[oceandreams94]

Hello everyone, I need your opinions. We have now been in Palm Coast, Florida for 9 months and we still love it.
We are wondering whether we should go ahead and buy a home after our lease is up the 1st of July.
I have been in touch with a few realtors who of course say that it IS the best time to buy, and they have told me that since we would be first time home buyers that we can get a loan with no problem at all.
I see tons of homes for sale here, for pretty good prices.
We would actually prefer to buy the house that we are living in right now, and that would be our first choice, but I am not sure what the owner wants to sell it for.
So my question is, would you buy now or continue to rent for another year?
Will prices continue to fall or will they start to rise? We want to get the best deal that we can.

[Wendyb0077]

It's really hard to say what you should do. I don't know how Foreclosures are in your area, but in this area (Port Saint Lucie) they are setting the market price. Do research on the market. See if your local tax assessors office has a website to check out recently sold properties. That is the best way to guage the market. The local MLS only shows a partial picture of what is happening since a number of homes sell without a real estate person. If the market is flooded with homes and not much sales. I would say wait! Good Luck and I hope you make the right decision for you. Wendy

[AONE]

I would find an agent you like and ask them to find a good deal in the area. often home owners have an easy mark and rarely will price correctly. You may get much more for the money in another home. In my area I always aim to find what someone wants coupled with a great value. There are many good deals around now so it is a good time to buy and with Interest low again there are many pluses to owning. Things to watch out for.... mass exodus in a neighborhood - excessive inventory in an area, this can lead to falling prices and value. sq footage for the money, quality of construction... some builders in the boom put up some pretty bad homes. Be aware of insurance for an area as well. Good Luck.

[Hero]

Originally Posted by oceandreams94

Hello everyone, I need your opinions. We have now been in Palm Coast, Florida for 9 months and we still love it.
We are wondering whether we should go ahead and buy a home after our lease is up the 1st of July.
I have been in touch with a few realtors who of course say that it IS the best time to buy, and they have told me that since we would be first time home buyers that we can get a loan with no problem at all.
I see tons of homes for sale here, for pretty good prices.
We would actually prefer to buy the house that we are living in right now, and that would be our first choice, but I am not sure what the owner wants to sell it for.
So my question is, would you buy now or continue to rent for another year?
Will prices continue to fall or will they start to rise? We want to get the best deal that we can.

oceandreams94, for the past year, I too have been thinking about buying. I have learned these truths during my research:

1. Realtors will always tell you now is that BEST time to buy. That's basically their job. I value their prediction as much as Ms. Cleo's.

2. No one really knows where the price will head. Consensus now is that it'll fall even more. But then the consensus during the boom was that prices would keep going up. Again, no one knows, not even the "experts."

3. Most sellers are in denial. Their homes have no showing in months and they're still scratching their heads why.

4. Some sellers are not in denial, want their homes sold, and will price it accordingly. These sellers might give you a great deal by today's standards but to say it's the best deal years from now is impossible. See #2.

Beware of being too eager to buy the house you're currently renting. If you can buy, it probably means you have money or a stable job. If the renter knows you have money or a stable job, he might increase your rent. The plus side is that you'll fair better than most people if a recession hits. For me, I am currently too happy saving several thousands a month by renting. So I won't be buying unless either prices or my price range drops. Best of luck!

[Lilybeans]

If you want to buy, now isn't a bad time. At least in Martin County houses are starting to sell again.

[wacahootaman]

Home prices are gonna fall further. We are only in the fourth inning of the housing crash.

Economically, it may be better to rent for another year. If it cost you 12 grand to rent for a year and you pick up a home then for 40K less then you make a good economic decision.

However picking the top or the bottom in any market is tricky and since you are buying to live in and not necessirly for an investment, find the place that you love and buy it if possible.(But give em a low offer and you might get it.)

[cfIfan]

I just posted a thread about whether it is a good time to buy. And alot of good points have been made about realtors (Yes i am one and i know were considered the scum of the earth....lol)

I would consider the following, Whilst all the points made are valid ones, the perception has been given by the media that prices will fall dramatically further and that.

Whilst this may be true, i would ask you to consider the following. Prices are currently the lowest they've been since 2004, according to a report. Mortgage rates are approaching 40-year lowsand Mortgage rates remain nearly 1.5 percent lower than they were in 2000. Current market conditions won’t last long. Research shows that prices are beginning to stabilize and price declines are over. A modest increase in property values is expected in 2009.

2007 was the fifth best year on record, despite public apprehension about the real estate market. In fact, 2007 was very similar to the home sales and price gains experienced in 2002, when consumers were very confident about the market.

A modest recovery for existing home sales is expected in 2008. Pent-up demand, coupled with an abundance of safer mortgage products, will lead to near-term market improvements.

All this info is available from various sources including CNN money and i have already added the links to the thread i posted. If a moderator deletes them i would be more than happy to forward them to anyone.

I would recommend that you look in your own particular area and consider, is this a long term investment for you and are properties in your price range. If so then go for it. If not continue to rent and wait.

I tell my clients that at the moment there is uncertainty in the market and alot of this has been brought about by the media. If there were certainty then people would know prices would be going up and people would buy thus driving prices up. the uncertainty can only be a good thing for buyers at the moment to keep the prices low. Consider, those wh osay wait, may be investors wanting to buy rock bottom and sell. If your buying as a home, then it will be a long term investment, which with current pricing you would still make money on at some point in the future. If were talking as someone mentioned $40,000 drop, then sure if your intending to buy now and sell in the short term a $40,000 would be profit. Of course no-one wants to pay more than they have to, but i find it hard to believe people would rather rent than buy. We were renting for a year and closed on our home in December, and as a homeowner i love the freedom to do what i like in MY OWN home. I wouldnt rent again unless it was unavoidable. Just a thought to consider.

[LingLing]

Originally Posted by Wendyb0077

It's really hard to say what you should do. I don't know how Foreclosures are in your area, but in this area (Port Saint Lucie) they are setting the market price. Wendy

I agree with everyone here. It is hard to predict what will happen. Whether you buy or not, it is your decision based on your financial situation and long term plan. In the case of PSL, low housing price and low rent have attracted many people. My neighbor's friends (two couples) were planning to retire in TN. Now they both are looking at Tradition, PSL. Like everyone else, they decide to rent first. The low rent allows everyone to spend time to figure out whether they like PSL and what kind of floor plan would be the best for their life style. If I had a luxury like this, I would rent different houses with totally different floor plans, then decide what to buy. I recently fall in love with a courtyard style house in PSL. When entering that house, you would run into a beautiful courtyard with pool/spa surrounded by all the rooms. I think it would be perfect for my dog so she wouldn't be exposed to strangers when we aren’t at home. Well, too late for me. I already have a house. If that house fall another 50% (probably would never happen), I may make an offer .

[Wild Style]

This might give you some idea of how to judge for yourself when to jump in. I have realtor friends and I assure you, they have no clue what is going on right now. It would be better to read what economist are saying. Whoever you listen to, you make sure they know this was a bubble from 2003/2004. Anyone who didn't recognize that isn't worth really listening too in my opinion

link

[jbravo]

Originally Posted by cfIfan

I just posted a thread about whether it is a good time to buy. And alot of good points have been made about realtors (Yes i am one and i know were considered the scum of the earth....lol)

Current market conditions won’t last long. Research shows that prices are beginning to stabilize and price declines are over. A modest increase in property values is expected in 2009.

A modest recovery for existing home sales is expected in 2008. Pent-up demand, coupled with an abundance of safer mortgage products, will lead to near-term market improvements.

Maybe the last two paragraphs I quote explain the first.
Why not quote Case-Schiller index? Why not mention current inventory?
How about the fact that this bubble started in 1999?
How about a report from the FED from 2003 (yes, 2003!) that mentions that the markets were in bubble territory?
How about that for over 100 years there was a correlation between house prices and personal income? (usually 3X income, this was even mentioned in CNN)
How about that rental prices and Real estate prices have a STRONG Historical relationship (about 100x - 120X monthly rent)
Why would an investor buy a house to get less than a 2-4% return or LOSE money?
I can offer citations to ALL the above, in fact multiple citations.
Sorry, but Realtors reputation's are well deserved.
I have plenty of cash and prefer not to throw away my $$$ by buying in 08.
I didn't even mention the possibility of a strong recession and the effects that would have on a "recovery."
I sold in 04 everything I had in South Fl, it was SO easy to see it was a bubble. Bought a small inexpensive house in Mt. Dora Fl (paid cash) sold 2 years later (still made money) built in 07 on a lot I bought in 06 (broke even on that.
I'll rent now.
The nice thing about a blog / forum is that in 2 years we can read what we just wrote and see who was right.