Is It Time to Buy That First House?
Jammin909
Posts: 888
http://www.nytimes.com/2008/12/06/business/yourmoney/06money.html?pagewanted=1
I have a problem with this statement-
"Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage."
I don't understand why it is seen as a great time to buy at a 20% discount from 2006/2007 prices, when the average house/apartment has doubled or tripled since 2000.
I specifically refer to Washington DC metro housing prices. I am sure more rural areas did not experience the appreciation (inflation) that major metro areas had, but the logic remains the same...
I have a problem with this statement-
"Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage."
I don't understand why it is seen as a great time to buy at a 20% discount from 2006/2007 prices, when the average house/apartment has doubled or tripled since 2000.
I specifically refer to Washington DC metro housing prices. I am sure more rural areas did not experience the appreciation (inflation) that major metro areas had, but the logic remains the same...
The less you know, the more you believe.
Post edited by Unknown User on
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Comments
Houses are just sitting on the market.
I don't care where you live.
They are not worth what they were worth 2 years ago.
And I don't feel right when you're gone away
Trust me,... now is the time to buy a house. I am an economist and one of the things we do is forecast house prices.
First, house prices have fallen by 20% and by the time you close probably 25%. Second, mortgage rates are very low, and may get even lower (look at Paulson's plan yesterday to push em to 4.5). Even if that doesn't happen they are pretty good. Third, there's a ton of incentives right now, like the $7500 tax credit if you buy now. This is basically an interest free loan from the gov't for 15 years. You can do whatever you want with it if you buy soon. Fourth, housing demand has been below supply for sometime, but there's recent evidence (over the past quarter) that demand is now back above supply. That doesn't mean prices will rise just yet because the market needs to work through the excess inventory first. But, once it does (probably 2ndQ 09) house prices will begin appreciating again. THat means.... NOW IS THE TIME TO BUY.
Sure if you compare 2005 prices vs 2008/2009 prices, that 25% off looks like a lottery pick.
If you take the graph back to year 2000, and look at the basics (unemployment, wages, mortgage rate and % down required, supply) I would argue that yes, now is a better time to buy than in 2005, but prices still have a long way to fall until they are back on par with the historical rate of appreciation.
Getting the speculators out of the market with help too! Oil is down $100 a barrel in 5 months. Sure demand can be based upon the predicted supply down the road but shit...one bubble after another. I have a hard time differentiating housing prices with oil prices- appreciation based on weak bullshit fundamentals...
i don't think house values are dropping to year 2000 levels. plus like the other guy said rates are so low right now, they really cant get much lower (except if they do drop to the 4.5 range but that wont last forever).
i really wish i waited a few more years to buy. my house has probably lost around 5 grand in value in the last 3 years.
The $7,500- incentive helps. Since the real estate taxes and loan interest are tax deductible that can also be a positive factor favoring buying. The remaining problem is finding a place you really like at a price you can afford.
We like our home. It may have gone down in value recently but we're not planning on moving for quite a while.
I strongly agree, now is the time to buy. Especially if it's new construction. They are throwing in all sorts of add ons. Marble counters, up graded kitchen and bath fixtures, better cabinets, plastered walls instead of just wall board it goes on and on..... It's a buyers market and be sure to take advantage of it. Or better yet take advantage of a property that has been on the market for months, people are getting desperate to sell. The only draw back with so many people that have re-fianced, or newly purchased within the last 5 years owe more than their house is worth.
I still feel that my husband and I made a solid purchase and we are not concerned with the drop since we are staying here for at least the next 15 years perhaps the full time of the loan! My only advice is make a list of all the things you want and don't back down from it. You will get what you want at the price you want it at. We wanted a garage, we wanted 2 baths, we wanted land. We were told we would never get all that we wanted and we needed to settle for less. We got all of that and more. Needless to say the real estate person we were working with for the entire time, was the one who was telling us we couldn't get all that we wanted. So we ventured out on our own and went with some random guy, just to see...he got every last thing on our list and within our price range. I called the real estate agent about a hour after we closed and I think I heard him shit his pants.