good time to buy?

M

meccos12

New member
Wages are low, cash buyers are pulling out, home sales are in the pits despite record low interest rates, home prices are at or even higher in some places to 2006 prices (which we all agree was a bubble), affordability is near lows.... 

so someone tell me why it would be a good time to buy now rather than continue to rent. 

I asked this same question to a realtor at an open house last weekend... she said that rising interests rates will increase housing prices.  I immediately stopped talking to her and walked out...
 
Don't buy just to buy.

Interest rates are low, the Fed is hinting on increasing it later this year.

The agent will say whatever. Keep in mind price reductions are happening.
 
For the types of properties you are looking at, are they above at or below rental parity?  Rental parity isn't 100% accurate as there is real opportunity cost to locking away the down payment and you have real maintenance costs.  Also rents can drop.  On flip side, house prices can appreciate and rents can go up.  Hence, if its below or pretty close to rental parity, I don't think you risk much on a 10 year time horizon. 

We were house shopping for nearly a decade and every year felt worse as we constantly seemed to be priced out.  After crash, there still wasn't any big signal saying "BUY NOW" and if anything, people seemed apprehensive of buying for fear of an even bigger price drop.  Ie, there will never be an obvious signal to purchase.
 
You must log in or register to reply here.
Back
Top