Is it a good or bad time to buy a home in the Pierce County? (Seattle: sales)

[Balco9]

Is it better to rent?
I see home prices drop big in certain area's around the country.
Does anyone have any feedback on this topic?
University Place is probably the most expensive area
to live in Pierce County. Do you see home prices dropping
there? I believe we are in a recesssion and worried about
the housing market. Thank you.

[mthomson]

Whether or not it's a good time to buy is really based on your needs. Gig Harbor is more expensive than University Place, but UP is definately up there.
I would say yes, it's a good time to buy, in that our housing inventory is very high, prices are coming down, and loan programs and rates are still very good.
I'd say no, it's not a good time to buy, in that I don't think we're at the end of our slide. If you don't mind renting, and don't mind multiple moves, and don't have the "perfect house" out there on the market, rent.
If you see a house you want and are really ready to own, buy. Will your house immediately appreciate? Doubtfully. But if you're not selling in the next 2 years, it'd be a fine time to buy.

[irrational exuberance]

In yesterday new tribune it reported University Place dropping 17% well actually 16.9% for YOY in February.

[Moderator Cut: Off topic]

[swinters]

We traditionally lag behind the rest of the country and see the drop in value later, then it takes a bit longer to see them come back up. We're now seeing the prices drop a bit but it's doubtful that Pierce County will get hit real bad. There are a lot of jobs and they don't project a serious employment hit, so the demand for housing is there. If your option is to rent, then my advice is to buy - as long as you'll keep the place for a couple of years. I sold a house last fall that I owned on the Ease Side of Tacoma and the family is getting transferred (promotion for them with their company, but have to relocate). They closed last week - got their money back, including improvements, plus paid the sales commissions and other expenses. Basically lived there rent free for almost 6 months. If you'll be living in the place awhile then buy. They're not making any more real estate, so it'll work out. Personally, I'm still investing in real estate in Thurston, Lewis, and Pierce Counties and am not concerned. I'm trying to be smart in the purchases, but will wait it out if it drops a bit. It's not like stock which can drop and never come back up. Real Estate is a supply and demand thing.

[irrational exuberance]

Swinters good point, The major reason I am weary of Pierce county take a nose dive is because of the 1 out of every 4.3 loans taking in Tacoma is subprime. Its number 10 on the cities with the most subprime loans and if you take a look at the other 9 those are cities like Las Vegas, Miami, Detriot, Riverside etc. The unemployment rate for Pierce county is 4.9 so its not low but its not out of control. I am with you on investing. I am starting to look at lots around the waterfront land to invest in in Pierce county. But like I stated before, I think Pierce county go be hit harder than any other county in Washington but I guess we have to see what happens in the fall when the rebates and fed rates cut have trickled through the economy

[Sandy Nelson]

Balco,
Home prices in Pierce County have dropped 7% between February of 2007 and February 2008. However, in the long term, real estate tends to appreciate in value. It just depends how long you'll plan on keeping a home. In Thurston County in the past 8 years, homes appreciated an average of 9% per year. In 2005 alone the appreciation was 21%. I wish I could predict what the market will do in the near future, but I believe that real estate is a great long-term investment vehicle. Besides any appreciation in value, you get to live in your own home and do with it as you please, as well as receive a tax benefit. If you're only planning on living in Pierce County for a year or two, I would recommend renting.
Good Luck!

Sandy

[azcallin]

waiting for prices to bottom out may take a while in wa
while there is much talk and hype abpout prices bottoming out
around the country, looking at stats shows you it is not happening
in wa state like other areas. in fact our prices fell some then went
up some ...

[irrational exuberance]

I find it interesting to read that most builders in local papers are saying activity is increasing again. There is definitely discrepancies between those who are waiting to buy and those who can buy. I personally think those who dont have the ability to buy a house outweighs those just sitting an waiting. My wife and I are in the waiting category. The bank emails us every other week about our pre-approval we have sitting there but we think its wise to wait, because it gives us an opportunity to pay off all debt and the biggest reason is when you borrow 350k for 30 years at 5.8% you only pay 4.5k of principle at the end of year 1. So if prices go down by 10k you are already negative. I not trying to buy a house and use it as an investment but I dont like paying more for something than its worth, especially when the land it sits on is always appreciating, and alot can happen in 30 years. But again, I think the biggest negative in the market is not the media scaring people into waiting but no more of the easy money and no non verifying income loans available anymore. When you look at that on a national level, every housing market will suffer to some degree. We have ours here that are so expensive they only attract a certain type of buyer so those markets in Seattle and Areas around Tacoma are well sheltered. Again, there are several reasons to wait to buy because of the belief that prices will keep going down. One good one is the inability for anyone to go buy house outright so if you are a borrower than you will be affected by tightened lending standards regardless of your income or credit. When people start/builders start to recognize price is a function of everything then things will change. Until then waiting on buyers confidence with little by little price cuts is going to drag things a really long time

[Balco9]

I appreicate the information everyone. I think i will go ahead and buy.