I am considering buying a house. The interest rates are at record lows and housing prices have dropped a lot. I know we have a few real estate experts on ET and was wondering what some of you think about it. Is it a good time to buy or do you see another leg down? Thanks for your response in advance.
I'd like to know too. Especially in the Toronto area. I don't trust what real estate agents tell me. Of course they want me to buy! I'm looking to live, not as an investment. But I definitely don't want it going down in value much further.
There are stil 3-5 sellers for every buyer. You do the math. Real estate prices will remain under pressure for YEARS. It's pollianic to think otherwise.
Real Estate is local. Some areas that have high foreclosures will fall. Other areas may stabilize soon. I'd say wait till next fall winter and see how things play out. Get qualified and ready to buy if things improve in your area. All depends on where you buy.
Conversation about RE is almost impossible because no two pieces are exactly equal. The guy across the street can be living in an identical house. I'm in Beverly Hills , he's in Los Angeles. Two very different school systems, fire/police response times etc, etc. To the casual observer it all looks the same. You should know the area well. Socio econ backround , where it was , where it is, where it's going. Human migration patterns control value. What's the reason for buying , raise a family, investment? You mentioned Toronto. If memory serves Canada doesn't have liar loans because they demand 20% down on all. They also don't allow interest deductions so people buy homes to live in , not tax deductions. All that said if the area didn't fluctuate much in value then I'd buy. The downside risk will be small, maybe bounce along a bottom for a few yrs but you will be happily locked into low rate.
Timing the bottom is a futile exercise. This time is fairly unique, low prices AND low interest rates. Go for it. Get a flat rate, not an ARM.
Exactly. If you're going to live in the home for a while, now is the time. It will be impossible to get the exact bottom. But with 30 yr rates down to the lowest since WWII and house prices cratering, now is the time. Sure, you might buy and your house could go down another 5%, but if you're in there for the long run - that's nothing. I am buying in the Baltimore area - it's a company relo. I'm taking a bath on my house in NJ, but I'm looking at a 4.35% 30yr fixed!
watched a clip PBS NewsHour ? of a couple who'd purchased 2 houses in a Detroit neighbourhood, one for under $2,000 t'other for $700; the houses were stripped but they're working on the 2k one and said it'd be finished by the fall, no info about what the spend would be