Forum Index
Boston Bubble - Boston Real Estate Analysis
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 


Advertise on Boston Bubble
Buyer brokers and motivated
sellers, reach potential buyers.


Go to: Boston real estate bubble fact list with references
More Boston Bubble News...
DISCLAIMER: The information provided on this website and in the associated forums comes with ABSOLUTELY NO WARRANTY, expressed or implied. You assume all risk for your own use of the information provided as the accuracy of the information is in no way guaranteed. As always, cross check information that you would deem useful against multiple, reliable, independent resources. The opinions expressed belong to the individual authors and not necessarily to other parties.

rising interest

Post new topic   Reply to topic Forum Index -> Greater Boston Real Estate & Beyond
View previous topic :: View next topic  
Author Message
john p

PostPosted: Sat Feb 18, 2006 11:48 pm GMT    Post subject: rising interest Reply with quote

I am a first time buyer that is competing with other buyers that are trading up from starter homes or condominiums.

One big disadvantage I have is that others that have bought 5 years ago can have a bigger down payment due to the appreciation of their first purchase.

With rising interest, home prices will be pressured to drop due to affordability and the decrease of buyers.

If prices drop due to interest rate increases, people who are trading up will face two disadvantages. First, their down payment will be minimized because their appreciation will decrease. Second, the mortgage rate in their current property will most likely be lower than the current rate so it won't make as much sense for them to walk away from the cheaper cost of capital.

The third advantage is the portablity of not currently owning. I am finding that there is a big tug of war between generations and buyers and sellers. Because the expectations are varied and you can find experts and data to support just about any position, people can be very stubborn which I think explains the increase in the number of days on the market most houses seem to be sitting.

Am I on the right track with this thinking???
Back to top
Display posts from previous:   
Post new topic   Reply to topic Forum Index -> Greater Boston Real Estate & Beyond All times are GMT
Page 1 of 1

Jump to:  
You can post new topics in this forum
You can reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum

Forum posts are owned by the original posters.
Forum boards are Copyright 2005 - present,
Privacy policy in effect.
Powered by phpBB © 2001, 2005 phpBB Group