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

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Rainmaker
3,331,511
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

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

Sep 07, 2019 10:16 AM
Rainmaker
3,089,149
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill 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
4,989,058
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for 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
1,111,392
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty

Not in our area.

Sep 07, 2019 10:01 AM
Rainmaker
1,237,516
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
3,310,476
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

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
410,953
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

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
546,848
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
2,859,997
Anna Banana Kruchten CRB, CRS 602-380-4886
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana!

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

Sep 07, 2019 10:10 AM
Rainmaker
1,604,277
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

I have not seen it in our market John Henry 

Sep 07, 2019 04:12 PM
Rainmaker
5,375,741
Roy Kelley
Realty Group Referrals - 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
582,580
Peter Mohylsky
PrimeSouth Properties - Santa Rosa Beach, FL
Let me help you find your path to the beach.

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

Sep 07, 2019 11:26 AM
Rainmaker
926,752
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

No.

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

Sep 07, 2019 11:19 AM
Rainmaker
2,454,339
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

bears watching...

Sep 07, 2019 10:48 AM
Rainmaker
1,542,140
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Guns and Butter Economic Theory

Sep 07, 2019 12:04 PM
Rainmaker
3,271,320
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
4,441,277
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
1,547,060
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Yes, seen

Sep 08, 2019 07:38 AM
Rainmaker
652,664
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
3,011,128
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
4,210,383
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - 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
2,777,408
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

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

Sep 07, 2019 02:20 PM
Rainmaker
175,031
John Henry
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
678,290
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
185,080
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
2,994,483
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

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

Sep 08, 2019 03:22 PM
Rainmaker
2,789,865
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

I am not seeing that. 

Sep 08, 2019 07:52 AM
Rainmaker
1,303,033
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names 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
433,981
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