Why are you not buying during these unique opportunities?

This week alone (8/22/2010) the media has thrusted out a plethera of "doom & gloom" about the Housing Marketplace. But as briefly noted during the news run or an article, somewhere in between the lines it is noted that prices in some areas are at record lows or at levels 5-10 years prior to the "Housing Boom". If this is so and you are gainfully employed or you have access to capital that can provide you with a 1st time home buying or Investment opportunity, why are we trigger shy? Why wait until the economy is going upward when prices may increase? Remember There is always an opportunity during times of a recession! Most of America's best & brightest have come through during times like these!

This question is not asked to be patronizing of your freedom of choice, but to spark intelligent thought.

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August 27 2010 - Columbus
We think we've answered this question for you!
 
 

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we have 12 months supply of homes on the market, an absolute record for this crash.

Last time supply hit 11 months, home prices dropped for an entire year, in some places well over 30%. We have just as many if not more foreclosures happening this year as last year, with 1/3 less buying going on now that the buyer's credit is gone.

So, to anyone who can think at all, today is a very risky day to buy a home, as prices are likely to drop alot.

"why wait till the economy is going upwards" - You might want to try reading the business page of your newspaper, see if there is any real risk of the economy going upwards... Nope, GDP growth for last quarter was just revised way down, unemployment claims have climbed, etc. NO sign at all of any pickup in the next 12 months or so.
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August 27 2010
Good advice, but the housing market is in such flux. Buyers are not sure when to purchase. Those that need new housing will purchase and investors will also. Caution is advisable with so much negative equity.

Look for great deals in this current market, good deals will do, but great deals are there!

Good Luck!

James Callas - Realtor®
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August 27 2010
Profile picture for Pasadenan
The better question is why you are not reading what is already posted?

Perhaps a member of "Not About to Read"?

There are multiple active threads on this discussion, and there is the "search" feature.

If you can't use Zillow's search feature, I wouldn't trust you to search anything else either.
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August 27 2010
Profile picture for dacolan
What happens to prices when demand falls precipitously (overpriced-house sales just plummeted 27%)?

What happens to prices when supply rises significantly? July showed an astounding 24.5 percent month-over-month increase in foreclosure starts, which dovetails with Treasury's latest report on HAMP cancellations (approx. 50% according to Treasury's numbers).

Less Demand + More Supply = Lower Prices
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August 27 2010
Profile picture for sunnyview
You want to know why I'm not buying a house or investment property right now? Check out the power point presentation August 2010 here about the state of the economy and how it relates to the real estate market. There is even a handy chart showing the artificial inflated price impact that the government buyers credit created.

Even the NAR bigwigs say I am losing nothing in terms of appreciation and in fact I may be avoiding more drops in the market by waiting. What you call "doom and gloom", I call market information.
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August 27 2010
The economists and statisticians who study the housing market, GNP, and the job market are now saying that we won't see recovery in many areas until 2012. These are the same professionals who, in 2009, were predicting recovery in 2011.
Kansas City, where I live, is one of the better places to be as far as jobs, house values and cost of living. What I'm seeing here are buyers (couples) who could afford to buy a $400,000 house deciding to buy a $200,000. Why? Because they want to be able to afford the mortgage on just one salary if something should happen to either job.
We may be 'trigger shy' because we all know people who have lost their jobs and then their homes. We are living in precarious times, Vashon. For some people, this may be the right time for them to buy a house; for others, it may not be. 
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September 06 2010
I would like to know how many buyers have tried to purchase and were denied.

Did you know that Bank of America (for example) does not deny anyone pre-approval for a loan? Now, actually getting that loan is a completely different story. I have heard that 11-27% of the loans they 'approve' actually close. Does anyone have better stats?
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September 07 2010
Profile picture for jazzy84
Sometimes I feel like people are pressured into buying everywhere. I'm not disagreeing with you at all but I just wanted to say: Is it really the right time to buy just because its what everone is saying?  Buying a home for $300,000 to get $8,000 next year on taxes. Doesn't really add up to me. A lot goes into buying a house. I see people losing their houses everyday day. It's easier to loose a house than to actually get a house. It's risky and also promising to get a house during this time.
Pros
You might be able to use your property as an investment.
Cons
You might loose your job and then you can't pay your mortgage.
Buying a house in this economic jungle is a very sensitive subject!
Thank you for you time!




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September 13 2010
Profile picture for the_country_hick
Do you understand that when rates go to 8% that means an effective housing cost inflation of over 46%? If incomes do not also go up by about 46% how can house prices not fall?

A $200K MORTGAGE at 4.375% costs $998.57 a month for 30 years.
At 8% a $200k mortgage costs $1,467.53 a month (both 30 year)

I remember seeing mortgage rates at 7.75% and thinking that was a real good rate. That means that 8% in the not to distant future is not unrealistic. It would really be more in line with normal interest costs based on historic norms ignoring the fed holding interest rates artificially low as they are now.
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September 13 2010
 
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