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Thanks Shelly! We'll take all the good luck we can get!
For what it's worth, I'm also trying not to take my realtor on too much of a roller coaster ride. We mostly see homes via open houses unless we actually think a one might have enough positives to push us off the fence.
I'll be entirely candid. I hate this housing market. Even if interest rates were 8% and prices were higher, if the thing felt stable and sustainable, I wouldn't mind.
I'm keeping my fingers crossed for everyone-- buyers and sellers-- that this clears up sooner rather than later.
and just some unsolicitated advice: When you go visit those open houses, make sure your agent knows and take some of his/her cards (to protect you in case you find YOUR home). Most agents will protect you and your agent : )
Don't wait to buy ... they said. Interest rates are going up!
Well ... 30 year mortgage rates fell a whopping .7 percent in just one day.
Before ... you'd have to pay 6.5. Now 30 year mortgage rates are down to 5.8 and falling.
Thanks to all the skeptics who talked me out of buying a couple of months ago.
Prices are still falling and interest rates are getting cheaper everyday.
I actually thought rates were going to go down a few weeks back when the "doomers" (I think they were the ones to say to wait since high rates = lower prices, not the Realtors)... do I get a cookie
Anyhow... in the short-mid term rates might be down and level off (as the "level" of risk is figured out)... but in the longer term, rates will have to go up (as "investors" shun treasuries and demand a higher return). We'll see how lower rates and lower prices play out in eating up inventory. Today's reading on consumer confidence went up :P
Hopefully those still waiting can find that "sweet" spot where rates are low, and prices are low.
I actually thought rates were going to go down a few weeks back when the "doomers" (I think they were the ones to say to wait since high rates = lower prices, not the Realtors)... do I get a cookie
Anyone who can make an accurate prediction in this market deserves a cookie the size of his/her head!
'''The longer you wait, the more equity you're throwing away. If you're renting while you wait, the more money you're throwing away paying someone else's mortgage helping them get equity in their property.''''
Attention realtors. This above is a good example of someone making you all look bad. Doesnt even bother to ask where the OP is located at. What if they are in a declining area where home values continue to drop? How is that for 'throwing equity away'?
Lot's of postulation by talking heads. Price equates to value. Buy a home if you choose as a place to live..nothing more. This is an emotional purchase. If renting is where you feel comfortable, then I hope you also find something you can be comfortable in for a few years and may you find a competent landlord. Rates are low....jobs are down....people are scared. No one can predict the future.
Doesnt even bother to ask where the OP is located at. What if they are in a declining area where home values continue to drop?
The OP made BLANKET statements. They were not talking about their specific location. I am in Texas, and every study done in every part of Texas shows appreciation each and every year. We did not have a bubble, and do not currently have depreciation. I gave an answer that relates to me, and more areas of the country than you would think.
National news has everyone scared to death, but the real story is that only a handful of states and areas are actually having declining markets. Yes, everyone is having foreclosures, but just because there are foreclosures doesn't mean the market throughout that area is bad.
Dallas had about 5% appreciation the past few months, and Austin has had 8%. I wish I could readily find the link with those numbers, but they were published not too long ago.
Lot's of postulation by talking heads. Price equates to value. Buy a home if you choose as a place to live..nothing more. This is an emotional purchase. If renting is where you feel comfortable, then I hope you also find something you can be comfortable in for a few years and may you find a competent landlord. Rates are low....jobs are down....people are scared. No one can predict the future.
HORRIBLE advice. You sound more like a talking head with your 'stick your head in the sand and all will be well' solution. Buy a home when it makes financial sense and puts your family in a good position. In some areas, if you wait, you will have more money for kids college, vacations and nicer clothes than the dufus that purchased now. Don't get emotional about it. Be rational and make sure the numbers work.Nice how you forgot to mention in some areas values continue to drop. In my area it's easy to predict the near future when foreclosures keep coming in, values keep dropping and DOM is increasing.
What do you want to be show exactly? The data for the majority of markets is readily available. In many markets the monthly cost to own is far higher than to rent. But, I will give you a real example. A family member currently rents a condo for $2,000/month, if you were to purchase such a condo right now it would be $400k. Even with today's interest rate (5.7%) and a 20% downpayment**, the PITI here in California would be $2,500/month. The renter saves $500/month, which is greater than the equity you'd be building as an owner for many years. But add in the fact that prices in CA are still declining and the renter comes out smelling of roses.
In many markets it is actually "throwing away money" to buy a place rather than rent. Realtors always want to throw around the old "renting is throwing away money" idea, but its highly misleading even in a number market. Money spent on Tax, Insurance and interest is no different than rent. It takes many years to pass before you start to pay down a significant part of your principle each month. But in a market that is declining, and where it is often cheaper to rent than buy the idea is ridiculous.
**Just to note, the opportunity cost associated with the 20% down in the long term is about equivalent to the tax deductions you'll receive (The money would compound, where as your tax deduction is reduced each year). So, we don't need to go into the tired lines about tax deductions.
Ok, then lets say that in 30 years the property doubles in value. It's now an 800k property that is completely paid off. That $500 a month you save (which we know rent will go up eventually but the mortgage won't) equates to a saving 180k over 30 years but you own nothing. When subtracted from the 800k that means the buyer came out ahead 620k over the renter.
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