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I had previous forums that got closed because people started getting upset. But let me clarify one thing and go check my previous post to validate. I never said now wasnt a good time to buy , I said ,and still stand by, house prices are declining because they are over priced. With a 57% appreciation rate in 5 years in pierce county who knows the intrinsic value on a house and what prices arenormal/Sustainable? According to historical appreciation rates in 5 years your home should appreciate no less than 15% (3% a year) and no more than 25% (5% a year) but 57% in 5 years results in seriously inflated prices and according to other local newspapers it goes up as high as 65% in 5 years. But capitalism is unique. It creates what is known as the zero sum game.....In order for someone to gain someone has to lose. Now my wife and I are getting ready to buy a house near the early 2006 if not late 2005 prices because millions are going into foreclosure and the biggest lender in the US went under...or got bought out if you prefer. And its quite possible we could get a 30 yr fixed for under 5%. So I agree now is a good time to buy, its just a shame that greed always crashes markets. Everything is a function of price and when the builders realize that and hope that the 1 out of 4.5 subprime loans giving out in the Tacoma area wont create alot of foreclosures that will flood the market and the goldrush is over, the sooner they can sell off their standing inventory and start developing the myriads of house foundations with weeds growing over them. I invite those on my misleading post to join in and comment. Welcome back gentlemen I had some errands to run today that I didnt complete until 8pm
Last edited by irrational exuberance; 01-26-2008 at 10:47 PM..
Reason: grammer issues....I need to learn how to proofread
i am happy to read you post. Sounds really true. Do you think it is a good time to buy especially in neighborhoods with lots of houses "for sale"? I am looking at a house that last sold in 2006 for $389,000 and is now being listed for $179,000. i looked at the house and there were no damages, it looked good. I dont intend on putting down any payments towards the loan. do you think i should buy now? my current lease also expires in 2 months so i really need to make a quick decision.
Now is the absolute worst time to buy. We are at the beginning of a steep decline and if you buy now you may not recover.
Now, let me qualify that my statement holds true only for SEVERELY overvalued markets like Southern California that have potential of very sharp declines.
If you are in a place where the home price is $200,000 a potential decline of even 20% isn't going to wipe you out so go ahead and buy!!!
I had previous forums that got closed because people started getting upset. But let me clarify one thing and go check my previous post to validate. I never said now wasnt a good time to buy , I said ,and still stand by, house prices are declining because they are over priced. With a 57% appreciation rate in 5 years in pierce county who knows the intrinsic value on a house and what prices arenormal/Sustainable? According to historical appreciation rates in 5 years your home should appreciate no less than 15% (3% a year) and no more than 25% (5% a year) but 57% in 5 years results in seriously inflated prices and according to other local newspapers it goes up as high as 65% in 5 years. But capitalism is unique. It creates what is known as the zero sum game.....In order for someone to gain someone has to lose. Now my wife and I are getting ready to buy a house near the early 2006 if not late 2005 prices because millions are going into foreclosure and the biggest lender in the US went under...or got bought out if you prefer. And its quite possible we could get a 30 yr fixed for under 5%. So I agree now is a good time to buy, its just a shame that greed always crashes markets. Everything is a function of price and when the builders realize that and hope that the 1 out of 4.5 subprime loans giving out in the Tacoma area wont create alot of foreclosures that will flood the market and the goldrush is over, the sooner they can sell off their standing inventory and start developing the myriads of house foundations with weeds growing over them. I invite those on my misleading post to join in and comment. Welcome back gentlemen I had some errands to run today that I didnt complete until 8pm
Now is a GREAT time to buy, if.. your getting an awsome price even in todays economy.
Looking at a property now, previously sold for $270,000, appraised for $215K, asking price $135K.. How much lower could it go?
Now is the absolute worst time to buy. We are at the beginning of a steep decline and if you buy now you may not recover.
Now, let me qualify that my statement holds true only for SEVERELY overvalued markets like Southern California that have potential of very sharp declines.
If you are in a place where the home price is $200,000 a potential decline of even 20% isn't going to wipe you out so go ahead and buy!!!
Yes, you will see great appreciation if you stay there a number of years. Good resale. It's like the stock market. It will be back again.
Now is the absolute worst time to buy. We are at the beginning of a steep decline and if you buy now you may not recover.
Now, let me qualify that my statement holds true only for SEVERELY overvalued markets like Southern California that have potential of very sharp declines.
If you are in a place where the home price is $200,000 a potential decline of even 20% isn't going to wipe you out so go ahead and buy!!!
I agree wholeheartedly! This is my husband's and my position. People forget that in the past 12 months the housing market in this area (Ventura County) has corrected 27%. However, with that correction, Median home price to median household income is still over 6.5 (in most areas it's 2.5--3.5! So, even if the market corrects another 15% here that is 78K on a median priced home! But, of course, this is my uneducated opinion--a realtor told me the other day now is a great time to buy the bust is over and prices will start to appreciate in the Q2 of 2008. I guess it's time to bust out the checkbook! Yeah, Right!
I agree wholeheartedly! This is my husband's and my position. People forget that in the past 12 months the housing market in this area (Ventura County) has corrected 27%. However, with that correction, Median home price to median household income is still over 6.5 (in most areas it's 2.5--3.5! So, even if the market corrects another 15% here that is 78K on a median priced home! But, of course, this is my uneducated opinion--a realtor told me the other day now is a great time to buy the bust is over and prices will start to appreciate in the Q2 of 2008. I guess it's time to bust out the checkbook! Yeah, Right!
Maybe its me, but I don't understand how an organization can call the bottom and say prices will start improving in Q2 when they and the whole world knows that a flood of negative news will be coming because the majority of arm's will be resetting around that time. Inventory is still near record levels. This will further push prospective buyers to sit on the sidelines and wait. And to make matters worse, you have certain realtors who follow it like sheep and repeat the mantra! Unbelievable......
I really don't think its a could time to buy But.....If you say its a good time to buy a home.. please send someone my way to buy mine!..It was on the market for 9 months and didn't sell.. and we lowered the price as low as we could.. it was a steal compared to normal house sells in our neighborhood.. most houses in our neighborhood sell from $450,000.00 to 700,000.00 or more..we was asking 110,000 less.. just to sell it.
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