1 in 7 Home buyers backed out in July

[Mark K]

It's not really that it is a local issue. It is that the group that the ratio impacts is only first time homeowners.

I think it is. In this area, for example, taxes and insurance are relatively cheap compared to other locations where, combined, they can be a huge, additional part of the payment. Also, the median price here is cheaper than the national average and the ratio of deals falling apart are probably more like 1 in 20 and that's generally due to a potential buyer having his deadbeat past catch up with him.

It also helps that the new construction builders are buying down the interest rate to 5% and you can get a new 1,800 sf, 3/2, 2 car on a 12,000 sf lot for $325K.

 

[Terrel L. Shields]

Why not enjoy the equity from the home?

Sure. Live for today. If the economy blows up, Uncle Sugar will bail you out just like it did Fannie Mae.
What happens if you have a stroke and are unable to speak clearly let alone function and generate the income to pay off the monthly note? I've appraised far too many homes of retirees borrowing money to stay afloat and working as greeters or one old guy was a gate guard at a warehouse well into his 80s working the night shift.

I work to keep my mind from growing stale. I have written a lot of historical articles and 2 books published and 3 manuscripts in play. And appraising is a way I get out of the house, roam the countryside mostly rural property. But I've not had to work for years. And I make nary a penny's payment on my house, cars, or farm. Haven't had payments in almost 10 years except a commercial lawnmower that had a zero down and zero interest 3-year deal. Why not let my money earn money and take that deal? Set it up to auto draw from my account and paid it off 5 years ago.