Anyone still buying with increasing interest rates?

Question

Hello,

Just wondering if any investors are still buying in Huntsville/Madison area with increasing rates in current market. In CA, I’ve been seeing price reductions with some remaining on market for longer than 90 days. What do y’all think about the Huntsville market?

Jeremy Horton · Answer

Absolutely - first time in a while I can ask for some seller concessions because they don't have 50 over ask offers in less than 24 hours

I'd prefer to buy at a lower price and higher rate - I can always refi that rate. Nothing you can do about a high purchase price - and if you ever do refi - guess what? That rate is more than likely going up

Caleb Bryant · Answer

@Jessie Kristie there will be a lot more deals soon if you’re having trouble finding them now. Sellers are starting to realize that the pricing of 4 months ago isn’t the pricing of today. There is also an opportunity for sub-to deals using the sellers existing lower rate financing. With the economy getting more and more turbulent you will also see some people making moves they wouldn’t have considered 6 months ago because of fear of where things are headed.

Chris Mignone · Answer

Yes I’m buying 2-3 properties a month and factoring on 5-10% decrease on ARV when I’m analyzing comps to be safe. Hope that helps

Dena Puliatti · Answer

The market has slowed down.  This is becoming more of a buyers' market, so negotiations are happening instead of just hammering with offers.

Michael S. · Answer

@Jessie Kristie - we are always buying so long as the numbers work.

It's actually been a bizarre year for us as we have bought more off the MLS than off-market.

Jordan Woolf · Answer

@Jessie Kristie we have bought 8 the past 2 months and still buying.

As @Caleb Bryant mentioned sellers are starting to realize the market is shifting. One seller told me today that he thinks he missed his window to sell.

A lot of homeowners have large amounts of equity and locked in low interest rates. Just a guess but I believe there will be opportunity from investors that overpaid and have balloon payments due.

Justin Fox · Answer

Nope, new construction and housing in general are tanking in these parts while prices for labor and materials are the same or more.   it's a no-go for a bit unless someone's grandma dies or they get divorced.

Rodney Sums · Answer

I'm gonna use the S word:

I stopped momentarily. Last couple deals I had this year the sellers had the perspective they don't have to offer any concessions, should get above appraisal and not fix anything.

Low and behold rates, DOM, and inventory are increasing with some prices coming down.

That's just me, I certainly don't take the position everybody needs to pause or that nobody is having success right now.

Eliott Elias · Answer

Yes, just being conservative with my numbers now

Anyone still buying with increasing interest rates?

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