I live in Maryland. Washington DC metro area. I've been waiting for the right time to jump in and buy a townhouse that i want to live in for at least 10 years. Yes, its my first house, no flipping, primary resident. However, reading about real estate in the past 3 months have been driving me crazy. I'm the kind that will have sleepless nights for months before making investments decisions, buying a car e.t.c
I don't want to have to regret not waiting if i jump in right now and the housing market falls a bit lower. At the same time, i'm no fortune teller.
What do you think i should do. Wait or buy now?. How about waiting 8 more months or so. Please also remember that mortgage rate is creeping up slowly.
Please i need only respectful and honest advice. If all you have is harsh, hostile comments please just steer clear.
Thanks
JI
2007-06-26 08:34:01 · 8 answers · asked by progress 2 in Business & Finance ➔ Renting & Real Estate
I won't be harsh, but I WILL be realistic. If ANY of us had access to that real estate crystal ball, we would not be sitting here answering these questions.
Your guess is as good as mine, as to whether or not the market has hit bottom. A recent article in USAToday (quoting industry 'experts') indicates that the market may soften even a bit farther, and might take another eight months to fully bottom out. However, is this coming softening enough to absorb what might happen to interest rates in the interim ?
2007-06-26 08:39:50 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
This is exactly the situation I am in, same locations, same concerns and sleeplessness. This is my question too minus 10 years.
Based on my research and advice received from other smart(not so smart) people. This may not be a good time. My thought is that with in next two years the economy will go south big time (probably after Nov,2008) and I will not invest until then (rock bottom prices). But don't believe me if I was so smart I wouldn't be here.
Your intention is to stay there for 10 years which is a long time when the bubble/cycle/economy whatever you may call will do a full cycle and you may not be loosing anything at all.
2007-06-26 09:23:04 · answer #2 · answered by ABRAKADABRA 1 · 0⤊ 0⤋
Go ahead and get pre-approval from a lender. It can be invaluable when you are ready to make an offer on a house. There's no obligation on your part and you can qualify for the prevailing interest rate.
Waiting until Sept. or Oct. can save you a bit of money, too. We usually have a slump between Sept. and March, and it's already a buyer's market.
No one can tell what the market is going to do or where interest rates are headed. Do your research now, though, and determine where you want to buy. Realtor.com is a good resource, as are the local newspapers. Be careful of "For Sale by Owner" signs. It's usually best to use a Realtor who can operate as a buyer's agent. They are trained to negotiate and look out for your best interests.
2007-06-26 08:59:53 · answer #3 · answered by Cheryl G 7 · 0⤊ 0⤋
Yourpropertypath.com does a news brief blog and this is an article via marketwatch that Im quoting
"Home prices in 10 major U.S. cities dropped at the fastest pace in 16 years during the 12 months ending in April, according to Standard & Poor's Case-Shiller home price index released Tuesday. Home prices in the 10 cities fell 2.7% on a year-over-year basis, the largest decline since September 1991. Meanwhile, prices in 20 cities dropped a record 2.1% year over year "No region is immune to weakening price returns.' Robert Shiller,"
Add to this, the prospects of rising interest rates and more supply due to sub prime problems and its easy to saee that waiting is a reasonable tactic.
2007-06-26 08:44:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
As usual, I agree with Acermill.
The conditions are great for people to enter the housing market. There are lots of properties on the market, it is a buyer's market and interest rates are favorable.
It doesn't hurt to look now, maybe you will find something that will push you off the fence.
2007-06-26 09:04:25 · answer #5 · answered by godged 7 · 0⤊ 0⤋
It varies by area, but I think the DC area is one of the ones that is considered over-priced right now and expected to fall. Waiting a year won't hurt, but then again, how much will you pay in rent over that year vs. how much would you pay in interest/risk losing in a drop?
2007-06-26 08:38:57 · answer #6 · answered by sortaclarksville 5 · 0⤊ 0⤋
One word: WAIT. Look at the housing data. For the last 5 months, prices on homes have declined steadily.
2007-06-26 08:40:46 · answer #7 · answered by iz R 2 · 0⤊ 0⤋
Wait a bit. - The bubble is about to burst.
2007-06-26 08:41:36 · answer #8 · answered by Irv S 7 · 0⤊ 0⤋