Sell - OR keep and rent? WHAT TO DO!?!? (housing, prices, renting)

[ThreePitas]

So we all know housing prices are TANKING right now - good for buyers, not so good for sellers - really really bad for me.

My husband and I are moving to CT to build our home. But we need to sell our house in RI (I feel like this RI market is the worst in the country - I've heard it said that RI's always the first one into a recession and the last one out).

Or do we? - is it wise to hold onto a house and rent it out, waiting for prices to eventually get better?

We have a realtor coming by Wed to talk with us, but she did tell my husband that recent buyers are all at town hall yelling about their taxes. Apparently (according to the agent) the few houses that are selling right now have actually gone for LESS than the assessed tax value. Is that crazy or what? Our whole town was re-assessed about two years ago.

So what's the wisdom on this one? In order to build the house we want, we need to sell. BUT I seriously am considering keeping the RI house, renting it out and just building a garage with an apartment on it to live in for now!

Maybe I'm crazy - I do have three kids, a dog, a cat and a mom who visits a lot! I can just imagine us all in an 800 sq ft apt. I hope my mom doesn't mind sleeping in the bathtub. (Or maybe she'll make hubby happy and go to a hotel!?!)

[CrissCT]

I think it depends on how much equity you have in your home and how long you've owned it. Can you afford to sell it at the current market value or do you need much more? Also, renting is a big pain are you up for it?

We are in kind of a similar situation - also moving to CT, and we have decided to rent out our home in San Diego since the rental market is very strong here and we are still able to buy a home in CT without having to sell this one.

Good luck with your decision. I know it is not an easy one!

[sykesfamily]

Hi there we are in the same situation in washington state. We have been trying to sell our home on the market since nov and just relisted with a new realtor the beginning of April with only 1 showing. We just dropped our price 20 k from the price we started with. We can only drop another 4 k to even be comfortable to purchase another home in the Seattle area where housing and the cost of living is much higher than where we are now. Even though renting is a pain we may decide to do that if the house doesn't sell. Good luck in what ever u decide to do.