If you believe the market is down across the board, then you'd sell at a loss, but buy at a discount, so it would wash out unless you significantly change the size of your house. If you think the market is going down, then you should sell right now anyway...even at a loss, and buy back when you think it has bottomed. Why don't you? Please explain. But the expectation that you can buy any asset, whether it be a car, a rare coin, a house, or some rare madagascar reptile and sell it back for the same price or more is an unrealistic expectation...unless you plan to hold it long-term and it doesn't depreciate over the long-run. SM
My issue with the USA today article is that it catered to the people who are in tight situations. Didn't talk about the people on the other side of the tables, who made money, or used the low rates to lock in multiple investment properties with sensible loan products. I don't want to sound crass, but we can't all be successful. Its a zero sum game. Some people were able to buy homes who earned incomes at a level where historically they would have had to save for a long time to get it, or lower their expectations, or both. But the article dramatically focused on those who bought as much house as they could afford, didn't pay attention to the paperwork, the loan terms, or the liklihood that near historically low rates would turn north some day. And now, the reality is that we will all have to pay for them through higher rates and stricter lending guidelines the next time we want a home loan. The article should have also talked about the smart ones...the success stories, the convenience store cashiers who did read the paperwork, and viewed the low interest rates as an opportunity, rather than an accident waiting to happen, and went out and bought something using a loan product not likely to change. But that doesn't sell newspapers. Doom and gloom does. SM
That's pretty much what we'll be doing starting next month. We weren't in a position to sell at the top, but we were able to sell within 10% of the top, which is pretty good AFAIC. Now we're looking for some place to rent until things begin to come apart. LC
i guess scam is strong....its a false sense of security for home buyers and sellers and thats why you have somebody who should be taking much less and getting out of debt sticking to his 'guns' while the market is crashing around him.....its just an approximation based on very little info, yet people treat it like its a punched ticket
The real estate market has certainly been in the slums. The house my parents were told was worth north of 500,000 sold for a mere 325,000. Then again, that was in south jersey
I do not KNOW if this is true or not. I have HEARD that a certain builder (in the top 5 of public homebuilders) is offering $125,000 rebates (after closing) on $325,000 homes in certain Florida subs. So, to keep comps from plummeting, and if true, they will give you a 40% coupon after the closing. This was mentioned to me this very morning by a broker I know who lives in Orlando. He is a more credible type.
this type of corruption is exactly what both the housing and the mortgage market need, so poor ARM schleps can afford to refi into 30yrs.