30-year mortgage rates are near 8% with excellent credit. Interest rates have climbed for the past three months straight. The Fed is considering another interest rate increase for November and December, possibly pushing rates up to 8.5% or even 9%. The reasoning is that higher interest rates will "slow down inflation".
Home sales are at a 13-year low. Factor in the higher cost of insurance and the fact that property taxes are going up to unaffordable levels and the very high cost of labor and materials for home construction... and you have a real estate market that's going to crater.
I personally know several homeowners that had their homes listed for sale, but have removed them from the market in the past 2 months. They will wait and hold on to what they have for now. One real estate agent mentioned to a couple that they should keep their house off the market until at least middle of next year and then decide based on market conditions.
I'm suggesting that the U.S. economy is a three legged stool... and one of those legs is housing and private & commercial real estate. If it fails, the economy goes into a deep recession at best.
I appreciate your honesty as well as your disclaimer -- however, you ALSO sound like a very knowledgeable and logical person regarding this topic. And given that, let me ask your opinion on this question -- some folks on this topic have mentioned living in mid-sized homes built in the 60s/70s that sold for $50K-$60K, that are currently "worth" 10x or more than that. I am in that boat...and we just paid off our mortgage two years ago.
Given that we've lived in a disgustingly BLUE area for the past two decades in the Peoples Republic of Northern VA and HOPE to move south to SC to escape the suffocating taxation and proximity to so many nasty/brainless liberals.....what would you do? The price of our VA home continues to crazily climb, while the home prices in the SC coastal area we wish to live are starting to tumble. Our hope was to sell our home and then buy a new home down south in cash. But my gut feeling is that we probably need to wait another 6-18 months to see what transpires.
Do it you won't be sorry. I did.
Your google is as good as mine. Sorry.