[JayCT]

skytrekker - I am sorry but housing should not be thought of strictly as an investment. People need a place to live and for most it is either a rental or buying. Renting gives you nothing more than a receipt at the end of the month. Not much for what you have to pay. It also does not provide the security of home ownership. I know renters who have to move every couple of years, never settling down.

Like I said if you try to time the market, you will never buy. By the time you realize the market is on an upswing, you may be priced out of what you could have bought eariler or interest rates will rise. You will always be second guessing yourself.

When I bought 15 years ago, they were saying the same thing. The housing market was poor and interest rates were high. I bought anyway and now it has worked out well. I only wish I had extended myself even more to get a home I like better. Anyway, I think the OP needs to realize that they are the only ones that can determine when it is best for them to buy. If you have a good downpayment, good credit and a reasonably secure job, it is your call when to make the jump. Jay

[skytrekker]

Jay

I agree- but unfortunately many people in the last several years have looked at housing as an investment. You have stayed in one location for many years-not everyone may plan to do that.

[flyingdaggers]

I agree with Jay on the theory.

However I also totally agree with Skytrekker about the media, some if not most public economicsts and their predictions.

Adding to the problem I also happen to be a cheap bas***d type of person who is often psychologically and physically bothered when she misses a chance of being more cheap.

[jjbradleynyc]

Originally Posted by JayCT

I don't know if I would "wait it out", otherwise you may never buy. There is no perfect time to and always some reason not to buy. If you wait for a couple of years for the market to improve, interest rates could be higher. Experts agree that trying to time the housing market is crazy as is trying to time the stock market. The best time to get in is when you can afford to get in and hold on to your property for a number of years. Over time the housing market will improve. I have seen this advice in numerous financial web sites like CNN-Money, Forbes, Bloombergs, etc., so it not just me. If you are ready to buy and plan to stay in the home for several years, then go for it. JMHO Jay

Good post. Absolutely agree with Jay's advice.

[skytrekker]

Well what else would a Realtor say
No offense meant.

But....
the current problems in the market are due to easy money, funky no money down mortgages , speculation, and false information given by the NAR, and other mainstream news sources since 2004.

As far as buy now- cause you cannot time the market-tell someone who bought a home in Sacramento California a year ago and the house is now currently worth 25% lower-----that does hurt- also Goldman Sachs said today we will likely see three quarters of negative growth this year- known as a recession.

Theory is one thing- reality is another. See calculated risk Calculated Risk

[flyingdaggers]

and easy money probably being the most important... JMO

Oh Is Jay a realtor I didn't know.

[JayCT]

No Jay is not a Realtor. JJBradleynyc is. Jay

[Rich Lee]

There were a few factors at work that led to the frenzy. The biggest one was the low interest rate loans that persuaded many qualified buyers to upgrade (or, upsize) their house. Then there was the abundantly available credit to those who, let's be honest, weren't credit worthy. Then there were those buyers (aka "investors") disappointed by the under-performing stock market (hovering around 10,000 in June 2006) who were looking to diversify their portfolio.

Some REALTORS® took advantage of the situation. I didn't. I had several buyers in 2005 who asked me to speculate on what the market would do in two or three years (which would be right about now). I told them that I wouldn't count on one-percent-per-month appreciation happening much longer and that the real estate market would "correct itself" like all markets do when growth is explosive.

For a brief time, home ownership was at an all-time high. Sadly, it's dropping due to foreclosures.

[saharris]

Thanks for the info. I guess the biggest issue would be selling my house here in Atlanta. I agree with the fact that renting is throwing your money away- what is the price of a 3/2 rental house around Storrs per month?

[skytrekker]

saharris- that would run about $1500 a month. I know sales have also slowed in the Atlanta area.