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My husband will be losing his job in Jun 2009. We are a single income family. We bought a house last year and are able to comfortably make the payment and live our life with his salary. However it will be very tough to do so once he no longer has a job. Unfortunately he is in the financial services industry which is in shambles now so chances of him getting another job by then looks very slim at this point. And no, before anyone points out, he never made those bonuses which everyone keeps talking about. We just lived within our means and saved. We have savings to live for about a year. So, my question to you is whether we should try to sell now when he is still employed or should we try and hold it till spring 2010 and hope for a recovery. If we sell now, we will be looking at approx. $100K losses including brokerage (ofcourse if we can manage to sell in this market!!). We were wondering if this is wiser than trying to hold on, burn our savings and then still sell at a loss because the real estate market may not recover/bottom by spring 2010. Any ideas or thoughts from people here would be most helpful. We are at our wits end trying to weigh in the options and we'd really appreciate others inputs. Thank you for your time and response.
Oh My God! I'm in exactly, exactly, exactly the same situation...
Thanks to all for your replies. It is indeed a difficult decision. My husband is trying very hard to look at different job options. At this point, there is nothing, not that it cannot change in the next few months. I am also from the same field, have worked before but been out of the market for the past 3 years. I have been looking actively as well but so far there are no takers for someone who has not worked recently. Now I am planning to look at retail/hourly jobs and substitute teaching.
Oh My God! I'm in exactly, exactly, exactly the same situation...
Jen
I so emphathise with you. I couldn't sleep last night, thinking about what we could possibly do to deal with the situation. In the coming months, there will be many more like us, as the problem spreads from the subprime folks to people who lose their jobs. In a normal situation we had enough cushion to either get a new job or sell it. In these times, its scary to blow away savings on just hope.
you know I would not take that kind of loss right now!! It is too early. I would try and start looking for new job, update resume, paint house and fix up if ready to sell, and do my hardest to try and find a new job before maybe lets say April 2009. But just to take a big loss now is too early. You never know your husband may be so charming and good at interviewing he may just land a good job. You can't tell right now. He has not tried yet. In the meantime, do all you can to make your house show better. Just to drop 100K is not MY FIRST CHOICE YET!!
Jen
I so emphathise with you. I couldn't sleep last night, thinking about what we could possibly do to deal with the situation. In the coming months, there will be many more like us, as the problem spreads from the subprime folks to people who lose their jobs. In a normal situation we had enough cushion to either get a new job or sell it. In these times, its scary to blow away savings on just hope.
My husband wants to wait to sell until he's out of work. But who knows if it's going to be possible to sell at all by then... Houses in my area are barely moving, almost not at all. I'm usually the type to cut my loses and get out, but of course we have never faced such a loss before...
My husband wants to wait to sell until he's out of work. But who knows if it's going to be possible to sell at all by then... Houses in my area are barely moving, almost not at all. I'm usually the type to cut my loses and get out, but of course we have never faced such a loss before...
My husband also wants to tide it out and I'm the risk averse one. Houses in my area have moved if desirable and well priced but who knows how it will be in the near future.
My husband will be losing his job in Jun 2009. ....chances of him getting another job by then looks very slim at this point.
I would concentrate on socking away extra money now. You should live right now as if he IS ALREADY unemployed. Cancel the cable, don't go out to dinner. Take any extra money saved and put it in the bank. Most finance writers recommend anywhere from 3 months to 12 months living expenses saved up in the bank. Make sure you've got no credit card debt, pay it all off.
He should inquire about the cost of COBRA for health insurance now, not when he's let go. That will help you plan your post-job budget.
And finally, June is 8 months away. That's a long time from now. A lot can happen between now and then (hopefully more good then bad). Good luck!
I would try and hold out, if possible. The spring markets have proven to be a better time to sell in years past-let's hope that trend continues.
I believe it will, especially if the rates drop like they talk about will happen at the beginning of 2009.
Yes sales will increase in general in the Spring. BUT AT reduced prices. 84k foreclosures in October. And there is still the backlog of homes being foreclosed due to new laws that allow owners to keep them longer.
Any type of bailout is not going to help most people and those are only good if you can keep a job. Lowering a payment or mortgage rate is only helpful if you still have money or income.
So you can wait and have a better chance to SELL (more buyers) but also more houses up for sale typically then anyway which means reduced prices.
I hope I am wrong for your sake but the writing is on the wall. More job losses will just add more inventory on the market.
If you think you can both get other jobs and maintain then sure that is your best option long term. But people speculating that EVEN when things hit bottom that a turn around to the old top is close are crazy. Not going to be a 'V' situation.
Ive never heard of getting told 8 Months in advanced that your job is gone.. Thats strange right there. You will lose double that if you wait it out. The housing market will be 2x as worse next year...You are in a tough spot. Hope you find some work...
Good for you that you lived within your means and accumulated some savings.
You don't say what your thoughts are about relocating. Have you considered that, in the financial services industry, the NY/NJ area may not be a good place to look for jobs now?
Maybe the decision to sell the house should be put off until you know where your next job(s) are going to be. Or, are you going to try to stay in your current town no matter what? If so, best if you got some kind of job asap.
Given all of the various bailout schemes being proposed, it's impossible to tell where the real estate market in NJ will be in 6-12-18 months. Short of a massive bailout, i don't see how it can go anyplace but down, probably 10-15% more. For your specific situation, much will depend on the attractiveness of your house, desireability of your town, etc.
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