
From personal experience I find your view on whether sellers have become desperate or not incorrect.
You think they'll just put it on the market as a rental and it's no big deal, but it is.
6 months ago someone bought the house next to us at an astronomical price. Now they're trying to sell. Then no one would buy it for even close to the price they're selling for.. And they were already losing money! I see Zillow! I know how much they paid!
Anyways, they took it off the market and now are trying to rent it but the rent price is astronomical! It makes sense though, their mortgage must be so high!
THAT is the market right now. As buyers, we NEED to hold out. We NEED this market to crash not settle because it's better than it was. It is NOT ok and the only way to stop it is to work together collectively.
Great video. I think the best advice we give is by putting ourselves into the shoes of the client.
Hi Monica, the only thing I can depend on as it relates to Real Estate is history. The first I bought cost me $21,900. Three bedroom, two bath. The last house I bought I purchased cost $95,000 in Katy, TX. Now worth $230,000 also three bedroom, two bath. Property values will go up or down but in the long run land prices will go up. The cost to build a new home will continue to grow and out gain inflation cost. The worst investment is a car. Car’s are no investment as they deprecate over time.
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The buy down teaser rate that is back is very similar to the early 00s 2 year teaser rates. It is a dangerous financial product that should not be legal.
I agree it’s a bit odd. Atleast this time they are only giving it out if you are actually well qualified for the loan
@@MonicaChurch Very true. They used to pair that with NINJA borrowers.
I was a buyers agent right after we were allowed to do showing again during Corona….It was so hard. Every offer we put in we were competing against 50 other buyers. Granted I was in the Northern VA/ D.C. market which is difficult market either way. But now is definitely a god time to be a buyers agent. I did end up winning a bid and getting the house sold thanks to a little good ol smooth talk. But man, that has to have been one of the hardest things I’ve done in my life.
Hey Monica, what about the kitchen renovation? You have not talked about it again
Yes I am still planning to do it! Flooring starts in a few weeks. The timeline just depends on when the cabinets will be done
really appreciate how much SUBSTANCE and knowledge your videos are packed with Monica. I used to watch you in the hairodynamic days (lol tbt) and it's awesome to see how your channel has evolved and grown as you have. I'm learning so much from you now as an adult!
Explained perfectly, super helpful for anyone considering buying!!
I bought in 2020 when the interest rates were at 3% 🙌
*Wow lucky you!*
Not a good time to buy .. interest rate is not coming down for a long long time .. no chance for refinance to a lower rate .. if you cant build equity no point in buying
There is one more type of buyers currently in the market right now: cash-only buyers. I bought a condo in Kirkland a couple months ago for investment purposes with no debt. And I know that makes the transaction a lot easier to go through....😀
True! A lot of those empty nester type buyers are cash as well.
realestate the first think to fall in a bad market yet it's the first thing to go up in a good market
I'm actually a first time home buyer in Seattle right now looking - you've just summed up what I learned in the past month
Home prices have NOTTTTT come down enough.
People need too look at their local market and evaluate that. Every market is different.
“It’d be nice to have a dishwasher that works”. You could, I do not know, replace the dishwasher instead of buying a new house…
Ok yes 😂 I’m going to soon.
@@MonicaChurch just giving you a hard time 😂, great video! Subbed!
I really loved this opinion there’s a lot of fear mongering going on. Other platforms tell buyers that interest rates are normal or it’s a terrible decision. Thank you!
You are welcome! Thank you for watching 😊
Very informative video. Just out of curiosity can you do videos of more Seattle area neighborhoods (South Seattle , Rainier Beach, Lakeridge, Renton, Newcastle/Kennydale)?
I bought at the peak last year in Phinney Ridge. Your standard sigh-unseen, couple hundred over asking (it sounds ridiculous but Seattleites will understand). We lost SO MANY homes. I have noticed two major shifts in our neighborhood, homes are cheaper, and they are SITTING on the market. It is night and day from what we experienced. But in retrospect, you nailed it Monica, it was our time and place to buy a home. With low interest came a higher cost in overall house and we will be here a long time so the market of today is really nothing to fret about.
Love Phinney! Such an amazing neighborhood. I lived there for a while 😊
Thanks Monica! This was presented in a very informative and easy to understand way. I've also heard other real agents talk about "timing the market" vs. "time IN the market."
I'm looking to buy here in Austin. Been looking for roughly 2 years watching the market as I was living in Japan until recently. Great video, and you correctly got most of the things I think about daily with this market.
Appreciate your insight on this Monica.
Can I just say, fuck pure investment buyers though. Homes should be for people to live in who bought them. We need to implement a serious tax on anybody who owns multiple properties. Shit is ridiculous.
I agree, it's sad that houses are not looked at as shelter.
I’m glad I got into my house in 2018. I refied in 2020 to a 3.5% interest rate.
Thanks for this video, Monica! Really appreciate your thoughts on this topic as I’m going through the same struggle right now of wanting to upgrade my house to get a yard for my dog 😂 but unsure of the market.
You are right, When we cannot predict tomorrow then do what we are comfortable for today. And surly listing are sit longer because of less of competitor and flippers. But the foreclosure are still not pop yet because of the forbearance 30 years could extent to more longer. But on the other hand the lay off are heat up from the tech company. Nothing are really stable yet.
Thanks for the video.
Yep, bought in 2011 a small (600 sq ft matchstick) home built in 1947 that was heavily modified and remolded for a flip. The house had a wet basement and I saw why but kept my mouth shut. I offered 105k on what should have been a 150k home and the seller took the offer. After the sale I called a gutter company and move a couple downspouts, dug out the filled in window wells and I now have a dry basement and have lived in the house ever since. The current value is over triple what I gave, but this is where I plan to spend the rest of my life. Remember that small things can be fixed, rooms can be repurposed, and you can even add space, but at the end of the day you either love the aria you are in, and should stay or don't love your location and should sell.
Ok now do it again, but with your 2011 salary, at the current median home price of nearly 400k @ a 7% interest rate.
Ngl it’s a bit off-putting when people who were old enough to buy 10 years ago insist on giving advise on housing as if houses weren’t dirt cheap back then lol.
My partner and I are praying for interest rates to go down in two years. Before interest rates went up, we were on track to buy a modest Seattle townhome in 2024-2025. Now the mortgage payments associated with such high interest rates are a HUGE barrier to us getting a place, if they stay high and price don't come down much. But our attitude has been to keep saving as much as we can to get that 20% down, then figure out what to do when the time comes. Like you said, no one can predict the market.
Selling my parents old homes to try to find a nice modern home, so paying cash this is probably the best market for me. When Interest rates go down again the inventory is going to disappear and drive the costs up for me and i'd have to consider another city with a cheaper market.
With you being a realtor you have interest in the price staying high. I’m not sure why you think a price decline of 30% is not reasonable given that most places have seen 50+ % increases over the last 2 years. I’m really of the camp that prices will fall to at least erase the gains of the past 2 years and possibly further.
Great video. you've reminded me of what someone once said ❤ Making money is an Action, keeping money is behaviour, Growing money is Knowledge. I once attended a seminar and ever since then I have been waxing strong financially, and I must tell you the truth.
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Not because of ignorance, but because of too many scammers in the business
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Ah ya the market is only down in major metropolitan areas.
Agents will always justify buying. It's how they make money.
Prices are expected to drop near 15% from the highs. Interest rates moving up to more normal levels will drive down the affordability point too. There are going to be lots of people eating big losses for overpaying the last few years when they go to sell.
People get sold on “The house of their dreams” and it will cost dearly.
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The market has definitely slowed a lot near me. Most of the houses in my community have been sitting for ~2months waiting for buyers and you are seeing the slow price cuts. Unfortunately I don't think it's a good enough market to buy in, prices need to drop further to accommodate for the higher interest rates. But I also would not want to go back to the peaks from a year ago, when we bought our first house, we offered on 10 houses before getting ours. It was the definition of "desperate" and I find it unfortunate for the buyer. We got lucky to get in right before the massive peaks and still got our low interest rate. Will probably be here for ~5-10 years before it is comfortable to move again
I didn’t know of this, but God does know all things. My husband and I were not rich in the slightest, working retail and also new parents, but God provided everything we needed to buy our first home with a couple of acres in yesterday’s market and our monthly payments are low. So I’m appreciative to Him. It was none of us and all Him. Go to Jesus on when to move, if ever, and where to move. He will lead you, but seek Him and His Kingdom first and He will provide for what you truly need in this life. ❤️
Really love the aesthetic of this video. The black TV, chair, laptop and then cabinet make a nice little "scoop". & that white turtle(?) neck looks really nice on you.
Great video , first time watching any of your videos within your channel. Thanks for the honesty and the humble opinions you shared. Hope to see more housing market vids like this in the near future
The people across the street from us paid 100k over asking in March.... The house nextdoor to it went up the end of summer and just sold for 200k less than the one in March.... Almost identical homes .... 45 minutes from Seattle
I have zero skin in the game because I already own a house I plan to stay in for the next decade at least at a 4% interest rate. I write personal finance content and my slightly informed opinion is that interest rates and house prices are going to come down more. I'd wait till at least January 2023 if I were in the market for a home to see what the market does. If the option is renew an apartment lease for a year or buy now, I'd say wait the year. If we do head into a recession, I think home prices will level out more because sadly some people will lose their homes because they don't have emergency savings, which will increase inventory.
Real estate price doesn't concern me as much as sensible payment terms.
"Mr. Owner, if you can be flexible on *payment terms,* then I can offer full value."
"Mr. Owner, which is more important to you: How *MUCH* money you get or *WHEN* you get your money?"
Creative financing solves huge problems for both buyer and seller.
This was so informative!! As a first time homebuyer, I have learned so much from this video! Thanks Monica!😊
If i had a million dollars how much of that should i put in to purchase a house? Like is there anything else i need to pay aside from the purchase price of the house like taxes or fees that comes with the purchase of a house? Like inspections realtor fees and all that?
This was a great video! I would like to purchase my first home sometime soon, so would definitely rather buy a home for less and manage a high interest rate for a little while and refinance in the future. It’s a risk in the sense that you don’t know know when interest rates will drop, but I definitely think if you buy within your means to where you can manage a higher payment for a while it’s a good deal imo. The strategy/option you outlined made sense. This was a great video! Super helpful 😊
That’s what I would personally do too!
What is that final house with those water balcony views ❤️
Thats in West Seattle, it sold in 2021. Really pretty house. It was old footage I had 🤫
We think alike 👍🏻 so many people only observe 1 thing and base an answer off of that 1 thing!!!! Its like no the markets are based on 40-50 things! If it was 1 thing it be so easy to predict things but its not
Great video, I'd like to point out that even if rates come down, you may not be able to refinance if you are underwater, unless you bring a large down payment to the table.
Housing prices will return to Q3 2020 prices and interest rates need to get back near 5% before it's time to buy
Right now is the best time to invest in assets not liabilities! I would definitely wait and not buy a liability right now...
Thank you for sharing your knowledge with the us! Hope to be able to grow my channel as fast as you are. Keep it up.
Real estate is an asset that increases in value, has been for many decades before you and still is today
Except it is an asset.
Real Estate is also highly leveraged. There is a multiplier on your initial investment when it goes down. You may be forced to walk away if you go upside down for an extended period.
It's an investment when you are the landlord of a cash flowing property. Your own house is a liability.
I bought my house in june/2022, just payed my 4th month ❤ I was expecting to buy at 3.75% and the last day the bank change it to 5%. Buy hey, now the interest rate is 7%. Now is NOT the time to buy... it's time to SAVE and wait until interest rates go down. Just save, save and SAVE. And I'm waiting also for them to go down so I can refinance ☺️
I closed June 2022 as well. Mine was also 5%, but I paid points for a 4.75% rate
Is it okay that I watch your videos, not because I'm interested in buying a house, but because I just love your videos? Asking for a friend...
Love u Monica for being such an amazing influencer ur my favourite youtuber
Prices may be down but interest rates have doubled since I purchased my house earlier this year....
It's been a tough market since 2020 for sure. We live in the Netherlands 🇳🇱 and we bought our house on January 2022 right before the mortgage rate rose. The prices are down here too but the mortgage rates are higher.
Thanks for the video. I am planning to buy soon. First time homebuyer but I have a large down payment due to selling property I inherited 20 years ago. I am hoping to refinance at lower interest down the road. Also hoping prices keep dropping. I am in the market for retirement home and stay put for the next 20 years.
Thanks for this video! We moved to Austin last year and have been renting and waiting for a good time to buy. We sold our Ballard townhouse last month and just went under contract last week! It was anxious to sell in a falling market, but being a buyer in a falling market is empowering.
It's a terrible time to buy in general. Check prices from 2-3 years ago and ask yourself why the current price is so much higher.
As they say, real estate is all local. Still really low inventory in Philly metro with nice homes continuing to see bidding wars despite the higher rates. Maybe fewer bidders, but until inventory can get back up to 6 mo, probably going to still be in a weird seller's market. New builds have also pretty much dried up. Certain parts of inflation may also be stickier, so not sure we'll see those 2-3% rates in the near future.
Great information Monica for Buyers and Sellers!
Great video and tips! It's a scary time for new investors, but it's best not to make decisions based on emotion.I sold a couple properties in 2021 and I'm waiting for a house crash to happen so I buy cheap. In the meanwhile, I've been looking at stocks as an alt., any idea if it's a good time to buy? I hear people say it's a madhouse and a dead cat bounce right now but on the other hand, I still see and read articles of people pulling over $225k by the weeks in trades, how come?
From my experience from a country in Europe hit relentlessly by recession (10 years and going!) I’d say one thing. People will stop buying real estate and prices will drop tremendously. BUT the banks will not be giving anyone a loan because no job is secure. So, save your bucks as much as possible, you will need it!!!!
I would personally want to buy while the house prices are being cut with the higher interest rate and refinance in the future. Still making sure my current mortgage is well within my budget.
Unfortunately we are going down. Consider how you gonna pay your monthly payment without any or enough income. You may have to rent every single room in your home, and turn your living room to bedroom. Sorry, but that how I grew up in country where the prices are way, way higher than income. But if you don't like that there is still 3rd option " street", and you see that tents are growing everywhere, it's not a joke.
do you have a video on how you struxture a video like this? workflow? script? thoughts on camera shots?
The market in Michigan is such trash..
This was so helpful! Currently miserable in a Ballard townhouse that we’ve long outgrown but interest rates will continue our misery for now.
I can totally empathize, we are in the same spot!! Don’t hesitate to reach out if you just want to chat further about planning for the future :)
More inventory
That isn't how it works... those that don't sell have no effect on prices, any desperate seller, and there are always a few, will set the comps for the neighborhood
Im under contract for a home. Close date is 6/19 :) so excited!
Thank you so so much for this video. Currently shopping for a condo but planning to buy in a year or so
I live in Madison, WI and the market is still very aggressive, offers are still above asking and selling in a couple days. Plus interest rates here are over 7% now. It’s frustrating as a buyer. Been looking for 3 years and not having luck is annoying
@In Your Empty Skull no this is not the case. Just explaining not every city’s housing market has slowed down.
usually 10 year low rates followed by 10 years of high interest rates....