John Henry, Florida Architect, Residential Architect, Luxury Custom Home Design (John Henry Masterworks Design International, Inc.)

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Rainmaker
4,550,468
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Scenarios of all kinds occur when the physical(a property) meets the mental/emotional.  

Sep 07, 2019 10:16 AM
Rainmaker
5,095,861
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Market value is market value for a home... not necessarily tied in to interest rates. Regardless of rates, you need to price a home for market value not the interest rates.

Sep 07, 2019 10:25 AM
Rainmaker
5,583,167
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

high home prices are more of a "supply and demand" situation.... there are plenty of buyers ready to jump, and that's because of low interest rates.... they had better jump high if they want the home ....highest price with the cleanest deal wins.....

Sep 07, 2019 10:45 AM
Rainmaker
1,598,452
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Not in our area.

Sep 07, 2019 10:01 AM
Rainmaker
1,497,598
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

No.  High asking prices are there due to low inventory.  Low interest rates just means more buyers are off the fence.

Sep 07, 2019 12:51 PM
Ambassador
5,198,207
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Depends upon the market, I suppose - and the price range and if it's a buyer or sellers' market where they are. 

Sep 07, 2019 11:05 AM
Rainmaker
469,510
Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

I think months of inventory is a stronger factor in determining what prices are doing but low interest rates do make the buyer pool larger - more qualified buyer's for each price point so low rates definitely make it possible for folks to pay higher prices. So in my opinion - interest rates are part of the puzzle.

Sep 07, 2019 01:09 PM
Rainmaker
755,555
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

I think lower interest rates attract more buyers & more buyers than sellers drives demand, hence prices, higher. I also see a correlation here in CT between high taxes & low property values or average taxes & higher home values. 

Sep 07, 2019 11:58 AM
Ambassador
3,580,029
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

In some areas that lean towards a sellers market that could be true....maybe. 

Sep 07, 2019 10:10 AM
Rainmaker
2,371,895
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I have not seen it in our market John Henry 

Sep 07, 2019 04:12 PM
Rainmaker
7,784,536
Roy Kelley
Retired - Gaithersburg, MD

No. However, more people do qualify for mortgages and that does increase the pool of prospective home buyers.

Sep 07, 2019 12:02 PM
Rainmaker
1,182,170
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

I have not shopped for a car and have not seen any correlation 

Sep 07, 2019 11:26 AM
Rainmaker
1,528,499
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

No.

I see nostalgic sellers over priced all of 2019, not just when the rates dropped.

Sep 07, 2019 11:19 AM
Rainmaker
2,775,046
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

bears watching...

Sep 07, 2019 10:48 AM
Rainmaker
1,722,326
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Guns and Butter Economic Theory

Sep 07, 2019 12:04 PM
Rainmaker
5,188,610
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

I have not noticed a correlation. If the value is not there, I just walk away!

Sep 07, 2019 11:47 AM
Rainmaker
5,772,353
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

John,

Like Michael Jacobs said, this is not necessarily the reason.  Prices are usually based on comps in residential. A

Sep 07, 2019 11:32 AM
Rainmaker
2,070,825
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

Yes, seen

Sep 08, 2019 07:38 AM
Rainmaker
811,653
Paul Antonelli
Antonelli Realty - Saint Cloud, FL
Broker Owner; Antonelli Realty

Here it's low inventory and higher prices. 

Sep 08, 2019 03:14 AM
Rainmaker
4,847,665
Richard Weeks
Dallas, TX
REALTOR®, Broker

I see a correlations between high asking prices and many days on market.

Sep 08, 2019 03:08 AM
Ambassador
6,348,448
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

No, people buy what they want and a little interest does not matter.

Sep 07, 2019 04:21 PM
Rainmaker
4,131,558
John Pusa
Glendale, CA

John Henry low interest rates can have impact on asking prices.

Sep 07, 2019 02:20 PM
Rainer
274,346
John Henry, Florida Architect
John Henry Masterworks Design International, Inc. - Orlando, FL
Residential Architect, Luxury Custom Home Design

The way I see it is that the average home buyer looks at asking price and interest rate together.  They will figure they can afford a larger or more expensive home if interest rates are lower, because the monthly payment is within their budget.  Like automobile sales, the seller knows that more people can afford a higher-priced home with lower interest rates due to the lower monthly payment so the seller feels more comfortable raising the asking price.  Sticker price on autos seems to be less negotiable when the sales people insist you can afford the price because low interest rates result in a lower monthly payment.

Sep 08, 2019 04:56 AM
Rainmaker
5,846,858
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Buyers like the low interest, and spurs on their desire.

Sep 22, 2019 02:06 PM
Rainmaker
1,292,456
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Every opportunity is unique. I have not noticed any correlation to interest rates and asking prices.

Sep 12, 2019 05:54 PM
Rainer
225,526
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

Home prices are based on inventory and consumer demand. The higher demand, the higher the price. Interest rates make the home more affordable, therefore more consumers would qualify. Cars are a different story, unless you’re looking to buy the new 2020 Corvette

Sep 09, 2019 06:05 AM
Rainmaker
3,415,644
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Low interest rates mean high interest in buying and low amounts of listings equal increased prices. 

Sep 08, 2019 03:22 PM
Ambassador
3,338,449
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

I am not seeing that. 

Sep 08, 2019 07:52 AM
Rainmaker
1,390,113
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Some sellers get it into their heads that they need to "leave room to negotiate."

Sep 08, 2019 06:21 AM
Rainmaker
556,236
Greg Cremia
Shore Realty of the Outer Banks - Nags Head, NC

The real estate boom in the 80's had high prices and high interest rates, so your theory is disproven.

Sep 08, 2019 05:55 AM