Ok seriously...is this a good/bad time to buy a house?

[CoffeeCat]

Given all of the economic factors--is this a good or bad time to buy a house right now?

Interest rates are low---so that's good.

However, homes are more expensive because there are so many buyers.

Then again, some people say the housing bubble is about to burst--which would mean that waiting may allow you to capitalize on lower prices and some good deals.

What's a family to do?

[donco6]

1. Depends on where you are.

Here in Colorado, homes are staying on the market longer, which is good for buyers.

[Liberty Belle]

2. Interest rates are about to rise; experts predict inflation.

If you do buy, be sure to get a fixed rate. Those with variable rates may find themselves with soaring payments they can't afford.

Look for something priced at under market value to be safest--
a fixer upper from a seller in a must-sell situation (divorce, moving out of state, retiring to a rest home, etc).

[BlueEyedSon]

3. Buy within your means. Buy to live in, not to speculate.

1. Prices may go down short term, but tend to recover. If you are staying for many years, you will be OK.

2. It's not like a bad stock, you can always live in it!

Past accuracy of these statements is no guarantee of future truth.

[BlueState]

8. Sage advice.

Think of the intrinsic value - it is your home.

Secondly, at current interest rates , and what you can afford to put down, how does your monthly mortgage compare to rent?

[Cleita]

4. I think property is probably your best investment right now.

Try to find something not inflated even if only as an investment to sit on and then sell later.

[zalinda]

5. Check out HUD

http://www.hud.gov/buying/index.cfm I bought a HUD house and am happy with it. It, of course, needed to be fixed up, but it is a solid house and well worth the price of repairs.

zalinda

[salin]

18. The local market matters... I got a fantastic deal on a HUD house

it was a HUD property in foreclosure. Because there were so many foreclosures in the region - it wasn't moving. I offered quite a bit less than the asking price - b/c it had been sitting for awhile. I figured the costs needed to fix it up - and dropped my offer accordingly (so the good asking price to begin with, would be my end costs - purchase plus repairs). The area has a ten year development plan - in which case the tvalue of the home could be more than 100% or more than I paid. But even if values don't increase, due to the 'steal' that I bought - when I sell (I don't see being here more than 5-10 years) - I will owe nothing and get all of the money back. I think my situation was unique - but look to HUD homes in forclosure - and if you are in a market where things are sitting for awhile - you might be able to get the bargain of a lifetime.

[Just Me]

6. Depends upon what you want: freedom or debt.

:shrug:

Is mobility important to you, right now? If not, sink in the heals and give your life to a "financial institution" for some uncertain while.

[Digit]

7. Yep, depends on where you are.

For instance, I would not dare buy a property in the DC metro area right now. Prices have been escalating at obscene levels.
Too many speculators for my tastes.
A one bedroom condo goes for over $200,000 in Skyline Towers (Falls Church, VA) these days. Back in '97, these were $60,000. People are bidding WAYYY over the asking prices just to get a property.
New York City is also insane with their prices.

Other areas are doing okay and I would say that purchasing as a place to live is a good investment.

[RPM]

9. the best of times, the worst of times

downside - bubble may be bursting soon

upside - good rates

sum: Buy a place you can afford, with a good equity cushion, and plan to stay there a while.

[siteleader]

10. There's no time like the present

I kept waiting for the prices to come down here in Cal for the last 15 years. Never did and probably never will.

[understandinglife]

11. Purchase a structure you can afford and that is to be your home. Don't...

...speculate; stay within your means (starting with being able to commit a down payment that is at least 10 % the cost of the structure).

Peace.


www.missionnotaccomplished.us (what are you going to do on this day to change the fate of America and humanity?)

[solinvictus]

12. According to The Economist, bad..

Their lead market analyst said that because of inflated US housing prices, many people will be stuck owing more on a mortgage than the actual worth of their home when the bubble bursts. It was on NPR a couple of weeks ago.

[judaspriestess]

13. owning a home

is ALWAYS far better than paying rent!!
Think about it
lets say 1000.00 a month in rent x 12 = 12,000 x 5yrs = 60K

while you can make money on your home.
I bought my home 2 years ago and it has doubled in value.

don't wait for the "bubble" to burst, its not anytime soon.
Expect rents to go up though.......
The best thing you can do for your family is give yourself a place of your OWN!!

[PeaceProgProsp]

14. I think there's definitely a bubble right now.

But I don't know when it's going to pop.

[Texifornia]

15. What I really like...

is the plethora of conservative advice on this thread.

We'd all be in better shape if we exercised more of this conservative liberalism, or liberal conservatism.

[applegrove]

16. There may be deflation in the housing market in a decade. Don't

buy and expect the house prices to rise has they have over the last 50 years.

[spindoctor]

17. The best time to buy a house....

...is when you can afford it.

The house market has its ups and downs like everything. If interest rates are low, prices are up, so there is no extreme benefit there.

Also, when it gets time to sell, your new house will be in the same market as your old house. So if you get less for your old house, you also pay less for your new house.

Just don't go in over your head. Don't finance the whole thing and don't, DON'T EVER, take a second mortgage unless you use it to increase the house value by more than the loan amount.