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So who the hell knows. I mean yes prices will keep dropping maybe, but eventually they will come back up.
Maybe? What data or news suggests for EVEN a second we are at the bottom? Every market in the CS data is down by records amounts from last year. Dec07 over Dec08 prices are down by a record % in history. And you say Maybe they will keep dropping?
Surely prices will come back up one day. But that is like saying that you will die one day. WHen it happens is very hard to pinpoint and odds are not for a long time.
I don't know about the rest of you, but personally speaking, I did not purchase my home w/ the intention of one day "cashing" in on it. I wanted a home where I could grow old and make memories w/ my family, a home where we could all gather for holidays and share good times. Never was my intention to one day see my home be worth a gazillion dollars and be it my retirement plan. I don't check to see what my home is worth on the market, granted, I'm not planning on moving anytime soon (knock on wood, I hope it never happens either). So it doesn't matter if home prices are declining now or if they will go up in the future, in the end you can't take it w/ you when you die. You just hope that when you pass it along to your decendants they're able to enjoy and prosper w/ the decisions you made today.
I don't look as my next house (or any house) as a lottery ticket for when I retire. But I do look at it as an extra nest egg so to speak. I am in my early 30's. I plan to buy this year what I consider my house for life. Now sure I may move in the future but I am hoping to keep this next house regardless since this area is where my family is and everything. So if I buy now and hope to pay the house off in say 10-20 years. (depends on how much I spend and job situation etc...) So when I am around 50 I should have a SMALL payment for property taxes versus a mortgage + property taxes as my monthly expense. So that is a major benefit #1. Then the 2nd bonus is when my wife and I retire... Do we want to stay and live there until we die? Do we want to move and live somewhere else? We will have several options and selling that house will offer us an extra chunk of change to do it. Reverse mortgage is even an option if we need to tap into the equity in the home.
So I won't be depending on expecting a major cash out but it will be an extra level of security and option to bring cash to me at some point. But those reasons are secondary and very long term thinking.
The same guy who declared "we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system" back in 2007?
Why would anyone not take his word as the genius truth?
He is at best a fool, at worst a liar.
We have had the misfortune of having two dolts at the Fed back-to-back.
Greenspan let the genie out of the bottle, Bernanke didn't notice until the genie smashed him in the face with a sledgehammer.
I don't look as my next house (or any house) as a lottery ticket for when I retire. But I do look at it as an extra nest egg so to speak. I am in my early 30's. I plan to buy this year what I consider my house for life. Now sure I may move in the future but I am hoping to keep this next house regardless since this area is where my family is and everything. So if I buy now and hope to pay the house off in say 10-20 years. (depends on how much I spend and job situation etc...) So when I am around 50 I should have a SMALL payment for property taxes versus a mortgage + property taxes as my monthly expense. So that is a major benefit #1. Then the 2nd bonus is when my wife and I retire... Do we want to stay and live there until we die? Do we want to move and live somewhere else? We will have several options and selling that house will offer us an extra chunk of change to do it. Reverse mortgage is even an option if we need to tap into the equity in the home.
So I won't be depending on expecting a major cash out but it will be an extra level of security and option to bring cash to me at some point. But those reasons are secondary and very long term thinking.
You can't, you have to look at it as a place to live...
You can't, you have to look at it as a place to live...
That's true, but just thinking of it that way without any other factor is kinda dangeous, especially in today's troubling times.
You sink a lot of your own money into your home, and there is no way anyone can predict with certainty what will happen to you in the next few years or decades. You could get laid off tomorrow, or next week, or you might be reassigned to another location.
In which case, it makes all the sense in the world to move with caution and reason when committing so much of your wealth to one object. You need to treat your house not only as a home but as an asset, and you need to manage it wisely.
You cannot treat your home as an investment. I didn't put anything into my home thinking it would raise the value. It doesn't, it's that simple. Your house will only go for what similar houses in your area go for.
You shouldn't be looking at a home if your job is in danger.
The warning signs are there and one should listen to them if they are getting them.
If you are in the market to buy a home you plan on living in, then by all means, buy it. Just don't plan on flipping it or making a fortune on it if you want to sell quickly.
It is a place to live and think of it that way factoring in the facts of if you have a stable job or not. I'm certainly not saying jump in with blinders on, but if in a position to jump in, then why not?
I think the key thing is individual circumstances. For me (I sold my house 5 months ago - am renting) I miss owning my own home (have owned for 30+ years). I sold because we plan to retire and relocate in the next year. Plan to buy in the fall, knowing full well prices could drop some more - but we plan to stay put for the long term. I always thought of my home as a place to live - however, as an investment - over the long term it was good - will pay cash when we buy again, enabling us to live fairly cheaply in retirement.
For my son on the other hand, who is saving for a downpayment - I would advise him to wait, because his circumstances are such that he may need to move within a few years. I think everyone has to think over their own unique position carefully. For some, why not take the plunge now - for others maybe best to wait.
Existing home sales sink 5.3 percent in January in weakest month since July 1997
January existing home sales fall by 5.3 percent - Yahoo! Finance (http://finance.yahoo.com/news/January-existing-home-sales-apf-14464459.html - broken link)
Sales of existing homes unexpectedly plunged in January to the lowest level in nearly 12 years as pessimism about the economy grew and buyers waited for President Barack Obama's plan to help revive the U.S. housing market.
The National Association of Realtors said Wednesday that sales of existing homes fell 5.3 percent to an annual rate of 4.49 million last month, from 4.74 million in December. It was the weakest showing since July 1997, and some analysts don't see sales bottoming out until later this year as prices continue to sink. Sales had been expected to rise to an annual pace of 4.79 million homes, according to Thomson Reuters.
sales of existing homes....an annual rate of 4.49 million last month
4.49 million
s o l d
that's all you need to know...
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What data or news suggests for EVEN a second we are at the bottom? Every market in the CS data is down by records amounts from last year. Dec07 over Dec08 prices are down by a record % in history. And you say Maybe they will keep dropping? 
January existing home sales fall by 5.3 percent
