We purchased a $1.2M home in 2022 with a 10-year ARM at 3.6%. At the time, choosing the ARM made sense because it helped us keep our monthly payments lower. With interest rates now significantly higher, I’m starting to think ahead. What options should we consider, and what steps would you recommend we plan for over the next five years before the ARM period ends?
Smaller house, longer commute, different neighborhood, a kitchen that needs work… what came off your wish list to make the numbers work?
Now that you’re living there, was that compromise worth it?
Curious where you bought, too—what your budget gets you varies so much by area.
Just a little mistake. Would hate to see the tax bill
A new Redfin report reveals that U.S. housing costs could return to pre-pandemic "normal" levels within the next 5-6 years if mortgage rates ease and/or price growth flattens. Redfin defines "normal" as returning to August 2018 conditions, when the typical homebuyer spent roughly 30% of their household income on a mortgage payment.
Costs are closest to returning to normal in San Jose, Oakland, Seattle, Portland and Austin, where home prices are falling and incomes are projected to grow.
Housing costs could take at least a decade to return to normal in half of the metros in this analysis–including the New York City area–largely because home prices in those places are rising faster than incomes.
Do you think housing affordability will realistically catch up over the next 5 years, or have high costs permanently reshaped buyer expectations in your city?
(from the top is the best deal when it comes to real estate rating and the bottom of the list is the worst deal when it comes real estate ratings)
(🟫very overpriced )
(🟥moderately overpriced)
(🟧leaning overpriced)
( 🟨average deal )
(🟩leaning below value)
(🟦moderately below value )
(🟪very below value )