Is it finally time to snap up a house? I have a few buddies who decided to hang onto their houses through thick or thin. They bought at the top and are now paying inflated prices for taxes, insurance, etc and are now barely holding on. Now I see many apartment dwellers finally coming out and throwing down cash to buy homes thinking and believing that the storm is now over, the bottom is in. In looking back at how equities have traded, such as those stocks of the $NDX in 2000, it was commonplace for folks to think and believe the bottom was in and the trend changed only to experience an even greater selloff. From just an investment point of view, would you buy a house right now? Is the bottom truly in? I'll add that looking at the XHB, it does appear as something has changed or is it just a technical bounce? I know that there is a good chance my buddy will probably sell and unload his house if prices turned around. I see many people getting "laid off" around me such as one good friend who worked at an insurance company for over 18 years. What says you?
Mortgage apps are up, for refis. Wait until building permits increase, then wait for actual starts to increase. That *may* signal a bottom.
Do you believe that there is a recession coming? If so then it would seem unwise to bet on a bottom just yet. If not ...
Payrolls turn negative, initial claims at highest since 9/11, umemployment knocking round 5%, monolines shaking at the knees, companies slashing workforces, can't see any more sellers about to come to market, oh sure looks like an ideal time to pile into the housing market
Believe it or not, the economy is still being "pumped" for the election. I'd wait at least 1 maybe 2 more winters before buying.
Unless we're in the early stages of a 25-year bear market in housing, in which case you'd want to wait a bit....
NO! Just wait..there will be even more foreclosures ahead once the real layoffs start hitting and the unemployment rate increases as the economy slows down. We are still in the beginning phase of this economic slowdown and pricing will have additional downside pressure ahead. In the mean time, if you really just have to buy something then check on the tax foreclosures in your county to see if you can find any GREAT deals..we are starting to get some clean properties here in the Austin area that have been put into tax foreclosure.
how can you buy a house? prices nationwide only down 5-8% off 10 years of inflated tops. in my area tons of houses sitting but few have dropped there prices as employment hasn't tumbled yet. the key is employment. if unemployment skies over the coming 2 years home prices will drop 20-40% and that just puts them back to 2001-2002 prices. outside a few beach properties that dropped 50-60% i'd not touch blotted real estate yet