looking for housing bottom........ (2013, refinance, credit)

[gbmohan]

I have already bought a home in peak 2005 but had to sell it with a loss after 3 years. Now i would like to buy, but i dont want to do the same mistake even though i might stay in the house for a long time. Is the housing bottom in

1. mid 2012

2. mid 2013

3. after 3 or 4 years

4. already hit a bottom

What are your opinions? thanks

PS. SHOULD I BUY WITH 10% NOW OR WAIT FOR 2 MORE YEARS TO BUY WITH 20% DOWN?

[kimchee]

Honestly, it's hard to predict but one thing is for sure, if you buy now you'll be able to buy more for your money because the interest rate is so low.

Just check any 'How much can I afford' calculator.

You can get a home for a ridiculously low rate of 3.75 / 30 yr. term from a broker these days. Check any historical rate graph and you'll see that that rate is hard to come by... rates are higher below because it's the national avg. But if you use a discount broker and have great credit, your rate could be lower. I just did a refinance for 3.75 rate this week...

[tdstyles]

Too much economic uncertainty to say for sure, anyone picking any of your choices is merely throwing darts at the board. Unless you find the perfect house at the right price you might as well wait. The housing recovery is not going to happen overnight anyway. It won't be like the stock market where it is cut in half and then recovers 80% of its losses in less than a year.

Prices have come down, they could come down further or they could flat line. Historically prices usually go down between NOV-JAN but then again so does inventory.

My advice is to keep an eye on interest rates. Since it sounds like your next house will be for the long term and in the long term that is the most important factor.

[bababua]

Just my opinion but I think we have a little to go in terms of housing numbers. Jobs are still tough to come by not to mention borrowing is really tough unless you are a great candidate. I am looking to do something but I just don't see enough reason to buy in just yet. The fact that rates are pretty much at an all time low and this hasnt done much to soothe the housing market has to scare some people. If rates go up prices will come down even more so. Then again who knows?

[GiantRutgersfan]

my gut says they have a long ways to come down.

Loads of people live in homes they bought 15, 20, 25 years that they could not even come close to being able to afford if they had to purchase it in 2011

[HalfFull]

Originally Posted by GiantRutgersfan

my gut says they have a long ways to come down.

Loads of people live in homes they bought 15, 20, 25 years that they could not even come close to being able to afford if they had to purchase it in 2011

Great point. Used to talk about just that issue with friends -- many people in my neighborhood clearly could not afford to live there if they had to pay market prices in the run-up to 05-06. In retrospect, that seems like the definition of a bubble.

[timneh5]

No one has a crystal ball. Are you planning to flip the home or live in it for many years? You have to do what's right for you.