The Irony of "Buy Now" or "Wait" RE scenarios

[Heidi60]

Originally Posted by cohdane

I'd venture a guess that if you split responders into two groups-- real estate industry folks and everyone else, you'd see that the first group almost always says it's a good time to buy. In fact, not just a good time to buy, but a GREAT time to buy and you should do it right away because these terrific conditions won't last.

In the second group, the opinions probably shift from "buy" to "don't buy" and back way more often and hell, sometimes they probably even give an answer as utterly insane as "it depends...."

Originally Posted by meh_whatever

^^Agreed.

Originally Posted by MikeyKid

The issues around home values could be debated endlessly, but ultimately it's a decision that should not be made for you... Whether it's fuzzy math, playing to your emotions, or easy credit; nobody has the ability to answer this question based on your own personal unique circumstances.

I will say this - buying / ownership (do you really "own" a property an investor holds 96.5%+ interest in?) is certainly no longer the home run it once was... Once you come to grips with that then consider the external factors that impact your ability to pay back the note (inflation, rising taxes, employment, etc), the stability of the neighborhood should you be required to sell sooner then expected, surrounding yourself with honest / knowledgeable professionals you can trust (hint: not on some anonymous forum), and use plain old simple common sense.

Saving my typical rants...

Makes sense to me! Great posts.

[NOLA2SGF]

Originally Posted by jghorton

Over the past few years, we've been in/out of the real estate market, depending on our need ... numerous times. At the moment, we happen to be back in the market (cash, need, opportunities, etc).

As I've sought-out the knowledgeable advice of others regarding whether this is the time to 'buy or wait,' I've made an interesting observation:

There are invariably an equal number of proponents on either side of the same continually re-hashed arguments -- It doesn't matter whether it's 2001 or 2011! Only the perspective changes: "Have we reached the peak/bottom yet?" --"Will prices continue to go up/down?" -- "Is this the right time to sell/buy?" -- (Google the subject and you will find the same opinions ... regardless of the date).

It seems like the bottom line is: 'Everyone has an opinion ... surrounding 360-degrees of any issue (just read your daily newspaper editorials) ... AND, nobody really knows what the future holds, or at least, how to determine which of the myriad of opinions have any reliable value.

So, what is the answer? Is NOW a good time to BUY or Wait?

I think I have a different perspective. I am just an individual, not a realtor.

Are you are certain that you will want to live in the same location for at least 5-10 years or more?
Are you are happier in a house that you own than in one you rent?
If the answers to both of these questions are "yes", then NOW is a good time to buy.

In 20 years I doubt you will care if you bought at the exact bottom of the market or just near the bottom.

Don't spend your precious years of life renting if you can afford to buy and your heart tells you that you should buy. Likewise, don't buy if you would be happier renting and you can afford to do so. Decisions like this affect your quality of life in the long term, and that quality of life may be of greater value to you than any slight savings you may gain or lose by waiting. As always do not back yourself into a corner financially, but barring that concern I would not be too concerned about whether or not today is the exact bottom of the real estate market in your area.

[RiverBird]

My perspective is different, as I am over age 60. All my "senior" friends who own homes are looking to sell and move to some new location or to just downsize. The huge wave of boomers whose houses are going to come on the market are going to flood the market imo, in addition to any future foreclosures, during this decade. When this happens, prices will go down as inventory will be way up. For some (depending on age), I think it's better to sell now, to get the optimum price before the flood. This of course depends on locale. Where I am the RE prices are holding well. In other areas, like where my sis lives in Hagerstown MD, this is not so true. I don't see prices improving much for sellers over the next decade, it will be at least flat if not worse. Just being realistic.

In terms of buying, I agree with the post just above this one.

[FlightAttendant]

Interesting thread. I just put an offer on a short-sale, at the top of my price range but a really, really pretty house. However, even though my offer was on the low side, I will not go above $7K more than my bid (which is about $15K under asking). Will I be disappointed if I cant close this deal? oh yeah. Will I go higher? no. Even thought my area is a hot real estate area, I recognize my tip top price and I refuse to go higher and become house-poor. So...I will buy now, but only if the short-sale bank is willing to bend. (lets hope )

[miyu]

It all depends on employment location. If I had a steady job offer in a location I'd be more inclined to buy. For now, no. Might have to pick up and move in a few years.

[tandasullivan]

Time the market? 33% of closings today are cash buyers / investors. Interest rates are low and I am looking for another investment property. I am an agent. You can draw your own conclusions from there . . .

Remember - rental income is one source and appreciation another.