Real estate results census.

[modmondays]

Originally Posted by Elke Mariotti

That's not an easy answer, IMHO.

The current flurry of activity is most likely due to

a) the time of year (Spring buying)
b) lower prices
c) historically low interest rates
d) $8,000 1st time home buyer credit

that's an unprecedented combination of factors.

Homes that were priced aggressively have sold near, at, or sometimes even slightly above asking prices (yes, I've seen a number sell above asking price!). There are still plenty of sellers out there who won't lower the price to where it should be - either because they don't want to accept market conditions (not MY house!) or for financial reasons, i.e. they owe close to or more than the market/buyer will pay.

I do believe we're near the bottom, but even with all the activity, short term, increases will be an exception, IMHO, if only because (as you mentioned) we have such huge inventory of homes on the market - and the listings keep coming.

I believe I've said it before, if you're going to buy (not for the short term!), do it now! If you want to trade up, sell and buy now - whatever you're "losing" on the selling end, in most cases you'll more than make up for it on the buying side. Interest rates are artificially low because of government intervention; that'll stop before you know it and then the rates have only one way to go... UP! If you're only selling, you'll either bite the bullet or wait four or five years...

Ok, I'll get off my soap box

I just heard a radio commercial on WCBS from the National Association of Realtors with exactly the same response as above. Elke, are you a realtor?

[zulu400]

Originally Posted by Elke Mariotti

Looking for lower prices? You may well find them, just beware of interest rate increases.
No, I'm not saying it because I'm a Realtor; current interest rates are artificially low! On April 2nd, the Wall Street Journal had an article on this subject, "Lowering Mortgage Rates May Have Risks".

Just something to think about

At this point of time there are amazingly conflicting articles, and you can pick articles that can further your cause easily, there was another article in cnbc that said interest rates were likely to stay around 4 % for 2009.... so its really very daunting to make the decision.
I do agree though that if you think you can live in your house for next 5-7 yrs then you should buy regardless of the news as we have had an adjustment in the past year.

[Elke Mariotti]

Originally Posted by modmondays

I just heard a radio commercial on WCBS from the National Association of Realtors with exactly the same response as above. Elke, are you a realtor?

Yes, I am a Realtor, but haven't seen the commercial yet. They must have read my post

BTW, I'm also a Financial Planner (CFP), so I look at the financial side with a professional eye...