I am due to receive $200,000 in divorce mediation. I’m thinking of buying a house, but I’m at a loss for options.
I have been disabled since 2012 and am over 65 years old. If I work again, it will only be part time. You will need social security and the money you earn from working to pay for medical and daily living expenses. That’s why you can never buy a house that costs more than 20 million yen.
If interest rates rise, will house prices fall?
I live in Florida and housing here is very expensive. Food prices too he’s rising another 10-50 cents every two weeks. I heard on public radio that the Florida housing market won’t change much due to high demand.
““I live in Florida and housing here is very expensive. Food prices are also going up another 10 to 50 cents every two weeks.“
I’d like to know, will housing costs go down in other states? I would like to pay the expenses and leave my daughter a small house. I don’t want to borrow It is very important to me to leave her her home. Thank you for your time.
Frustration
‘big move‘ is a MarketWatch column that looks inside and outside real estate, from searching for a new home to applying for a mortgage.
Questions about buying or selling a home? Want to know where your next move is?Email Arti Swaminathan [email protected].
dear frustration,
I don’t have a crystal ball Home prices are likely to fall, but it won’t be the big sale we saw after the Great Recession. So it might be worth starting your search now.
Buying a home is a tough time. Not only are mortgage rates high, but the number of homes available for sale remains low. Many prospective sellers are not willing to sell their homes secured at ultra-low interest rates.
That means housing is still expensive and out of reach for many buyers.
As you say, Florida is expensive. According to Zillow data
Z.
According to information provided to MarketWatch, only 15% of homes for sale in Florida are below $200,000.
And while house prices are starting to fall, a recent report from S&P CoreLogic Case-Shiller, which regularly tracks house prices, says: the price fell last month — 8.6% more than last year. So while prices may not go up, housing is still expensive.
Moody’s Analytics chief economist Mark Zandy told MarketWatch that he expects U.S. house prices to fall by up to 10% from peak to trough over the next two to three years. However, we have to consider that these prices have increased by 40% since the start of the pandemic.
“I don’t think US housing prices will crash,” Zandi told me. “Of course, if the economy were to go into recession, the housing price decline would be more severe.
“ “I don’t think the U.S. house price crash will happen.“
If you’re planning on buying the property all cash and not taking out a mortgage, one option is to look for a small home in Florida. There are many single-family homes and condos across the state that sell for less than $200,000, but they can be small or need some work. If you intend to do that, weigh those options.
When it comes time for your daughter to inherit the house, she will likely tend to fix it with the financial means.
If you both prefer condos, there are also some options available on the beach. But consider the cost of property insurance. With the increased risk of storms and flooding in Florida, it can really drain your budget.
Your other option is to look for suburbs in Virginia or Washington, D.C. According to Zillow, 17.1% of Virginia homes are priced below $200,000, a higher percentage than in Florida.
For reference, across the United States, about a fifth of homes, both single-family homes and condominiums, are listed under $200,000.
Also, ask your daughter if she prefers a house in the suburbs or a unit in the city. The price range varies depending on the region.
The obvious downside of moving north is the cold. Winters can be harsh, and if you or your daughter are used to the warmth of Florida, it can be difficult to get through the cold months in the mid-Atlantic region.
Whatever decision you make, it’s worth hiring a real estate agent to help narrow down the homes to sell.
Bottom line: there are very few buyers in this market. So start by looking for a home in Florida first and then move that search north. Expand your search to include single homes and condos. And when you find something good, jump on it. Sellers are motivated, so there may be room for negotiation.
I know you don’t want to borrow. Rents can be precarious, especially if some landlords decide to raise the rent when the lease term ends.
It’s time to move and start looking at your home. All the best in your search.
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