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My advice is to buy now. I am getting ready to sell my house on Long Island and having seen the value drop quite a bit, I am not going to lower it any further. I'll put it on the market and if I get my price, I'll sell. If not, I'll wait it out. I am not in a rush fortunately. The market will rebound as it has done many other times. We may not see values as we did during the "bubble" but they will eventually go up. If you are able to buy now, you are in an extremely fortunate position. Mortgage rates have never been this low and houses are undervalued. I don't understand why the real estate industry isn't using mass advertising to get this point across. Buyers think homes will be even lower next year but sellers just are not going to give their houses away.
My advice is to buy now. I am getting ready to sell my house on Long Island and having seen the value drop quite a bit, I am not going to lower it any further. I'll put it on the market and if I get my price, I'll sell. If not, I'll wait it out. I am not in a rush fortunately. The market will rebound as it has done many other times. We may not see values as we did during the "bubble" but they will eventually go up. If you are able to buy now, you are in an extremely fortunate position. Mortgage rates have never been this low and houses are undervalued. I don't understand why the real estate industry isn't using mass advertising to get this point across. Buyers think homes will be even lower next year but sellers just are not going to give their houses away.
If I had a home to sell I would also advise that it is time to buy now
This is the perfect time to low ball as savy sellers know there's no rebound on the horizon and will adjust to this reality to attract buyers. Those sellers who adjust (lower) prices dramatically to reflect the dramatic changes in the bloated inventory, historic unemployment, the depressed economy, etc. will sell. Those who cling to a mystical belief of what their home is 'worth', don't downward adjust each month, and won't 'give their home way' - ain't selling. They ain't selling now and they won't be selling three years from now.
If I had a home to sell I would also advise that it is time to buy now
This is the perfect time to low ball as savy sellers know there's no rebound on the horizon and will adjust to this reality to attract buyers. Those sellers who adjust (lower) prices dramatically to reflect the dramatic changes in the bloated inventory, historic unemployment, the depressed economy, etc. will sell. Those who cling to a mystical belief of what their home is 'worth', don't downward adjust each month, and won't 'give their home way' - ain't selling. They ain't selling now and they won't be selling three years from now.
Homes are not 'undervalued'. Homes that are not selling, are, by definintion, overpriced for the market.
If I had a home to sell I would also advise that it is time to buy now
This is the perfect time to low ball as savy sellers know there's no rebound on the horizon and will adjust to this reality to attract buyers. Those sellers who adjust (lower) prices dramatically to reflect the dramatic changes in the bloated inventory, historic unemployment, the depressed economy, etc. will sell. Those who cling to a mystical belief of what their home is 'worth', don't downward adjust each month, and won't 'give their home way' - ain't selling. They ain't selling now and they won't be selling three years from now.
My advice is to buy now. I am getting ready to sell my house on Long Island and having seen the value drop quite a bit, I am not going to lower it any further. I'll put it on the market and if I get my price, I'll sell. If not, I'll wait it out. I am not in a rush fortunately. The market will rebound as it has done many other times. We may not see values as we did during the "bubble" but they will eventually go up. If you are able to buy now, you are in an extremely fortunate position. Mortgage rates have never been this low and houses are undervalued. I don't understand why the real estate industry isn't using mass advertising to get this point across. Buyers think homes will be even lower next year but sellers just are not going to give their houses away.
Doesnt anyone follow the financial markets on the thread???? On Sept. 20th, Bernanke may very well re-allocate short term treasury notes to 10 yr notes or longer - - now is NOT the time to low-ball or buy!!!!!!!!!!!!
Doesnt anyone follow the financial markets on the thread???? On Sept. 20th, Bernanke may very well re-allocate short term treasury notes to 10 yr notes or longer - - now is NOT the time to low-ball or buy!!!!!!!!!!!!
Bernake is the head of the Fed, not the Head of the Treasury, and it's the Treasury that choses what duration, 2-year, 10-year, 20-year, and, possibly, even 50-year, paper it wants to sell at public auction. In the absence of public demand, then it's the Fed that buys the Treasury offerings by printing paper, thereby monetizing the debt, which oftentimes is inflationary.
Doesnt anyone follow the financial markets on the thread???? On Sept. 20th, Bernanke may very well re-allocate short term treasury notes to 10 yr notes or longer - - now is NOT the time to low-ball or buy!!!!!!!!!!!!
Good point. I concur with your assessment and here are my reasons:
1. According to a Bloomberg story tonight Germany is starting to prepare itself for a Greek default. If Greece defaults it is a near certainty the entire European region will slip into recession. Germany May be Ready to Surrender Over Greece - Bloomberg
2. Layoffs in the financial sector are heating up again, rumors that BofA will announce 40000 shortly. These layoffs will hit the high end of the market. In August the asking price for high end real estate (top quartile) dropped meaningfully.
3. Earnings expectations for the S&P500 are being reduced for the first time in 2.5 years reflecting the slowness in the economy.
My opinion is we are slipping into a recession. I'd hold off a couple of quarters before plunging into the RE market.
My advice is to buy now. I am getting ready to sell my house on Long Island and having seen the value drop quite a bit, I am not going to lower it any further. I'll put it on the market and if I get my price, I'll sell. If not, I'll wait it out. I am not in a rush fortunately.
The key point in your strategy is that you can afford to wait - no matter how long it takes.
Sellers that need to sell (& cannot wait it out - 2, 3, 5, ? years) face the so called "Concorde effect"/sunk cost effect.
Just like it was a difficult decision for Europe to stop or to continue with the money-losing expensive Concorde plane (or a local example would be the case of the Shoreham nuclear plant or some in Texas), it is very hard to think back what you paid for a house and to feel like "giving it away" as the prices are dropping...
If a seller needs to sell, but refuses to sell just because of past losses, things just worsen. One has to shunt the past losses, as much as it hurts, and assess things ONLY based on current market and potential future losses to make a decision.
My guess is prices are still going to go lower...I see more and more homes for sale and I don't think they will sell unless the prices come down even more..
I also, just last week, spoke to a lady who sells multi-million dollar homes in the Hamptons and has been for decades....I asked her how business was and she told me it is just "ok" but only due to even the very rich have lowered their prices a lot in order to sell.....told me even Billy Joel dropped his house price by a huge amount in trying to sell it..
I feel if you are looking to buy in area where there are jobs maybe prices will stablized some but I am out on the north fork and there are hardly any year-round good paying employment opportunities out here. So those homes I have seen for sale for many, many months I don't think will ever sell unless the seller drops the price even more.
Good luck!
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"Concorde effect"
