Home prices headed for a triple dip (MSN article)

[Bruin85]

Originally Posted by HockDad

I really don't think you can time the market. Buy a house that you love, make sure it does not have any huge warts (not enough bedrooms, no garage, etc.), pay extra principal every month to build equity, take care of it, and you will be fine. Don't go into a house expecting to make money. You might, or you might not. You should get back equity plus a modest appreciation, but you never know.

I just signed a contract for a new home too and when I saw that article that you are referring to I was happy, because my biggest worry at this point is interest rate risk. It will be next spring sometime before the house is built and we close the deal, so any weakness in the national economy will be more reason for the Fed to stand pat and not raise rates by then. As far as the local economy goes, I am not worried. It seems like real estate in the Dallas area is going up because of all the jobs moving here. Not because of wide spread speculation, home flippers, foreigners, or investors trying to scoop up foreclosures. So, long term I think the market will be fine. I agree with HockDad. It is very hard to time the market. The main thing is to buy a house that you like and that you can comfortably afford, and pay it off as quick as you can. As long you can afford the mortgage, taxes, insurance, upkeep, etc, then it doesn't matter what the value of the home is. Just think of any appreciation as a bonus. And don't forget the tax write off and that rents will no doubt continue to rise.

[Lakewooder]

Supply vs. Demand -- with new jobs coming in that should not be a problem. However a wild card is all the vacant land to the north, the threat of eventual overbuilding or that the proximity (and or traffic gridlock) is so far that demand peters out...

[sirdevan]

I read the article and I agree, it's just some writer's opinion. It doesn't even really have facts. It goes loosely on the "West" being the sign for the rest of the country. I know everything I have read and spoke to has projected an increase of 6% for homes in this area from now until mid next year.

Of course it's all a crap shoot. We could have another war or tragedy and the bottom drop out again, but as it currently stands, its heading up, in this area anyway.

If you plan to buy, I would do it before winter is over. Homes tend to skyrocket around February-March due to house buying is strongest around April-July. People want to move while school is out in June and be moved in before it starts again in August.

I was watching 'used' house prices this year and they were highest in June and beginning of July but in August they had already started to drop and went down fairly quickly. Some of that was people needing to get out from under a mortgage because they had bought a new home, but the rest was the demand lowered for used as people are buying new.

New home prices have been rising 5-10% every month for the past 4 months. I know, I was on the market from June to August and in September they were still rising.