Is it the right time to buy, or will ...

Is it the right time to buy, or will prices go lower?

There are 17 comments on the Boston Globe story from Apr 15, 2008, titled Is it the right time to buy, or will prices go lower?. In it, Boston Globe reports that:

“I liken buying a home today to getting married: you really have to be in it for the long haul and ready for the commitment. If you're planning on buying right now, you should also be planning on staying awhile.”

Will prices fall further or should you leap at a deal now? Yes. To both. If that sounds confusing, such is the state of the real estate market some 30 months into a slump, with no obvious end in sight. via Boston Globe

Join the discussion below, or Read more at Boston Globe.

Nboro

Bolton, MA

#1 May 27, 2008
If you think about it, it is a great time to buy as long as you are willing and able to keep it as a long term investment. With the prices so low it is a buyers market so if you are able to hang on to the property until the market turns around because your getting it for so low you can make a killing when you sell.
Investor

United States

#2 May 27, 2008
Nboro, people who try to beat the market and make a killing usually just lose...that's with any market. You have to know the five (5) points of investing to be very, very wealthy. Sure, keeping it for a long time is the best idea, but during that time you will pay a mortgage, taxes and up keep. Invest wisely and become wealthy instead.
Nboro

Bolton, MA

#3 May 27, 2008
very valid point...
Mr X

United States

#4 Jun 3, 2008
House prices will keep going down. In north California, I was reading on yahoo last week, 500K houses are now selling for 200K - yes 200K. In SanDiego area, 450K-750K houses are selling in 250 K-350K range.

Nothing of that sort has happened in other areas of the country where prices went up astronomically too. I think another 15-20% decline is coming for sure.

House is NOT like a stock that can turn around pretty quickly. You will have plenty of time to see the price movements before you buy. Unless there is price stabilization ( i.e. prices dont go down anymore )for at least 8-12 months, it is too dangerous to buy.
Sista

United States

#5 Jun 4, 2008
Mr. X reads and believes what Yahoo is saying. By the time it gets to the public via our trusted(?) news media...it's too late. No body can predict the market unless they have a crystal ball. If you are in a postion to buy a property now, do so. If not...then don't. Don't listen to the critics, the socalled experts and the nay-sayers. They have no idea.

Mr. X what do you mean by too dangerous to buy. I just purchased a home in MA a few months ago and one in Myrtle Beach. I own a home in Florida as well. I'm very proud of my purchases and enjoy them when I can....Go back to listening to the news for your future financail strategy?
Patient buyer

Houston, TX

#6 Jun 4, 2008
Sista wrote:
Mr. X reads and believes what Yahoo is saying. By the time it gets to the public via our trusted(?) news media...it's too late. No body can predict the market unless they have a crystal ball. If you are in a postion to buy a property now, do so. If not...then don't. Don't listen to the critics, the socalled experts and the nay-sayers. They have no idea.
Mr. X what do you mean by too dangerous to buy. I just purchased a home in MA a few months ago and one in Myrtle Beach. I own a home in Florida as well. I'm very proud of my purchases and enjoy them when I can....Go back to listening to the news for your future financail strategy?
It doesn't take a crystal ball to see that foreclosures are at record highs and rising, inventory levels are more than 10 months of sales, a record number of homes are vacant, and the rate resets have not even started for the Alt-A and Option ARM loans made during the peak of the housing bubble. You will have to judge for yourself what that means for future home prices. You can choose to bury your head in the sand and pretend those facts have no implications for the direction of home prices over the next few years if you want.
now what

Albuquerque, NM

#7 Jun 4, 2008
If you are going to buy, don't use a Realtor, they are all money hungry and will only put you into a home that you will lose later, and whatever you do, don't use a loan officer, they are ruining the economy! All these foreclosures are the fault of those 2 professions... Don't you read the news?
Are you serious

Washington, DC

#8 Jun 4, 2008
now what wrote:
If you are going to buy, don't use a Realtor, they are all money hungry and will only put you into a home that you will lose later, and whatever you do, don't use a loan officer, they are ruining the economy! All these foreclosures are the fault of those 2 professions... Don't you read the news?
I am not just saying this because I am an Agent myself, but all Agents and Lenders are not alike. Yes, just as any business out here; there are those who are greedy and unfortunately will do whatever for a quick buck.

When you seek the professional assistance of a Agent, you should do the best job of interviewing them, because just as you may not be able to work with that Agent, as well they may not want to work with you.

I interview my clients as I expect them to do the same and trust me I am finding that the educated buyers (those who research), generally are able to truly assist with the process (hands on) rather than sitting back and letting someone make all of the decisions for you. It is wise to educate yourself and be a smart consumer, don't leave any of your financial affairs up to another individual.

And for the record, when an Agent is representing a buyer; all fees are paid by the seller. And, of course as a seller if you probably educate yourself on the process of selling your own home, by all means go for it and save money! However, if you're not sure, all of the liability will surely fall on you!

The comment you made is like saying; all men are cheaters or all women are nags, you can't just dump everyone in one category. Everyone on welfare is not stealing from the system.

Good time to purchase; just stay within your means and don't try and keep up with the Jones's.
now what

Albuquerque, NM

#9 Jun 4, 2008
SURE, the "nice" or "right" ones just point fingers anyway and are self-rightous. What is next, blaming Bush because it happened under his watch? Idiots!
Investor

United States

#10 Jun 4, 2008
Patient buyer wrote:
<quoted text>
It doesn't take a crystal ball to see that foreclosures are at record highs and rising, inventory levels are more than 10 months of sales, a record number of homes are vacant, and the rate resets have not even started for the Alt-A and Option ARM loans made during the peak of the housing bubble. You will have to judge for yourself what that means for future home prices. You can choose to bury your head in the sand and pretend those facts have no implications for the direction of home prices over the next few years if you want.
No you don't, but you are talking after the fact. If you time the market, no matter which market, you will lose. As an investor I see most people don't know anything about what they are doing to invest. Most of these people have jobs that will never allow them to be wealthy, and limits their income...but, they settled for that job. I invest in housing, markets and I'm a venture capitalist for a number of companies here in MA. I am very successful and I never listed to CNN, MSN or the Money making schemes they talk about. They have no, no idea what they are talking about. The news tells us what we want to hear that day. To finally end this, if you want to buy a house and can afford it...do it! Don't wait, you'll lose.
Patient buyer

Blacksburg, VA

#11 Jun 4, 2008
Investor wrote:
<quoted text>
...if you want to buy a house and can afford it...do it! Don't wait, you'll lose.
Lose what? Look back at what home prices have done after previous corrections. They stay low for several years and then move up slowly at first as buyers re-enter the market. The only way to lose is to buy while home prices are still falling precipitously, as they are today. It is much safer and smarter to wait until home prices stabilize before buying. The risk if you buy today is that home prices fall another 10-20% over the next year. If they are at the bottom already, maybe they go up 5% next year, and in the meantime you can rent for half the cost of buying and save about the same amount.
Investor

United States

#12 Jun 4, 2008
Patient buyer wrote:
<quoted text>
Lose what? Look back at what home prices have done after previous corrections. They stay low for several years and then move up slowly at first as buyers re-enter the market. The only way to lose is to buy while home prices are still falling precipitously, as they are today. It is much safer and smarter to wait until home prices stabilize before buying. The risk if you buy today is that home prices fall another 10-20% over the next year. If they are at the bottom already, maybe they go up 5% next year, and in the meantime you can rent for half the cost of buying and save about the same amount.
You don't seem very smart. You just don't get it... I don't waste my time talking to people who are just to stupid to think.
Patient buyer

Blacksburg, VA

#13 Jun 4, 2008
Investor wrote:
<quoted text>
I don't waste my time talking to people who are just to stupid to think.
Just as well - I shouldn't waste my time correcting someone who didn't learn to spell.
Investor

United States

#14 Jun 5, 2008
Patient buyer wrote:
<quoted text>
Just as well - I shouldn't waste my time correcting someone who didn't learn to spell.
That really hurt :( I should just slit my wrist now! Spelling is not a sign of intelligence, obviously....
Mr Z

United States

#15 Jun 8, 2008
Sista wrote:
Mr. X reads and believes what Yahoo is saying. By the time it gets to the public via our trusted(?) news media...it's too late. No body can predict the market unless they have a crystal ball. If you are in a postion to buy a property now, do so. If not...then don't. Don't listen to the critics, the socalled experts and the nay-sayers. They have no idea.
Mr. X what do you mean by too dangerous to buy. I just purchased a home in MA a few months ago and one in Myrtle Beach. I own a home in Florida as well. I'm very proud of my purchases and enjoy them when I can....Go back to listening to the news for your future financail strategy?
Actually all these numbers did not come from the reporter's imagination, he was directly quoting a realtor/investor in that area.

Stories in news media ABOUT TREND can be late - I agree. BUT THIS IS NOT TREND ANALYSIS that they are doing. This is live results/prices. We have all seen TV stations reporting very late that a stock is good. But do they report stock prices late too ? NO.

So you bought multiple house - so what ? Many people bought many houses during 2002-2006. What does that prove ?
Mr X

United States

#16 Jun 8, 2008
Investor wrote:
<quoted text>
No you don't, but you are talking after the fact. If you time the market, no matter which market, you will lose. As an investor I see most people don't know anything about what they are doing to invest. Most of these people have jobs that will never allow them to be wealthy, and limits their income...but, they settled for that job. I invest in housing, markets and I'm a venture capitalist for a number of companies here in MA. I am very successful and I never listed to CNN, MSN or the Money making schemes they talk about. They have no, no idea what they are talking about. The news tells us what we want to hear that day. To finally end this, if you want to buy a house and can afford it...do it! Don't wait, you'll lose.
While timing the market on short-term trend is not OK, but timing on medium-term to long-term trend is perfectly OK. Otherwise, you will be holding the bag with nobody else to hand it over to. How will you feel if you were to live in a house with upside-down mortgage for 5 - 10 years. Plenty of sleep medications will be needed.
Mr X

United States

#17 Jun 8, 2008
Patient buyer wrote:
<quoted text>
Lose what? Look back at what home prices have done after previous corrections. They stay low for several years and then move up slowly at first as buyers re-enter the market. The only way to lose is to buy while home prices are still falling precipitously, as they are today. It is much safer and smarter to wait until home prices stabilize before buying. The risk if you buy today is that home prices fall another 10-20% over the next year. If they are at the bottom already, maybe they go up 5% next year, and in the meantime you can rent for half the cost of buying and save about the same amount.
You are absolutely right. House prices dont and will not turn around from a fall quickly. This is why -

1) Unlike a stock, a house is NOT an liquid asset. ILLIQUID ASSETS DONT MOVE IN PRICE QUICKLY AT THE turning POINTS. This is because, buying/selling house is not as easy as buying/selling stocks - so people want to see the TRENDS ESTABLISHED before they make a move.

2) By the time, this mess is over, lot of people will suffer bad painful losses. So INVESTORS WILL NOT BE RUSHING IN TO BUY THIS TIME.

3) BANKS HAVE TIGHTENED CREDIT STANDARDS. Liar loan days are gone. Meaning, less buyers, lower amounts of each loan approved.

4) ARMS are gone too. The people who thought they could live in a McMansion with no downpayment and 1% rate, and when rates reset, just walk away - ARE GONE.

5) Gas and food prices and prices of everything else has and is going up. Meaning less money to spend on mortgage payment going forward.

6) People have realised that when you buy a house, there are other hefty expenses too.

Simply put, FOOL ME ONCE, SHAME ON YOU. FOOL ME TWICE, SHAME ON ME.

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