Are there any reliable sources that support this supposed price drop in real estate by the end of this year?
2007-02-05 05:31:35 · 12 answers · asked by granni 2 in Business & Finance ➔ Renting & Real Estate
There has been a lot of noise about a housing market collapse over the years. In every case they have had to revise the anticipated date because it just doesn't happen. Housing prices do fluctuate and tend to do so in a cycle directly related to interest rates. Since it is likely that the democrats are going to be running things for a while history indicates that interest rates will rise. They always have when the liberals are in charge. As a result, to sell their houses people have to lower their prices.
Bottom line is that you either pay it in interest or you pay it in selling price.
2007-02-05 05:42:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋
All good points up above and there is certainly a lot of statistical evidence to support the seasonal highs and lows. I think you are more interested in this particular overall industry cycle and will it "bust" in the 4th quarter. I conquer with the post above that at best it is an educated guess as to where the market is really going. Certainly a lot of people feel the worst is yet to come and others feel it is bottoming out - time will tell.
I think the most important variable is when do you need to buy? Are you moving a great distance? Are you starting a new job or getting relocated in or around September?
If you don't have a particular reason for buying then, I would just start looking - start looking now at the places you want to live and at the prices houses are being listed for.
When the timing is right (June, July...Septbember...December) for YOU, buy. The right house and price may jump out at you at a time other then in September.
Be flexible, shop and get educated on prices and the places you would want to live.
Best of luck!
Joe...
2007-02-05 14:03:27 · answer #2 · answered by Joe K 3 · 0⤊ 0⤋
A lot of people put their homes on the market in the summer - that's when they want to move, so their kids don't have to change schoolsduring the school year. If the home doesn't sell then you may see the price drop nearer the end of the year. If you are flexible on when you make the purchase, you might get a better deal waiting until the fourth quarter. That's definitely a better time to buy a new construction home because builders want the houses off the books by the end of the year.
2007-02-05 13:41:05 · answer #3 · answered by Rebecca G 3 · 0⤊ 0⤋
It’s all speculation. There are a few factors that may determine housing values. You need to look at the location. A home in Idaho will not appreciate, or depreciate, as much as the home in Malibu.
Second, you need to look at the reason you are buying a home. Is it an investment or a place to live? If you plan on purchasing a home to raise a family and live for the next 30 years then timing the market may not be a good idea. Living in that one bedroom with your spouse, two kids and Fido may not be that great of an idea.
Finally, you have to look at market fluctuations. Typically in the winter, house prices tend to dip and inventory rises. In the spring and summer month’s home sales increase since family’s wants to move while the kids are between school years.
A great place to look at articles is Yahoo Finance. There are some enlightening articles in there. However, you have to look at your market. I live in California and my condo has stayed flat over the past year while detached homes have declined quite a bit in value. It’s all about inventory. The more inventory you have available the more bargaining power you will have as a home buyer.
2007-02-05 14:19:04 · answer #4 · answered by Michael 2 · 0⤊ 0⤋
Can't site you any sources, but if you live in an area where it gets cold during the winter that may be true. Think about it -- if you have a house in upstate New York that you want to sell and Christmas is coming, you know that you'll have to pay to keep that place heated during the winter months (as well as paying the mortgage payment on it) as long as you don't sell it. Every month you keep it you're sort of "losing" money on it because you're not getting anything for it and you have to pay into it just to protect the house from the elements. So this year-end price drop phenomenon may be real...
2007-02-05 13:41:31 · answer #5 · answered by sarge927 7 · 0⤊ 0⤋
In many markets, real estate sales are mostly seasonal. Families tend to shop in spring and move early summer, when school is out. Most of the appreciation gains in home values happen in spring, and level out for the rest of the year.
However, there's generally fewer buyers later in the year, so homes that are on the market are competing harder for buyers. Not many people want to move around the holidays, so if you're willing to, you could potentially strike a better deal.
2007-02-05 13:47:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The housing market fluctuates. There has been a recent drop in home sales, but any speculation into the future home sales is just educated guesses. You would also want to research the particular area where you are buying a house, as some market have prices that are continuing to rise.
2007-02-05 13:40:33 · answer #7 · answered by Shelley 4 · 1⤊ 1⤋
Winter is the time houses are slow down. Most home buyers don't want to move in Winter.
If you buy a house in Summer, you are likely to pay more.
2007-02-05 13:41:53 · answer #8 · answered by Henry 4 · 0⤊ 0⤋
I'm no authority on this subject but in my opinion, price have already dropped a large amount and it's a good time to buy now. Be sure to make a low ball offer and they might actually take it.
2007-02-05 13:40:25 · answer #9 · answered by Tim S 1 · 0⤊ 0⤋
In general, house prices are better around Nov and Dec (for buyers) and they are better around May - July (for sellers).
I don't know about a specific drop in prices for the end of this year.
2007-02-05 13:41:06 · answer #10 · answered by teran_realtor 7 · 1⤊ 1⤋