Would you buy in this market? (Boston: sales, real estate, mortgages)

[AandAplus3]

Would you buy a house in a suburb of Boston in this market? Any real estate people out there guessing if the market is going to continue going down (for the most part)?

[professorsenator]

Yes, I would but you've got to find a seller who's motivated. There are a lot of houses that are just languishing on the market right now because the sellers want 2005 prices.

But there are always some sellers who are highly motivated a ready to deal. Do your homework on the going sales rates etc. in your target town(s), look for motivated sellers, and make low (but realistic) offers.

[smarty]

I agree with professor...

There are communities where prices have dropped a lot... but a few hold up very well... and then a few I think will drop even more... Hence, I think it depends on the town you're looking... prices is all about supply and demand... location location location... Of course, if we go into extended recession, overall price will drop more.... without jobs... people cannot afford to pay mortgages.

To answer your question... no I would not buy now... I think there is another 10% drop. But, that would depend if my crystal ball is working... it has not worked well in the past year... it never predicted this bubble burst...

[jayrandom]

My wife and I just bought, so I guess the answer would have to be yes. Do I think that prices are still going to go down more--I think the answer there would be yes as well. It's almost impossible to time the bottom of any market, so if you just wait until everyone says there is a recovery you will be too late.
If you're looking to make a quick three year profit and roll that in to something nicer now is not the time. It may never be the time for something like that again--hard to say. If you're looking for a nice place to live that you can call your own for the next ten plus years, you should at least start looking. Like the other posters wrote--there is the occasional good deal out there so it doesn't hurt to be looking. One advantage of a down market is that you can afford to take your time and really consider what you want and can afford.

[LeavingMA]

Will prices continue to decrease?...probably, but no one has a crystal ball. It is a better time to buy now then it has been the past 5 years. I wouldn't say it is a bad time to buy, there are some good deals out there.

[Xenos]

No.

Maybe in two years, if prices go down, or if prices are stable and overall inflation is high. It is way too soon to be sure that a house does not become a millstone around your neck.

[Skwidy]

Of course now is a good time to buy. If you're looking to live in a house rather than invest in one, that is. Look, they're not making a heck of a lot more land here in the greater boston area, so even if the prices here decline another 10%, which in some places they will, others, not so much, and in other places, they're appreciating still (supply and demand still rules), at some point the will go up again. And if you live in a place rather than investing in one, then chances are that you'll be there when prices come back and increase again. Regardless, prices have dropped and if you're looking to live in a house, do you really need to time the market to get the absolute nadir? Will you be completely unsatisfied with the real estate (the construction and location) if you buy at 10% off instead of 15% off? Or are you concerned with prices dropping another30-40-50%? Not gonna happpen, but I think if you approach a buying situation focusing on a single asset, and not trying to paint the whole market with a broad stroke, then you will be able to determine if that one house is priced to its value. Otherwise, why give yourself a headache? Remember the value of the house is a general number that gives you a rank of a house in relation to it's competition as you value it. The price is what you and seller agree to close the deal at. If there's more competition for the house, then the price should be higher than the value of the house. The only way to know the value of a house is to research your target market to the nth degree. See every house that's on the market and that comes on the market for the next year. Ask a broker to give you the details on deals that actually traded in the last 6 months that are comparable to the house you're looking at. Go see those comps. Have a friend who lives in that town take you on a tour of it and tell you which are the nice neighborhoods and which are the bad ones. Armed with this info and doing it over and over again will give you a great understanding of the value of each new house that comes to market and you'll be able to say with confidence if the price is greater than the value or equal or less. Then you can buy with the same level. This is going to take a lot of time and effort, but isn't something as major as a house purchase, especially with all the uncertainty that's out there, really worth all that time and effort? Good luck!

[jamesandveybe]

Only gamble with money you can afford to throw away.

[Martha Anne]

I basically agree with you. Also, there are many houses to choose from right now at prices that might drop, but not all that much (maybe 10% ? but maybe not) and the thing to remember is that there are many houses to choose from.

Also, it seem to me that if someone can afford to buy now, then he/she can look at other ways to save $$ such as investigating all the ways (solar, geothermal, better insulation) to save money on energy, as this is going to be the big bugaboo now. So, if you can get a house that is lower in price than it would have been last year, and it is what you like and can afford, buy it and focus on green and energy saving improvements now. That's my advice, at least.

[Skwidy]

I guess another and maybe more important question to ask yourself is can you get financing? Banks are the most skittish of all parties right now. So before you undertake any sort of buying adventure, I'd get real close and comfortable with someone at a bank who will be loaning you the money to finance your house (unless you're lucky enough to take it down all cash!!). This is where all that homework will help out as well. If you have a lot of data to convince yourself that you're buying a good house at a reasonable price, then selling that story to a bank should be easier and thus a bit easier to get financing.