Mortgage rates

[BMF]

Here is another one. Click on property history if you like but house was listed in July 2022 for just under 1.3M. That was exactly one month after what is now known as the peak of the Kung Flu house madness. It did not sell obviously. Fast forward 12 months and it is now Relisted for 875K. Quick math says roughly 33% reduction. Funny thing is if they had the house in this condition in 2021 or early 22 and listed it, I guarantee some jacka$$ would have given 7 figs at that time. But someone who likes that "modern" look will probably give in the 8's. FWIW other homes similar in layout and size in same neighborhood are now listed in the 6's.

6526 Via Benita, Boca Raton, FL 33433 | realtor.com®

6526 Via Benita, Boca Raton, FL 33433 is pending. View 36 photos of this 3 bed, 2 bath, 2211 sqft. single family home with a list price of $875000.

www.realtor.com

Other than the floors and the master bath walls that's a really nice house. I'm surprised similar homes are in the 600's - hell, my house is worth over $600k and it is old (1972) with low ceilings and it's not in SE Florida where prices are highest in the state.

 

[BMF]

Update on this property. Just went under contract with a list price of $409K. So will close for somewhere around 40% below original ask. Take out the rehab construction costs, carrying costs this will be a decent sized loser.

They originally wanted $649k? Wow. That's a HUGE hit. They should have just rented that place for a couple of years.

 

[FireFoley]

They originally wanted $649k? Wow. That's a HUGE hit. They should have just rented that place for a couple of years.

Agreed. Paid 355K and gutted it so a big hit. But you know as well as I do, even tho this is a different time than 05-07, no one ever thinks they are going to be the last one in. There will always be the next sucker to offload it to.

 

[FireFoley]

Here is a very prime example of what is going on here, especially the properties bought by investors/contractors. rehabbed and now they are hoping to break even, at best. You can see this if you scroll down to Property History. But I will summarize. Bought Summer 2022 for 355K, the national Kung Flu top. Rehabbed. Listed for 650K, dropped to 615K, dropped to 595K, dropped to 560K, dropped to 520K, now 480K. A 20+% price drop from first list. Trust me, knowing this community and the condition it is currently in, had this been listed 2021, would have brought 600K.

7145 Promenade Dr Unit 101C, Boca Raton, FL 33433 | realtor.com®

See photos and price history of this 3 bed, 2 bath, 1,825 Sq. Ft. recently sold home located at 7145 Promenade Dr Unit 101C, Boca Raton, FL 33433 that was sold on 09/02/2023 for $370000.

www.realtor.com

Final Update. Closed this week for 370K. Do the maff on a 355K purchase price, a full rehab and carrying costs for over 1 year. Guess the original ask of 649K was just a little aggressive.

 

[Concrete Helmet]

Final Update. Closed this week for 370K. Do the maff on a 355K purchase price, a full rehab and carrying costs for over 1 year. Guess the original ask of 649K was just a little aggressive.

The dumpster is still in front of the one I sold at the beginning May and it was flipped the next day for 45K more than I sold for......a new dumbass is born everyday....

 

[URGatorBait]

The dumpster is still in front of the one I sold at the beginning May and it was flipped the next day for 45K more than I sold for......a new dumbass is born everyday....

To be fair, it takes a lot of time to repair all the schit you fuched up

 

[FireFoley]

Here is another laughable example. Been on market about 4 months. Started at 1.6M now down to just over 1M. Just under a 40% drop. Aside from the useless fireplace in south Florida it is a nice house. 2 years ago someone would have dropped 1.5M b/c the Kool Aid was still flowing. Late 2019 prior Kung Flu, 775K max.

5660 Wind Drift Ln, Boca Raton, FL 33433 | realtor.com®

5660 Wind Drift Ln, Boca Raton, FL 33433 is for sale. View 37 photos of this 3 bed, 3 bath, 3494 sqft. single family home with a list price of $1050000.

www.realtor.com

 

[Concrete Helmet]

Don't fret I'm sure the Biden Regime will find pictures of Powell with a goat or something to make him drop rates before the election....when Bitcoin reacts south Florida property values will be right back to where they were 18 months ago

 

[BMF]

Here is another laughable example. Been on market about 4 months. Started at 1.6M now down to just over 1M. Just under a 40% drop. Aside from the useless fireplace in south Florida it is a nice house. 2 years ago someone would have dropped 1.5M b/c the Kool Aid was still flowing. Late 2019 prior Kung Flu, 775K max.

5660 Wind Drift Ln, Boca Raton, FL 33433 | realtor.com®

5660 Wind Drift Ln, Boca Raton, FL 33433 is for sale. View 37 photos of this 3 bed, 3 bath, 3494 sqft. single family home with a list price of $1050000.

www.realtor.com

At $301/sf that seems reasonable - there are dumps (compared to that) here in Gulfport, less than 1000sf selling for well over $301/sf.

 

[BMF]

Mortgage rates hit a 23-year high

The rate on the average 30-year fixed mortgage increased to 7.31% from 7.19% the week prior, according to Freddie Mac.

finance.yahoo.com

 

[FireFoley]

At $301/sf that seems reasonable - there are dumps (compared to that) here in Gulfport, less than 1000sf selling for well over $301/sf.

Exactly. This was my point during the whole Kool Aid drinking thing. No one ever cared about total debt which is why they pay $300/sq ft. for 1000 sq. ft. b/c they are only buying a "Payment" and at 3% they could afford 300K. They do not give a shyt about price per sq. ft. It is why we now have 40-50% drops in ridiculous asking prices b/c people were paying anything they could find 2 years ago. But you will still get the morons paying 300K for 1200 sq. ft b/c it fits monthly within their already stretched budget. But the mid priced stuff that people were paying $300/ sq ft for 3000 sq ft can no longer afford that at 7+% or even 5+% even with buydown help. Thus 1.5M is now 1M.

 

[FireFoley]

Mortgage rates hit a 23-year high

The rate on the average 30-year fixed mortgage increased to 7.31% from 7.19% the week prior, according to Freddie Mac.

finance.yahoo.com

These are one week prior. I saw 7.8% on Bankrate today, but they tend to be at the high end.

 

[Concrete Helmet]

Exactly. This was my point during the whole Kool Aid drinking thing. No one ever cared about total debt which is why they pay $300/sq ft. for 1000 sq. ft. b/c they are only buying a "Payment" and at 3% they could afford 300K. They do not give a shyt about price per sq. ft. It is why we now have 40-50% drops in ridiculous asking prices b/c people were paying anything they could find 2 years ago. But you will still get the morons paying 300K for 1200 sq. ft b/c it fits monthly within their already stretched budget. But the mid priced stuff that people were paying $300/ sq ft for 3000 sq ft can no longer afford that at 7+% or even 5+% even with buydown help. Thus 1.5M is now 1M.

It's no different than most stocks...when free money was everywhere they went to all time highs. Look at the R2000....it's down 40% to where it was before 2020 and going in a straight line...when reality of these companies refinancing debt at much higher rates hits ALL of these stocks will go down another 30% and then I'll go from TBills balls deep into them and wait for the fiscal cocaine to get lined up.

 

[BMF]

These are one week prior. I saw 7.8% on Bankrate today, but they tend to be at the high end.

Ooooof!!

 

[FireFoley]

Ooooof!!

Exactly. That is why existing home sales are at an all time low and even New Home Sales are falling, even though the builders are giving 5% mortgages as incentives. It is an odd time as you will hear some people say the housing market is great (it is not) b/c the prices are out of control. Then when you tell them transactions are at an all time low and people are losing their jobs in that business they look at you cross eyed, LOL.

 

[URGatorBait]

Exactly. That is why existing home sales are at an all time low and even New Home Sales are falling, even though the builders are giving 5% mortgages as incentives. It is an odd time as you will hear some people say the housing market is great (it is not) b/c the prices are out of control. Then when you tell them transactions are at an all time low and people are losing their jobs in that business they look at you cross eyed, LOL.

The business I help operate is somewhat connected to housing, be it through the homeowner themselves or various contractors.
Up until the end of Q1 this year we would typically see anywhere from 20-30% growth over the previous years same month.
This year, others in the franchise are seeing upwards of 20% DECLINES in sales.
Luckily we've still managed to "grow" since start of Q2, but it's pretty much flat as compared to same month previous year...only seeing about 3 or 4 % increases this year. So we are happy we aren't going backwards, but it ain't growing like it was and we think it is exactly what you're talking about.
We are operating with same amount of equipment as last year so glad we didn't decide to add more than we needed lol

 

[Concrete Helmet]

Rates push up a little bit more due to the flooding of treasuries on the market. This is an old trick to push the longer end of the curve up. This is always done RIGHT before the FED cuts rates....MEANING the 10 year will begin to drop drastically after the beginning of the year.....right in time for the Spring/Summer buying/refi seasons. This will cause a bonanza in the market due to a small amount of price stability built in over the last year....better act quick though as next summer will likely see new all time highs in good areas like Florida and investors will get re invigorated due to some FC's showing up....The "new" 5.0-5.5 purchase money mortgage will be like blood in the water for pent up buyers who have been looking at 7.5 or so...

MSN

www.msn.com

 

[FireFoley]

10 YR Treasury just whiffed a sniff at 4.75% this AM. Can't wait to see just how frozen the existing home market will become nationally when the 30 YR Conv. MTGE has an 8 handle. Maybe later today in some areas?

 

[FireFoley]

the 20 YR Treasury is comfortably above 5% so this is the first time in a long while there is a risk free (sans inflation) rate of return of any long duration in quite some time. the 20 year is not a popular duration so might be one of the reasons it carries the highest yield on the long end of the curve.

 

[Concrete Helmet]

10 YR Treasury just whiffed a sniff at 4.75% this AM. Can't wait to see just how frozen the existing home market will become nationally when the 30 YR Conv. MTGE has an 8 handle. Maybe later today in some areas?

Seems to be having the opposite effect...purchases are solidly picking up....I guess people are afraid they're gonna go even higher, but I'd advise people to wait about 3-4 months when they drop back down to 5% as the short end is about to get dumped any day now.