Yeah but who wants to live in Detroit? High unemployment and crime rate, etc... With that being said it's amazing what $150K will get you -- 5K sq. ft, etc.
Wait till mortgage rates get to 10% and pay cash. These people buying now with 5% mortgages will see the value fall in proportion to the rise in rates. You buy when rates are high and you sell when rates are low. Now rates are low and prices are high. Not the time.
hasn't japans re market been flat for quite some time? their rates are pretty low too. another cautionary note - if we have a paradigm shift to 3rd world mortgages in 4 installments over 2 years or something like that, watch out. I wouldn't be opposed to getting something cheap in a new urbanism style community in a decent area that I would live in, but these low rates are just going to prop up prices that shouldn't exist.
I second that opinion. Meredith Whitney. the "it" banking analyst opined just the other day that with national numbers putting housing down 27% peak to trough right now. She expects the final peak to trough to go right through 40% (depreciation). Yes real estate is local but in most locations the trajectory continues to be down. This is an exceptional housing recession so don't be concerned about missing the bottom because we will likely bump along for several more years. I would rent and stay liquid.
makes no sense. the only way rates go to 10% is because inflation skyrockets. if inflation skyrockets houses will increase in dollar value not decrease. now is the time if you need a house to live in and have a secure job.
I agree,,,, you want to be buying when there are 5 sellers to each buyer...not the other way around....in order for it to go back up there will be 5 buyers per every 1 seller..... where do you think the sweet spot would be?? I ain't saying it can't go down anymore..im just saying out of the 2 options which one may be more profitable...peace
Check out this chart showing housing price ratio to household income. Then think about how long you will definitely be in the house.
you buy when people are panicking hitting the bid and being forclosed on by the qraudrillions.....it aint easy to time but thats when you should be buying.