should i buy now? Or wait til new year?

ihatenoiseDecember 11, 2008

Should I purchase a house in december or should I wait til new year? Not sure about pros and cons of trying it at the last month of the year.

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qdognj

Others will tell you to wait,housing is going much lower,get yourself a tent...I believe if you come across a home you like,at a price you can afford,do it...There will be no bell ringing when the housing market hits bottom...Just as many people 2+ years ago were singing the tune of you can't lose in real estate, as there are that post here saying the exact opposite..And as a contrarian,this is a good sign..best of luck to you

    Bookmark   December 11, 2008 at 1:50PM
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devorah

Is this a tax question? If so, it is a moot question because you wouldn't close before the new year anyway.

    Bookmark   December 11, 2008 at 2:23PM
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blueheron

I agree with the poster who said buy now. If you have the money and like the house, go for it. Don't wait for the lowest price, if the price is already low.

    Bookmark   December 11, 2008 at 4:07PM
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ihatenoise

Yes i do have abit to put down...I wouldnt have to worry about taxes then if it closes in the new year? I dont know anything in that area sorry.

    Bookmark   December 11, 2008 at 4:38PM
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jeri

We have 20%+ saved, nothing to sell, secure jobs with good incomes, very good credit scores, and the desire to purchase a home. But all the indicators say that houses still have quite a way to fall before they have corrected, and IMO, correction is the key.

Houses were too far out of line and need to correct further before buying is a prudent idea.

    Bookmark   December 11, 2008 at 5:00PM
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qdognj

Jeri, out of curiousity,what will be the determining factor in your decision when you decide to buy? Interest rates? I'll bet they are higher 12-18 months from now..a further 10-15% decline in prices? But who says that's all that will occur? My point is i am not sure when,if ever, there will be a time where one will be secure in the purchase of a home..and rememeber a home is simply that a home, not a stock or mutual fund..Life is too short too wait for the right time..But i will agree you need to be comfortable in your decision,so best of luck to you...

    Bookmark   December 11, 2008 at 5:08PM
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xamsx

Where are you looking? Not all markets are in the dumps and not all markets are decreasing in price. If that is the wave you are waiting for, it may never arrive in some markets and in the ones currently hurting it may be nearing bottom.

Are you a first time buyer that is going to be eligible for incentive programs, qualify under your 2007 tax returned but earned far more this year and need to buy a house before 2009 hits? My brother is in that boat and is one compelling reason for him to tender the offer now rather than wait until the 2009 calendar year. We are also in a market that is not sinking in price and is not down in the dumps. I'm not sure whether he'll forgo the incentives and buy something with no incentives next year.

If you find something you like and can afford, go for it!

    Bookmark   December 11, 2008 at 5:24PM
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GammyT

Are ihatenoise and jeri the same person?

    Bookmark   December 11, 2008 at 6:38PM
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ihatenoise

uhh...whose thread is this im kinda confused here..

    Bookmark   December 11, 2008 at 6:56PM
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xamsx

What market are you looking to buy into, ihatenoise?

    Bookmark   December 11, 2008 at 7:32PM
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jeri

The OP asked if he/she should buy now or wait. I gave my reasons for waiting.

Ihatenoise  where are you looking to buy?

IÂm in So. CA and found this an interesting read:

http://www.doctorhousingbubble.com/

    Bookmark   December 11, 2008 at 7:52PM
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FatHen

Prices in some areas are at or near what they were pre-bubble. I believe that general rules of thumb that were in place before housing rabies took hold of this country are still good measures.

One, if you stay in the house at least 5-7 yrs it may make more sense to buy, depending on the local market. If you're moving around a lot, rent. Not only could we still be in a falling market, but moving and selling before that rarely makes sense. I believe most areas still have a ways to come down in price, the exception possibly being areas that never saw the wild price inflation. But even those areas could lose value, they just have less distance to go to make up for it when housing "recovers."

I would not buy in an inflated area. Most of those prices are still WAY out of whack w/reality and w/incomes. They may come down slowly and painfully, or it may be fast, but they have to come down because people are unable to afford them and many (responsible) lenders have tightened up standards. Any lenders who'd still approve a loan for too much house is probably clearly a crook, and to be avoided.

Second: Old rule of thumb on how much house you could afford was, never finance anything more than two or three times your annual income, and only about a quarter (to a third at most) of your income per month for a mortgage pmt or rent. Many variables including your down payment, debt you still owe other creditors, years til retirement, etc. But never let anyone tell you that buying some overpriced house that requires a toxic loan to get into, is ok just because someone will lend it to you. And never let anyone tell you housing only goes up. That was the industry's justification for telling buyers that a house is an investment instead of just a place to live. You have to live in a house a long time and sell in a favorable market for it to have been an investment and even then many people 'forget' all the money they paid out as a homeowner that they won't get back like maintenance, HOA dues, and so on.

    Bookmark   December 11, 2008 at 8:18PM
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ihatenoise

Im in two rivers wisconsin...I plan on staying for a while...was looking at one of the foreclosures. Housing prices here are alot cheaper.

    Bookmark   December 11, 2008 at 8:51PM
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