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JonB
LIF Zygote
Member since 2/08 1 total post
Name:
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Re: Would you buy a home right now
I would definitely not buy a house right now. The house prices were bid up illogically with the help of 0% down mortgages, sub prime, and interest only mortgages. Now that these people cannot buy houses, the prices must come down since fewer people will be willing to pay these outrageous prices to live here. It is simply the law of supply and demand. If more people are trying to sell their homes than are willing to buy, prices will fall.
Before the insanity of irrational speculation took over the housing market, people used to pay only 2.5 times their income with a 20% downpayment. If a family makes $80,000, 2.5 times the income would be $200,000 that the family should borrow.
With the 20% downpayment, the highest price house a family with an $80,000 income should purchase is $250,000?
This is why all of the young people are moving out of Long Island.
Message edited 2/22/2008 12:07:41 PM.
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Posted 2/22/08 12:05 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
browneyedgirl
family is all that matters
Member since 6/06 6513 total posts
Name:
browneyes
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Re: Would you buy a home right now
i didn't buy my house solely for investment. we needed a home and had the money and the price was right. i wouldn't wait to buy if you have the money and like the place. that's what really matters.
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| Posted 2/22/08 12:11 PM |
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bigspender
Back to school
Member since 4/07 1385 total posts
Name:
Irene
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Re: Would you buy a home right now
Posted by JonB
I would definitely not buy a house right now. The house prices were bid up illogically with the help of 0% down mortgages, sub prime, and interest only mortgages. Now that these people cannot buy houses, the prices must come down since fewer people will be willing to pay these outrageous prices to live here. It is simply the law of supply and demand. If more people are trying to sell their homes than are willing to buy, prices will fall.
Before the insanity of irrational speculation took over the housing market, people used to pay only 2.5 times their income with a 20% downpayment. If a family makes $80,000, 2.5 times the income would be $200,000 that the family should borrow.
With the 20% downpayment, the highest price house a family with an $80,000 income should purchase is $250,000?
This is why all of the young people are moving out of Long Island.
Could not agree with you more
Supply and Demand.
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| Posted 2/22/08 12:14 PM |
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MrsBlueSash
Love my sailor
Member since 6/05 5793 total posts
Name:
Christian
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Re: Would you buy a home right now
Heck yeah! I'd definitely be buying now. Great prices, low rates, lots to pick from...I say go for it. If you plan to stay there at least 5 years you'll be fine. You can try to really predict the market and find EXACTLY the right time to buy but that is hard. If you find a great place I say go for it.
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| Posted 2/22/08 12:30 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Would you buy a home right now
Posted by MrsBlueSash
Heck yeah! I'd definitely be buying now. Great prices, low rates, lots to pick from...I say go for it. If you plan to stay there at least 5 years you'll be fine. You can try to really predict the market and find EXACTLY the right time to buy but that is hard. If you find a great place I say go for it.
ITA!
and on another note, a house just sold on my block in less than 2 weeks. Asking price was only 3% less than what I paid for my larger, more updated house in december 06 (i like to say i started the downward price trend in my neighborhood )
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| Posted 2/22/08 12:32 PM |
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MrsBlueSash
Love my sailor
Member since 6/05 5793 total posts
Name:
Christian
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Re: Would you buy a home right now
Posted by Sassyz75
I just saw an article that basically compared buying now to waiting a year.
basically if you buy now w. the present interest rate you'd pay less than if you bought a year from now with prices down 10% and the rate up a point.. so i think it's a good time to buy- we're actually hopefully going to pull the trigger soon.
ITA agree with this. Prices will go down more but at some point late this year interest rates will have to hold and possibly go up to hold off inflation. I think all that will happen after the election though. You really can't predict the perfect point to buy. I might wait till after the Fed next meets (Mar 18th) to see if they lower the rate any more, but then I would go into serious buying mode.
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| Posted 2/22/08 12:36 PM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
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Re: Would you buy a home right now
Posted by Meaghan729
Posted by MrsBlueSash
Heck yeah! I'd definitely be buying now. Great prices, low rates, lots to pick from...I say go for it. If you plan to stay there at least 5 years you'll be fine. You can try to really predict the market and find EXACTLY the right time to buy but that is hard. If you find a great place I say go for it.
ITA!
and on another note, a house just sold on my block in less than 2 weeks. Asking price was only 3% less than what I paid for my larger, more updated house in december 06 (i like to say i started the downward price trend in my neighborhood )
in regard to this, now more than ever there are exceptions to "the rules", the house across the street from me just sold for a record breaking $638,000. There has never been a house in my entire neighborhood of 800 homes that has sold for anything close to that even in the height of the market. I think it was a cash deal because I still can't even believe it appraised for that much, but it just goes to show anything can happen.
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| Posted 2/22/08 12:41 PM |
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