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So I am literally confused as to what to do in this housing market on LI as of March 09. Do we wait it out or do we buy now while prices are relatively low (I still think there is room for the housing market to sink lower here). But I keep hearing conflicting views as to what to do. I know this has been talked about until your blue in the face, BUT I need some more points of view.
Thank you in advance!
There are 2 parts to every housing purchase..the price, and the interest rates on the mortgage. It's hard to see mortgage rates going much lower than they are now, but they probably can go up. However, I do think you will see prices go down for another 6 months. If you have a solid job, you can afford the mortgage, and have found a house you wouldn't mind living in for a long time, it's not a bad time to buy.
If you are buying with the hope of moving up in 5 years, if you don't have bulletproof jobs, if the mortgage is a stretch, don't buy. No house purchased at this time should be viewed as an investment, because it probably will lose value over the short term, and who knows when and how far the market will go back up.
If I planned on buying a home, I would, at least, be out looking now...
Prices are low, mortgage rates are low, I hear tell of move-in condition foreclosures, short sales...
(I know two people who purchased foreclosures well below market which needed no work. Both were living in apartments and bought the homes because the mortgage works out lower than their rental payments. In one case he figures eventually/sooner or later he will sell at higher price than he purchased the home...he's in no hurry.)
Even that aside...if I planned on purchasing a home at any point in the future, I'd at least be out and about checking things out in case I might stumble upon a great deal. Who knows?
There are 2 parts to every housing purchase..the price, and the interest rates on the mortgage. It's hard to see mortgage rates going much lower than they are now, but they probably can go up. However, I do think you will see prices go down for another 6 months. If you have a solid job, you can afford the mortgage, and have found a house you wouldn't mind living in for a long time, it's not a bad time to buy.
If you are buying with the hope of moving up in 5 years, if you don't have bulletproof jobs, if the mortgage is a stretch, don't buy. No house purchased at this time should be viewed as an investment, because it probably will lose value over the short term, and who knows when and how far the market will go back up.
I agree with you that the rates can go up but they will probably drop another half point in the next year (raise the prices and preople don't buy as much). But are you actually saying that you think in 6 months prices will not drop further??? Think about it this way....in 6 months it will be Oct 2009 going into the winter (which is a great time to grab the houses that didn't sell during the past summer or from people who can't wait for spring) We have another full year of price drops IMO. Spring of 2010 I can see it leveling out at 5-10% less than now.
I couldn't agree more about have the income though...make sure you don't become a statistic who cannot afford your home
I agree with you that the rates can go up but they will probably drop another half point in the next year (raise the prices and preople don't buy as much). But are you actually saying that you think in 6 months prices will not drop further??? Think about it this way....in 6 months it will be Oct 2009 going into the winter (which is a great time to grab the houses that didn't sell during the past summer or from people who can't wait for spring) We have another full year of price drops IMO. Spring of 2010 I can see it leveling out at 5-10% less than now.
I couldn't agree more about have the income though...make sure you don't become a statistic who cannot afford your home
I should have said I think that prices will continue to go down for AT LEAST 6 months. Now is not the time to buy a house as an investment or short term purchase..unless it's a foreclosure. If you buy a house now, it should be at a mortgage you can afford easily and in a house that you wouldn't mind living in for at least 10 years.
I should have said I think that prices will continue to go down for AT LEAST 6 months. Now is not the time to buy a house as an investment or short term purchase..unless it's a foreclosure. If you buy a house now, it should be at a mortgage you can afford easily and in a house that you wouldn't mind living in for at least 10 years.
Now I couldn't agree with you more
I posted this link in another thread but it is still pretty interesting and related to this
US home prices 'in record freefall' (http://news.yahoo.com/s/afp/20090331/ts_alt_afp/useconomypropertysalesprice - broken link)
So I am literally confused as to what to do in this housing market on LI as of March 09. Do we wait it out or do we buy now while prices are relatively low (I still think there is room for the housing market to sink lower here). But I keep hearing conflicting views as to what to do. I know this has been talked about until your blue in the face, BUT I need some more points of view.
Thank you in advance!
There is every reason to buy. Sellers are desperate and rates are low. Why wait?
Besides, any answer you get is going to be as good as anyone else's right now. Everyone is just a prognosticator.
Timing the market is tough, if you are willing to hold onto property for 10+ years now is the time.
It worked for me in the early 80's when the housing market "peaked"
People thought I was crazy for spending 175K on a house with 3 ocean views.
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Everyone is guessing.
