Housing market (Pittsburgh: sale, real estate market, renting)

[martiffs]

I was wondering how the housing market is around here?

How do you think it will be next year, say around spring time?

[fleetiebelle]

Are you buying or selling?

[martiffs]

I would like to buy, first time home buyer.

[Johnny C]

There are lots of affordable houses out there for first time buyers - it is def. a buyers market (assuming you can get a loan).

[fleetiebelle]

it is def. a buyers market (assuming you can get a loan).

Especially if you don't have to sell another property.

[Humanoid]

Watch out, although Pittsburgh didn't have a huge bubble like some other areas Real estate in the city did get overpriced over the last few years. If you aren't in a rush renting for a while may be a good idea. A "buyers market" is just another way of saying prices are going to go down...

Of course, prices could get better by Spring too.

[Copanut]

First of all, figure out how much of a loan you can afford. Most lenders have been playing it fast and loose over the years, that may change with the current economic climate. Most lenders still look for a ratio of 4-1 income/debt.

Since you are a first timer you could go FHA and only have to come up with a 3% down payment. You have to jump through some hoops to get it, but it's worth it.

It currently is a buyers market, personally, I would wait a few months and then only look at vacant houses. That owner is probably paying for two mortgages and with the Winter coming up, may be looking to dump it. Do a little homework and research the property. Find out it's last sale price and see how much of a mortgage there is, then low-ball the hell out it. It's the American way!

[Humanoid]

Originally Posted by COPANUT

First of all, figure out how much of a loan you can afford. Most lenders have been playing it fast and loose over the years, that may change with the current economic climate. Most lenders still look for a ratio of 4-1 income/debt.

The lending standards have already tightened significantly. After all tighten credit markets is the basis of the current financial crisis.

Also, just putting down 3% is not good. It gives almost no buffer if prices go down. Suppose, prices go down 5% over the next 3 years but you have to move. You'll need to put money on the table to even sell your house.

[Copanut]

Originally Posted by Humanoid

The lending standards have already tightened significantly. After all tighten credit markets is the basis of the current financial crisis.

Also, just putting down 3% is not good. It gives almost no buffer if prices go down. Suppose, prices go down 5% over the next 3 years but you have to move. You'll need to put money on the table to even sell your house.

The poster is a first time buyer which is why I recommended FHA. If he were to purchase a home for 100K, he's got 3% equity. If the value of the home decreases and he's upside down in 3 years, hey, that makes it easy to walk away. The New American Dream.

[Humanoid]

Originally Posted by COPANUT

The poster is a first time buyer which is why I recommended FHA. If he were to purchase a home for 100K, he's got 3% equity. If the value of the home decreases and he's upside down in 3 years, hey, that makes it easy to walk away. The New American Dream.

My problem was not you recommending the FHA, the FHA will be more than happy to accept a longer down-payment. My problem was with the low down payment. Its risky, especially now given the state of the real estate market.

As far as I'm concerned if you can't save at least a 10% down payment you have no business owning a home.