Do you think the housing crisis will get worse? Is this a good time to buy a home or should one wait?

Question

I'm in southern california

Answer 1

The housing crisis hasn't even begun yet. You'll see the full effect in the late Fall of 2008.

Answer 2

I don't think there is an overall housing crisis. The housing "crisis" that everyone is referring to is only the subprime segment, and within that segment only those with Adjustable Rate Mortgages. It is a small segment of ALL mortgages in the US.

However, only you can answer the question if it is good for you. If you can afford a house payment that is no more than 25-30% of your take home pay (and I would recommend being debt free and having at least a 20% down payment) then it may be a good time for you. It definitely is a buyer's market with builders and sellers offering all types of incentives for buyers.

Answer 3

I am in the same situation - I was reading in the LA times that some experts believe that the housing situation will continue to get worse (better for us buyers) all the way into 2009 - 2010. This waas assuming there are no drastic changes in the economy to change that but it sounds to me like at least waiting aanother year is a good idea. My wife and I are trying to save up for a deposit (also in southern cal) but at the rate we are going we need about 2 years to have a really good deposit so I hope what I was reading is right. :) good luck!

Answer 4

The latest numbers in Georgia showed our state hit "bottom" October 31, 2007. We have seen a slow moving 1.4% increase since in homes sold. What you see on the news and read is the national average. Fortunately the North Atlanta/South Forsyth area has not been hit as "hard" with a decrease in home value prior 18 months through October this year of 4.00%, I think nationally it is approximately 12%.

It is a "buyer's market" NOW. Builders and current owners have drastically reduced sales prices combined with the lowering of interest rates, BUY NOW. Donald Trump even says buy now, it is a good investment for the price.

Answer 5

Well if you listened to all the experts back in 1968 the sky was falling back then too.
If you where listing to all the experts that where telling you to buy in 1992 you would of lost your shirt.
But the funny thing was it didn`t end there.
And in 2007 they are telling you the same sky is falling.
Lets fo back in time just a bit in 1960`s homes where selling in my area for a 3 bedroom 2 bath home for $18,900
In 1980`s the hame was selling for in the low $80,000s
in 1992 the homes where selling for about $169,000
in 2005 the home was selling at 250,000
in 2007 this same home is selling in the high $400k`s
hmm what kind of trend do we see here?

Answer 6

My opinion, the worst is yet to come. When asked that question in the early 1980's my response would have been,
"you're already a day late." Having seen the debacle of the Saving's & Loans in the late 1980's and being witness to the insanity on Wall Street and the credit markets now, I sure would hate to make my move at this time.

Answer 7

I am not sure about southern california, but I live in south carolina and people are buying up houses like crazy. I think it is because land is becoming so expensive here and the interest rates are going down.

Answer 8

the government is about to bail out the mortgage industry by just giving them money so if you wanna buy, id shop, shop, shop, until you find the perfect home. then make a very low offer, sometimes people are desperate. you just might luck into something good. markets are constantly changing though so stay on top of things, listen to business reports and keep up with the trends. :D

Answer 9

The housing disaster grow to be a results of undesirable loans made to those that often does not qualify. The skills for a private loan is set by potential of the wholesale lender who will ultimately purchase the deepest loan from a loan business enterprise or financial enterprise. Deregulation allowed agencies like inventory brokerages to function as banks. and because they weren't banks, they weren't project to banking policies yet they have been setting up the talents for the undesirable loans. Then they bought those undesirable loans with "ensures", if truth be told coverage to traders around the international, yet considering that they weren't coverage firms they did no longer ought to abide by potential of those policies the two. So whilst all those undesirable loans went undesirable, the promises have been no solid because of the fact there have been no materials to diminish back the coverage. It wasn't Bush's fault on the instant who enable this to proceed as quickly as they have been warned, it grow to be the SEC working decrease than him. They desperate to enable the industry regulate itself and we can be suffering for an fairly long term to return. have been given it? edit: all of those solutions that blame the government are incorrect. It grow to be wall street. the government purely enable them to proceed because of the fact the subject persisted to construct. i do no longer be attentive to what rules with "comfortable standards" you're talking approximately. The skills for a private loan are set by potential of the loan industry that buys the loans.

Answer 10

This is a great time to buy as long as finances are no problem. There will be many more foreclosures to come, so for better deals, you could wait awhile. It seems terrible to profit from others misfortunes, but those losing their home to foreclosure will do so whether you step in to buy or not.