Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
2. Interest rates may increase significantly, as it will be difficult for Washington to continue to hold them this low.
3. The $8,000 first time buyers tax credit may be extended past December 1.
4. The $8,000 first time buyers tax credit should be treated as a bonus, not as a leveraging tool to buy.
5. Don't get hyped up by "IT'S A GREAT TIME TO BUY A HOME!" or "TIME TO GET OFF THE FENCE!"
The decision to buy a home is a very personal one, and you should consider your very personal circumstances when coming to a decision.
Edited to add: All, of course, in my personal opinion.
Last edited by MikeJaquish; 05-08-2009 at 07:42 PM..
I agree wholeheartedly with the 'sit tight' approach. I waited 4 years to jump back into home ownership when I first moved here in early '02. I had the down payment but did not have a stable job. And that, IMHO, is a very important thing to have as well as a big enough cushion in savings AFTER you purchase a house to cover you through at least 6 months of living expenses in the event of a job loss. There is no reason to jump in now if you don't have that peace of mind and cushion in place.
If I were in the market for a home, I would be comfortable with buying now. This area never really had a "bottom" per say. It just kind of got stagnent for a while. Still is, but signs in the overall economy show we are starting to turn the corner. I doubt prices will leap higher, but inventory will likely shrink and this is a good thing for us all. Trying to time the absolutel bottom is 9 of 10 times not a possible venture. If you don't hit the exact bottom, buying now has to get you pretty darn close.
Home ownership is overrated anyway....and I don't mean that as a joke either. Rent as long as you can.
IYO, however not in others. I could never imagine renting again. I really enjoy the satisfaction of owning my own home. I am back in a single family again and really look forward to doing my gardening. My wife will be traveling a lot more with her job, so it will be great having a nice chunk of land again to be creative in. I still don't care for the mowing part, but I do love my creative side coming out with landscaping. Home ownership brings me such joy. We are thrilled with our new home, even though it is no longer in the greatest town in America. At least it isn't all that far away, so we can still shop and dine in Cary.
I would like to thank CarolinaCowboy in particular for enlightening me as to what the future holds for our country, which was the turning point in our decision to move back to a single family home with land now, rather than later. You my friend, are a freakin' genius. You were spot on with so many things. I didn't think so at first, but once I started researching what you were posting, I couldn't believe it. We are now ready for the storm. I fell pretty bad for the folks that will be left standing without their dream home, as they probably will not be able to get it down the road. That's why I would suggest that anyone that can easily afford a home would be almost foolish not to buy it now. I am so glad we did. Thanks CC.
The market has slowed tremendously over the last few years as buyers and sellers get further away from each other on what a reasonable price is. There's no real sign that's changing, and when it does, history says it will be the sellers that give in. There's small signs that this is starting to happen at the edges, as we've gone from our historical inflation + 0.5% increases (i.e. 3% a year or so) to drops of 3-5% over the past year on average. The most likely trend over the next several years is for that trend to continue as we try to clear out the huge amount of inventory sitting stagnant on the market.
Sure, this market could be immune from normal supply and demand economics, but I wouldn't bet on it.
I have recently sold 2 homes that were priced around the $170s. In both cases, these homes were beautifully maintained and showed well. One had been on the market only 3 days and the other had been on the market 30 days. Both had multiple offers. In one, we actually paid $100 over list price. The other, we paid pretty close to list price. Both of my buyers were cash sales and could close quickly so that got us both homes. We did not have alot of inventory to choose from, in this price range.
I am seeing homes under $200,000 selling very quickly now. I am hearing from other Agents in my office that they are seeing more homes selling and more multiple offers.
I am also seeing less inventory from home builders. Some are having financial problems and some are just not building as many homes until they have buyers. The "New Homes' magazine has SHRUNK tremendously.
Could we have reached our "bottom" and heading up? Well, the signs are there in this price range.
So, for those people that need a home, have a stable job, with at least 3.5% down payment, now could be the time for them to buy. However, if you are just not ready, then do not allow anyone to convince you that you must buy now. Do what is right for YOU. By the same token, do not let anyone convince you that now is NOT the right time to buy. Your circumstances will dictate that!
So, for those people that need a home, have a stable job, with at least 3.5% down payment, now could be the time for them to buy.
Vicki
Vicki, this is not directed at you. But it just KILLS me that 3.5% down is STILL all that is needed. Yes, this is better than 0 down. But come on people (and by people I mean bankers). My husband and I felt lucky when the down payment norm dropped to 10%. Of course you still needed PMI, which was NOT a tax write off, which got my panties in such a bunch. BUT in retrospect, knowing we had to shell out PMI each month w/out a tax deduction MADE us really consider if we should buy or wait 'til we saved 20% down. We determined it was a good investment and would increase enough in value in 5 years to get rid of PMI.
I really thought having PMI as a write off was a good thing. Now I'm not so sure given the loose lending standards that STILL exsist. Yes, I know you have to have really good credit to get a loan today. But imho, one s/ have good credit AND a decent down payment. And 3.5 % is not a decent downpayment.
Vicki, this is not directed at you. But it just KILLS me that 3.5% down is STILL all that is needed. Yes, this is better than 0 down. But come on people (and by people I mean bankers). My husband and I felt lucky when the down payment norm dropped to 10%. Of course you still needed PMI, which was NOT a tax write off, which got my panties in such a bunch. BUT in retrospect, knowing we had to shell out PMI each month w/out a tax deduction MADE us really consider if we should buy or wait 'til we saved 20% down. We determined it was a good investment and would increase enough in value in 5 years to get rid of PMI.
I really thought having PMI as a write off was a good thing. Now I'm not so sure given the loose lending standards that STILL exsist. Yes, I know you have to have really good credit to get a loan today. But imho, one s/ have good credit AND a decent down payment. And 3.5 % is not a decent downpayment.
edit: sorry for the rant.
Loose lending standards will ALWAYS exist. People can pretend that one side or the other will bring real "change", but in reality it's about getting votes. Getting every voter into a house gets votes. It will never change, so as a buyer it is best to take advantage of the situation if YOU feel you want to own a home. Right now has a combination of gubment give-a-aways unseen in history, so it only makes sense to cash in on it as a buyer. Remember, the gubment will take it back in other ways, so do you only want to pay or do you want to get something for it. FWIW, I am with you. 20% down on all homes and have a good credit rating.....PERIOD!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
