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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
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housing market, what do you think?
I have been looking for a house for a few months. Houses that were just a little more then what we wanted to spend have now dropped and are in our price range. Do you think this trend will continue over the fall?
the reason I ask is because there a few houses that have been on the market a while that haven't dropped yet, but we would really like, and I don't know if we should wait.
I know the fall and winter tend to be slower months, and no matter what I do, there will always be a drop after I buy, but is it worth waiting another month or so?
As for the 8K, DH and I feel that it would be really nice to get it, but it can't buy us another bedroom or a bigger place, and if we got a better home and missed out on the credit we would be ok with that.
Do you think its going to continue to drop over the next month or so?
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Posted 9/9/09 12:00 PM  |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: housing market, what do you think?
this question has been asked over and over again.
You can't time the market. If you are ready to buy and found the home that you love then it's the right time to buy for the long term.
Waiting for it to drop another $5K is not going to make a big difference.
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| Posted 9/9/09 12:08 PM |
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belladi
LIF Adult
Member since 9/06 1011 total posts
Name:
diana
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Re: housing market, what do you think?
Posted by Blu-ize
this question has been asked over and over again.
You can't time the market. If you are ready to buy and found the home that you love then it's the right time to buy for the long term.
Waiting for it to drop another $5K is not going to make a big difference.
I totall agree, make your offer. You have nothing to lose...
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| Posted 9/9/09 12:10 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: housing market, what do you think?
Posted by Blu-ize
Waiting for it to drop another $5K is not going to make a big difference.
ITA.
That's a complete gamble. It may go up, then what do you do?
If it goes down it won't be that much more, really! Unless a house is way overpriced to begin with. But thoses houses that priced for the current market, I would not expect them to go much more lowers. Maybe another $10K? $20K? Is it worth losing a house you may like for $20K? It's not that much difference per month in your mortgage.
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| Posted 9/9/09 12:12 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: housing market, what do you think?
Posted by Blu-ize
this question has been asked over and over again.
You can't time the market. If you are ready to buy and found the home that you love then it's the right time to buy for the long term.
Waiting for it to drop another $5K is not going to make a big difference.
sorry I missed those threads
As for dropping 5K, that's not what I have seen. Just this week I saw 3 houses drop around 15K. And that difference makes them fall in our price point.
I know its hard to predict it, but that's why I am looking for opinions on the subject. I can only go based on what I have seen. Maybe others aren't seeing what I am, maybe they are seeing something more, that is useful for me.
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| Posted 9/9/09 12:13 PM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: housing market, what do you think?
i think the big drops you've seen are sellers with school aged children that have already found another home & with summer ending felt lowering the price might be the last chance at selling & possibly getting into the new house near the start of school.
The pattern the past two years has been tons of houses come off the market in the dead of winter & are relisted at a similar price in the early spring.
There is too much risk involved in trying to time it exactly right. IMO even $15,000 isnt that much realtive to most LI home prices. If you are planning on finding a home that you will live in for many years its not a large amount at all.
If its enough to put you over your ideal mortgage payment you might be stretching your budget too much to begin with.
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| Posted 9/9/09 12:20 PM |
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belladi
LIF Adult
Member since 9/06 1011 total posts
Name:
diana
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Re: housing market, what do you think?
Posted by HeatherRose
Posted by Blu-ize
this question has been asked over and over again.
You can't time the market. If you are ready to buy and found the home that you love then it's the right time to buy for the long term.
Waiting for it to drop another $5K is not going to make a big difference.
sorry I missed those threads
As for dropping 5K, that's not what I have seen. Just this week I saw 3 houses drop around 15K. And that difference makes them fall in our price point.
I know its hard to predict it, but that's why I am looking for opinions on the subject. I can only go based on what I have seen. Maybe others aren't seeing what I am, maybe they are seeing something more, that is useful for me.
So make your offer 15k less, you really cant time the market and whats teh worse they can say no.
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| Posted 9/9/09 12:22 PM |
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DMT
LIF Adult
Member since 6/05 2277 total posts
Name:
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Re: housing market, what do you think?
You need to play around with morgage calculators to answer your own question.
For example:
a 400k house with 80k (20%) down at 5.125 is $1742/month mortgage
a 415k house with 83k (20%) down at 5.125 is $1807/month mortgage
I feel that if you cannot afford the extra $65/month then you really should not be buying a home if you are cutting it that close.
Can you take the $65 from something else each month like food or shopping or buying coffee each day?
Like the ladies above said, 15k spread over 30 years is not much to worry about.
Also, say that 5.125% rate goes up to 5.375 that $65 gets blown out of the water.
I say you like the house, you can afford it, rates are good now, go for it. You cannot time ever single detail out. There is always SOMETHING: the price, the house, the rate, the taxes.
good luck
Message edited 9/9/2009 12:25:42 PM.
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| Posted 9/9/09 12:25 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: housing market, what do you think?
Posted by DMT
You need to play around with morgage calculators to answer your own question.
For example:
a 400k house with 80k (20%) down at 5.125 is $1742/month mortgage
a 415k house with 83k (20%) down at 5.125 is $1807/month mortgage
I feel that if you cannot afford the extra $65/month then you really should not be buying a home if you are cutting it that close.
Can you take the $65 from something else each month like food or shopping or buying coffee each day?
Like the ladies above said, 15k spread over 30 years is not much to worry about.
Also, say that 5.125% rate goes up to 5.375 that $65 gets blown out of the water.
I say you like the house, you can afford it, rates are good now, go for it. You cannot time ever single detail out. There is always SOMETHING: the price, the house, the rate, the taxes.
good luck
we actually are just buying something that we can swing on one salary even though we can afford more. We want to do it that way so that when we have kids I can stay home. but thanks for the advice. I am just considering if prices will fall anymore 
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| Posted 9/9/09 2:27 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: housing market, what do you think?
thanks for everyones input, its very helpful! I guess if we find something we love we will just buy it, and not wait. we could also offer less if its been on the market awhile and see what happens
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| Posted 9/9/09 2:28 PM |
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DMT
LIF Adult
Member since 6/05 2277 total posts
Name:
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Re: housing market, what do you think?
Posted by HeatherRose
thanks for everyones input, its very helpful! I guess if we find something we love we will just buy it, and not wait. we could also offer less if its been on the market awhile and see what happens
Sure put in a bid, you never know what may happen. Go for it! If you do not get it, it was not meant to be. I am sure there are plenty of houses out there that you can make a "home"
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| Posted 9/9/09 2:36 PM |
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skew
LIF Adult
Member since 5/05 6794 total posts
Name:
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Re: housing market, what do you think?
Posted by HeatherRose
thanks for everyones input, its very helpful! I guess if we find something we love we will just buy it, and not wait. we could also offer less if its been on the market awhile and see what happens
ABSOLUTELY! do NOT pass up a house that you love in hopes that the price will drop in the future. offer what you are comfortable paying.
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| Posted 9/9/09 5:15 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: housing market, what do you think?
Here is my take on it:
The Obama 8k credit is fueling the homebuying market this year. I have been going to open houses and there is major foot traffic. People are definitely buying, and buying big.
I think a lot of buyers figure they are getting an 8k tax credit, so that gives them the reason to spend an extra 30k.
I just put my house on the market and I had an accepted offer on the FIRST day and first appointment it showed. Didn't even need to do an open house.
I was floored and I have my fingers crossed the deal goes through as I am very satisfied with what I am getting for it. I will probably be stuck in a rental for a few months because I have no house lined up. No big deal really.
Anyways as far as prices going down, I think this winter prices are going to plummet... assuming Obama does NOT extend the 8k tax credit. I am hoping I will find a great deal in the middle of winter when the 8k first timers are out of the market, as well as the winter being a slow housing time in general.
If Obama does something STUPID by extending the 8k credit, then maybe the housing will stay stable.
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| Posted 9/9/09 5:20 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: housing market, what do you think?
We were told that there is also a fall inventory (when people put houses on the market)
I will say that most houses by me have sold or are under contract - the pickings are getting slim.
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| Posted 9/9/09 5:56 PM |
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Melmel821
Love being a mom!
Member since 5/08 2776 total posts
Name:
Melanie
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Re: housing market, what do you think?
I personally don't think you should wait to see if prices fall. I think you should put in an offer on a house you like. If you are hoping for the house to be $15K less then you can always offer less and hopefully they will accept.
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| Posted 9/9/09 7:00 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: housing market, what do you think?
I love all the advice, thanks!!! I was second guessing ourselves with buying now, since I saw some houses drop, but I think you are all right, to buy now
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| Posted 9/9/09 8:32 PM |
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rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
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Re: housing market, what do you think?
Posted by ave1024
Here is my take on it:
The Obama 8k credit is fueling the homebuying market this year. I have been going to open houses and there is major foot traffic. People are definitely buying, and buying big.
I think a lot of buyers figure they are getting an 8k tax credit, so that gives them the reason to spend an extra 30k.
I just put my house on the market and I had an accepted offer on the FIRST day and first appointment it showed. Didn't even need to do an open house.
I was floored and I have my fingers crossed the deal goes through as I am very satisfied with what I am getting for it. I will probably be stuck in a rental for a few months because I have no house lined up. No big deal really.
Anyways as far as prices going down, I think this winter prices are going to plummet... assuming Obama does NOT extend the 8k tax credit. I am hoping I will find a great deal in the middle of winter when the 8k first timers are out of the market, as well as the winter being a slow housing time in general.
If Obama does something STUPID by extending the 8k credit, then maybe the housing will stay stable.
I am no housing expert, but i can say that i agree with this. It's also my HOPE that this is how it will turn out for me...
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| Posted 9/9/09 8:57 PM |
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lovemy2boys
LIF Adult
Member since 10/07 3915 total posts
Name:
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Re: housing market, what do you think?
I'm waiting to see what happens during the winter. we need the space now but I will wait and hope that things drop lower. 20K over 30 years is a lot of money, even tho the monthly payment isn't a lot.
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| Posted 9/10/09 11:49 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: housing market, what do you think?
Posted by Erica
We were told that there is also a fall inventory (when people put houses on the market)
I will say that most houses by me have sold or are under contract - the pickings are getting slim.
I bought in the fall. I think this is a market you can't time.
I also think the 8K credit will extend or come out in some other way. We are far from being out of the housing market crisis.
I don't think it's stupid. It's keeping a lot of people out of foreclosure.
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| Posted 9/10/09 12:45 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: housing market, what do you think?
Posted by lovemy2boys
I'm waiting to see what happens during the winter. we need the space now but I will wait and hope that things drop lower. 20K over 30 years is a lot of money, even tho the monthly payment isn't a lot.
If you stay in the house 30 years.
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| Posted 9/10/09 12:47 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: housing market, what do you think?
Posted by Blu-ize
Posted by Erica
We were told that there is also a fall inventory (when people put houses on the market)
I will say that most houses by me have sold or are under contract - the pickings are getting slim.
I bought in the fall. I think this is a market you can't time.
I also think the 8K credit will extend or come out in some other way. We are far from being out of the housing market crisis.
I don't think it's stupid. It's keeping a lot of people out of foreclosure.
How is the 8k credit keeping a lot of people out of foreclosure? Maybe the making homes affordable portion is keeping people out of foreclosure, but the buying credit itself shouldn't have anything to do with this.
Im sorry but I just don't agree with many of these buyouts, or credits.
Obama loves to preach the fact that "if you are stupid - you get a bailout, but if you are fiscally responsible - you get a handshake". It really pisses me off.
Why does the 8k credit only good for first time home buyers? That's ridiculous. If the housing market needed "stimulating", it's very likely that the people that already bought once are the people that are possibly sitting on a ton of cash and would have no problem buying another piece of property which would stimulate the market further.
So since I am not a first time home buyer (actually a fourth time homebuyer), I am out looking for a house and competiting against other buyers that are getting a free 8k. So my offer right out of the gate has to be 8k more than a first time buyer's. That's absolutely asinine. And the best part about it, that first time homebuyer's credit is coming out of MY TAX DOLLARS. So I am getting bent over in both directions.
I really hope this program doesn't get extended past November. If it does, at least make it so all buyers are eligable. Make it so every buyer gets ONE 8k lifetime credit (regardless if they previously bought or not). That's a lot more fair.
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| Posted 9/10/09 1:05 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: housing market, what do you think?
I agree that it should be for all homebuyers regardless of 1st, second, third..etc.
It's making home buying more affordable. More people buy homes..people who can't afford their homes don't have to foreclose because they can sell and get out of it. I'm seeing it in the worst hit areas of the country..albeit the prices are lower and that is a driving force. The tax credit creates liquidity for people that may have been on the fence about buying. that 8K matters a lot to some. Once again, I agree that it should be for everyone.
But, as you posted, they way it is now, if you pay your way and are fiscally responsible you get nothing.
People are not stupid because they made decisions that have backfired..I know many folks who have suffered in this market that are not stupid.
Message edited 9/10/2009 1:47:01 PM.
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| Posted 9/10/09 1:28 PM |
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Re: housing market, what do you think?
i would put an offer in!!! this is what just happened to us.
there was a house that we LOVED. totally perfect. they were asking 45k more than we wanted to spend.
well we put an offer 15k lower than what we wanted to spend when all was said and done.. and guess what we got it for 35k less than they COUNTERED another person with.
you never know.. just bc they didnt lower the price just yet doesnt mean they arent considering it!
just make offers all over the place..
my one piece of advice. dont get emotionally attached if this is going to be your buying strategy. its a roller coaster!
good luck!!
Message edited 9/10/2009 2:56:04 PM.
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| Posted 9/10/09 2:55 PM |
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evenedan
Need a little sunshine
Member since 9/05 3843 total posts
Name:
D
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Re: housing market, what do you think?
We closed on our house in May and plenty of people told us to wait, "prices might drop further." Do I think that maybe if I was negotiating the price of my house today I could get it for less? Maybe, but only about 10K. Then again, I wouldn't be locking in at 4.5%, since rates have gone up a bit...
It's impossible to know for sure what the future holds, if you've got the money now, go for it.
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| Posted 9/10/09 3:05 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: housing market, what do you think?
Posted by Blu-ize
The tax credit creates liquidity for people that may have been on the fence about buying. that 8K matters a lot to some.
See this is the problem I have with it. If 8k is the "make it or break it" amount for some buyers, then they probably shouldn't be buying in the first place. 8k is really not a lot of money in the grand scheme of buying a house.
Like I said above, it seems like people are willing to spend 30k more when they know they are getting 8k back.
I wonder how many of these first time homebuyers end up in foreclosure two years from now because they thought getting a free 8k from the government allowed them the financial freedom to make a 400k investment. We could be in an even worse situation two years from now than we are currently, because of this Obama credit.
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| Posted 9/10/09 3:11 PM |
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