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Yawn. The way people in the U.S. propel themselves into financial disaster, I don't think the fact that people are looking to buy 500K houses tells us anything about how healthy their financial situation is. All hat, no cattle.
The difference is that the rope people are being given to hang themselves with is getting harder and harder to come by every day.
yeah, its good to see that its tougher to get these loans. if it would have been this way all along, we wouldnt be in the situation we are currently in.
yeah, its good to see that its tougher to get these loans. if it would have been this way all along, we wouldnt be in the situation we are currently in.
Way too many people are still using FHA backed loans with 3.5% down. Someone in congress that was mildly intelligent pushed to increase the min. down payment to 5%. Guess what? Last week it got shot down.
If our government was a drug dealer, they'd be passing out drugs for people to kill themselves with. They really should be consider a financial disaster 'enabler'.
Way too many people are still using FHA backed loans with 3.5% down. Someone in congress that was mildly intelligent pushed to increase the min. down payment to 5%. Guess what? Last week it got shot down.
If our government was a drug dealer, they'd be passing out drugs for people to kill themselves with. They really should be consider a financial disaster 'enabler'.
the more you involve government in the decision making, the worse the decisions you get. they are motivated by their own politics and wallet, not by whats right. its sickening.
it looks to me that there are plenty of people that are doing just fine in NJ. i have read several threads asking for help looking for houses in the 400-500K range. Thats some healthy paychecks.
Well thats about as scientific as it gets. A few people bought a house and the worlds woes are cured.
If you can afford it and are gonna live there a long time, it still does matter. You could potentially save like $500 a month for 30 years.
Sure, if you can afford to wait a few years or more before buying a house. When you're married, a 500 square foot 1BR apartment just doesn't cut it. That's why (among many other reasons) we decided to buy this year and we're planning to stay potentially "forever".
If you can afford it and are gonna live there a long time, it still does matter. You could potentially save like $500 a month for 30 years.
The main driver of price drops from here is going to be rate increases. So if you wait, you'll end up paying much the same payments unless you buy with a larger down payment or pay the loan faster.
I think it actually looks pretty bad for potential buyers now. You won't make a huge gain by waiting a year.
If you are willing to rent for the next 5 years, you could do well (may be true in your case). If you really want to buy in the not too distant future, you're kind of stuck.
The main driver of price drops from here is going to be rate increases. So if you wait, you'll end up paying much the same payments unless you buy with a larger down payment or pay the loan faster.
I think it actually looks pretty bad for potential buyers now. You won't make a huge gain by waiting a year.
If you are willing to rent for the next 5 years, you could do well (may be true in your case). If you really want to buy in the not too distant future, you're kind of stuck.
While i think there is some truth to what you say, you are also not totally accurate. Job losses and an explosion or foreclosures are likely to push real estate prices down in NJ over the next year. The Fed reserve has already stated they will continue to buy MBS until at least March. After March 2010, it's anyones call as to where interest rates are going to go, but most analysts feel an increase to the high 5% to perhaps 6% range is possible for the later part of next year.
So my point is the increase rate increase increase will probably not totally offset the decline in home prices.
Not sure what you are seeing in your part of the state, but in mine and I seeing a lot of heavily discounted properties as people try to unload them before they loose the ability to pay for them. I say by next summer we'll see another 10% loss in home values in greater part of our state.
unfortunately, this looks about right. Slow bleed from here. If you're a potential buyer and you want to defer your purchase until prices are back to historical norms, you'll be waiting until ... when ... 2013 or so ? If you knew that we had a bubble back in 2003 and decided to wait for the bubble to burst, you'd be waiting 10 years.
Oh, add to the misery, prices are satgnating even in teh "good" areas, but I do not thing we will be seeing many of them drop all too soon. At least, not on the "good" stuff (like Brownstones in Hoboken, or classics in Ridgewood.)
The popcorn condos and tract development in many areas is probably going to get hit the hardest, with fringe "gentrification" properties being right there with them, but in looking around ourselves, many people are getting locked into their current property for fear of a fiinancial loss in the sale of it.
Housing prices are not falling in sync, so it is very hard to say what is the best time to switch as a general statement.
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