is now a good time to buy a house or should i wait a little more?

Question

Hi, i live on San Francisco and we are trying to find a house around Oakland or Richmond, but we have a lot of people going on different direction, our realtor of course said the better than now we are not going to have it; but we have heard that a lot of people have been disposes of their houses for the high payments etc, and persons near to us they want us to buy a house now to fix a little but sale it later, im confused.

Answer 1

With the housing market on life support, just about everyone I talk to these days is asking some version of this question. So rather than answering for one person in a specific market, I'll tackle the issue generically.

Nineteen months past its peak, residential real estate continues to weaken, with prices and sales down and inventories rising across the U.S. For sellers, this is ghastly news, of course, but buyers have mixed feelings. On the one hand, after years of bidding wars, instant offers without home inspections and even penning poems to convince sellers to hand over the keys, it's delightful to finally have choices and negotiating room. On the other hand, it's a bit frightening to make a commitment now, when there's a chance that prices could drop even lower.

Caught between opportunity and risk, what's a buyer to do? Here are some ideas to keep in mind in our current "buyer's market":

Buyers, not sellers, set prices. This may seem counterintuitive, but all a seller can do is suggest an asking price. The real price is whatever a buyer pays for it.

In 2004 and 2005, home prices rose because buyers flooded the market -- now prices are falling because buyers are sitting on the sidelines. Meanwhile, the number of homes being built hasn't changed drastically; rather, supply is growing because existing-home sellers can't figure out what buyers are now willing to pay, so their homes are sitting on the market.

Comps may not matter now. When markets are in upheaval, either up or down, recent sales of comparable houses are of less value than they are in more stable times. So take a look at public records, which are now often listed on Web sites, as well as Internet tools like Zillow and Trulia. But take them all with a grain of salt. They may be guiding sellers as they set their asking prices, but they don't necessarily indicate what a seller will accept, since the market is in flux.

Agents are talking. When times are good, listing agents typically reveal little about their sellers' motivations or pricing strategies … which is as it should be. Listing agents have a duty to get the best possible deal for the seller.

But agents don't get paid unless deals are made, and many are hurting now. So many have looser lips than usual -- something that sellers should keep in mind when they tell their agents about why they're moving and what price they'd ultimately expect. Buyers, however, aren't breaking any rules by asking, and the information they receive could help them decide what and when to bid.

Timing the market isn't possible. Although many economists predict that nationally, housing still has a way to go to reach bottom, you don't have to wait for that to happen to get a good deal. In fact, it's better to buy when housing is trending down than when it reaches the floor, since at that exact moment, the balance of power begins to shift toward the seller again. So if you see a house you like and can afford, make a bid now. And don't worry about insulting sellers with a "lowball" offer. They may be desperate to move because of a new job, marriage, divorce, overstretched bank account or other motive. Yours may be the only bid they've received in months and they may be very glad to have it.

Answer 2

Right now is a buyers market. I expect that it will be at least another before there any signs of that turning around. Right now you should be able to get a good/great deal. You can probably get people to pay part or most of the closing costs. Market value will probably keep going down for awhile. You might be able to make a better deal in six months, but that is a gamble, will you find the right house at the right price. I would try to buy it when I found it.

Fixing it up and selling it after the market sounds like a good plan to me.pp

Answer 3

Nobody can really tell where the market goes, theoretically the overheated market should go down, but it has been happening slowly. Most houses are over priced ( the old saying: asking for less is stupid). Therefore it all depends on the price asked.
Foreclosure listings are often a place to find a bargain, these houses may not be in the best and perfect condition, but for much less it could be easily ignored.

My own rule of thumb was, counting the rent paid against the price of the house minus property taxes and insurance over a period of ten years. I bought my house way too late when the prices were creeping up steadily, but still, the house paid for itself in only 7 years, counting the rent not paid, with the increased possibilities of using the garage as a workshop it was actually only 4 years and from then on it was all pure savings.

Answer 4

It is a great time to buy a house. There is alot of inventory, it is a buyer's market, and interest rates are favorable.

Alot of people got themselves in trouble by getting into mortgages they couldn't afford. They got qualified by unscrupulous lenders for an adjustable rate mortgage, which started with very low interest rates, so they could afford the big house. When the interest rates adjusted higher, the mortgage amounts went up. The RE market was not seeing the increases it had, so the homes could not be refinanced to get a more reasonable rate. So, those homeowners are now facing foreclosure.

Hope that helps!

Answer 5

If you are financially secure...right now is a great time to buy a home...it is a buyers market. BUT....make sure that you are being realistic about what you can afford, otherwise you will be in the hard spot of trying to sell a home that you can not afford...but still have to make payments on...and for the exact same reason it is a good time to buy a home...it is a horrible time to attempt to sell one. Best of luck!

Answer 6

you have to look into your own situation, are you ready to buy a house. Especially in San fran , although the market has gone down your area has not gone down that much. If you have the $$$ you should find the worst house on the block and buy it, fix it up and in a few years(5) cash out. It will seem scary and crazy but dont worry if you are careful about your investment and dont go over board on the upgrades than you will be ok.

Answer 7

I would wait 1 year.

with mortgage re-sets about to explode to the upside the longer you wait, the better the deal.

Mortgage re-sets are about to hit the real estate market big time.

Check these figures out.

MORTGAGE RE-SETS EVERY MONTH TILL NEXT YEAR

AUG 52 BILLION
SEP 58 BILLION
OCT 55 BILLION
NOV 52 BILLION
DEC 58 BILLION
JAN 80 BILLION WOW
FEB 88 BILLION WOW, WOW
MARCH 110 BILLION OH MY GOD!
APRIL 92 BILLION
MAY 76 BILLION
JUNE 75 BILLION
JULY 50 BILLION
AUG 35 BILLION
SEP 26 BILLION
OCT 20 BILLION
NOV 15 BILLION
DEC 17 BILLION

WHO CARES ABOUT MORTGAGE RE-SETS. EVERYONE SHOULD CARE!

Most of these people will NOT be able to afford the payments once the mortgage re-sets to a higher interest rate and cannot qualify for "Regular" mortgages.

Their only option is to:
1. Stop making the payment and let it go to foreclosure.
2. Try and sell the home and get out from under the payment.

P.S. Expect a huge amount of inventory to be added to the existing home sales over the next year.

P.S.S. If any knucklehead tried and tells you the housing slump is over, remember these re-set figures.

Terry S.

Answer 8

Right now I don't believe it's a buyer or sellers market. The market value it way too high. Some realtor's may argue that point, but if you're doing all right where you are, I would wait a while longer and see if something comes your way.

Good Luck!

Answer 9

Godged has the right idea
INVENTORY is high but it is due to the high number of foreclosures throughout the country,

you can also get a good deal on foreclosed property...you put in a bid on the steps of the courthouse..high bidder wins!

you can get this list from your county tax accessor / banks / local financial institutions / and RealtyTrac.com

good luck

Answer 10

I'm confused, too. The way you wrote your question doesn't make much sense. Sorry