Question for buyers who are waiting out the market

What needs to happen before you start seriously looking? When will you feel comfortable enough with the market to buy a house? We are actively looking now, so I'm really just being curious.

Re: Question for buyers who are waiting out the market

we don't think the market has hit bottom yet

Re: Question for buyers who are waiting out the market

I guess part of my question is what indicators will tell you it's hit bottom? Are you trying to hit it RIGHT as that happens? Are you concerned about inventory levels when it does happen?

Re: Question for buyers who are waiting out the market

I should say I am moving to FL

where there are 3 homes for every buyer

but even if I was staying in NY I would not be concerned about inventory

1 out of 10 home owners are in trouble now and it's people that you wouldn't think (I work in the industry and people on LI in million dollar + homes are behind)

and it's only the beginning of rate adjustments

it's going to be a while before prices go up

Re: Question for buyers who are waiting out the market

We're waiting it out. Prices have dropped tremendously. The areas we want to be in have had a slight drop, but not enough to make us jump on anything yet.

I think we're waiting until February to start seriously looking again. But if we saw an awesome deal we'd go for it. I think we could see another big dip in prices before they start to rise again.

Re: Question for buyers who are waiting out the market

I am not looking, but agree with Beth. I think that it'll be a while before you see house prices go up and there are a lot of people that will need to refi in 2010, 2011, etc. that may keep this cycle going.

That said, if you are able to find your dream house and get it at a price you are comfortable with and an interest rate that is good, I would go for it.

Re: Question for buyers who are waiting out the market

We were waiting for prices to go lower but if this opportunity we've been presented with pans out, then we will be buying sooner rather than later.

Re: Question for buyers who are waiting out the market

Re: Question for buyers who are waiting out the market

Re: Question for buyers who are waiting out the market

I know it's all a big guessing game at this point, but when do you think prices will bottom out and start rising again.

On another note...I've noticed some neighborhoods on LI just don't budge on prices. I guess either people don't HAVE to move...or the neighborhood is just THAT good.

Re: Question for buyers who are waiting out the market

I just heard on a news channel that one out of 7 home owners will be facing foreclosure in the next few years

so until this mess is over- home prices are not rising

Re: Question for buyers who are waiting out the market

Yikes...that's just really bad. I mean...I guess it's good too for people looking to buy. But high foreclosure rates can ruin some neighborhoods.

Re: Question for buyers who are waiting out the market

I'm always looking to buy additional investment properties although I already own my primary residence.
I do believe the housing market is NOT finished adjusting, I'm in the camp of people that "predicted" this mess was going to happen 2-3 years ago & I'm old enough & have enough personal real estate experience to know LI is NOT exempt.
Here's my opinion though, you are probably paying to live somewhere now, many renters pay $2000 a month or more for a nice place to live around here. If you are thinking about buying sooner, starting your life in your own home & not worrying about your lease ending or your landlord asking you to move out or whatever you should do it if you find a house you & love & it is easy for you to afford & you have a DP. You are paying to live somewhere now & to think the LI market will drop dramatically in the areas you would want to live & every first time homebuyer will be lucky enough to time it is unreasonable.
The other big factor that HAS to come into play if we are ever going to get out of this mess is this-historically when rates go down home prices go up & when home prices go down rates go up...I do not believe the fed can continue to manipulate the rates to keep them so low. While I believe they will stay low for a while I think at the end of this recession & when most people are SURE we've hit bottom, they will rise as they did in the early 1990's. Home buying is usually the biggest purchase people ever make but listening to the media & trying to time the market is just as risky as everyday people trying to get rich flipping houses.
Good luck!

Re: Question for buyers who are waiting out the market

Another thing to take into consideration is if they lower interest rates.

you will only pay $3K more over the life of the loan if you have a 400K mort at 4.5% vs a 350K mort at 5%.

waiting for the bottom, might cause you to miss great interest rates (if they drop more you can refi too)

Re: Question for buyers who are waiting out the market

Re: Question for buyers who are waiting out the market

Re: Question for buyers who are waiting out the market

Re: Question for buyers who are waiting out the market

but, do you think we will ever see rates at 4.5% (like the feds are talking about) again?


I don't think that has passed yet

and if the crap continues to hit the fan

who knows what the future holds....

Re: Question for buyers who are waiting out the market

well we have to sell our coop first ( bad) and we still need more $ for the down payment since our coop didn't appreciate much. so I would like to buy now but we will wait to see if the rates drop any further. I'm sure housing will drop more as well.

Re: Question for buyers who are waiting out the market

Re: Question for buyers who are waiting out the market

Re: Question for buyers who are waiting out the market

Re: Question for buyers who are waiting out the market

Re: Question for buyers who are waiting out the market

I totally agree. Don't just buy a house because it's a 'buyer's market'. Buying a house is a HUGE responsibility, in so many ways.

But for those that have been saving up and feel they are ready financially...it's a pretty good time to look.

Just learn from other's mistakes. Don't over-extend yourself! Crunch those numbers. House prices have come down, but those tax bills keep going up, up, up.

Bottom line...the right time, is different for everyone. Don't feel rushed...this market isn't going to shift to a seller's market for probably a few years.