Coffee heat rising

Home Prices…Up 20 Percent??????

Looking for your morning hit of amazement? Check this out.

If that’s true, then the downtown house over which M’hijito and I have agonized for lo! these many months is now worth $216,000: six grand more than we owe on it.

And…last night we had a guest speaker at the real estate class: a mortgage broker. He reported that you can get FHA financing for as little as 3.5 percent. Our mortgage mod, which we obtained when I lost my job, is at 4.3 percent. So if that’s true, we should look into refinancing right now.

It’s not completely outside the realm of possibility that these little jaw-droppers could be true. Right now housing inventory in Arizona is at an all-time low, because Chinese and Canadian “investors” (read “absentee landlords who don’t care what happens to your neighborhood as their rental properties deteriorate”) have flooded into the state. Nay, they have tsunamied into the state.  A buyer looking for a place for her family to live can’t find a house for love nor money. Yesterday at the weekly network-fest, our Realtor member reported that one house he’d looked at with a client got thirty-eight bids!

We’re also told, however, that banks are about to unleash their shadow inventory of foreclosed properties. They’ll be selling empty houses to speculators in lots of 500. Investors buy these properties in cash. You can imagine what the result of dumping this stuff on neighborhoods will be, especially as most of the homes are converted into rentals with little landlord oversight.

And so, the rich get richer and the middle class gets poorer.

I guess if we’re going to try to refinance to get out from under the balloon that’ll come due in a few years, we’d better do it now.

3 thoughts on “Home Prices…Up 20 Percent??????”

  1. Congratulations! Your downtown house is no longer under water. I say this calls for a Guinness or two.

  2. @ Stephen and Evan: Guinness: good idea! As for plan of action: dunno. It would require us to get the place reappraised, of course, and that’s not cheap. And presumably we’d have to throw more money at the mortgage lenders. My son was unhappy at how much it cost to refinance the last time; not sure he’d want to do it again. He’s come to regard the payments as akin to rent.

    Also, if we have to refinance at 30 years instead of the present 40, even if we got a 3.something rate, our payments would go up. With me permanently unemployed, we can’t afford what we’re paying now, to say nothing of an increase.

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