Zillow Advice: Rent vs. Buy - Should I buy now or wait a year?

Congrats on your new house ...

Tue, 05 May 2009 01:04:00 GMT

Congrats on your new house missixty! It sounds like you did your research and got a good deal for your situation where you can own for less than rent. I wish everybody bought just the way you did. I hope you enjoy your new place.

"Pending sales going up in ...

Tue, 05 May 2009 01:00:00 GMT

"Pending sales going up in March over Feb is like saying that temperatures are warmer in March than Feb. It's a seasonal adjustment and nothing to write home about"

The rise in the index may show a return to normal seasonal housing market patterns. Home sales typically rise in March from February, but last year, the pending sales index dropped 1% from February 2008, and the index of contracts in March 2008 was down 20% from March 2007. So the 1% gain in March 2009 over the same month last year shows a substantial change from the spring season of a year earlier.
In Southern California, the median home sales price has held steady at $250,000 from January through March -- that's less than half the peak median price set in 2007, according to San Diego research firm MDA DataQuick.
http://www.latimes.com/business/la-fi-homes5-2009may05,0,2234983.story

If you are buying a "home" ...

Mon, 04 May 2009 21:31:00 GMT

If you are buying a "home" get what pleases you, if you are buying a "house" get what makes financial sense. your home is where your stuff is. A house is a house. Realtors always refer to it as buying a "home". Unless you are homeless, you already have a home. Maybe not a house with a mortgage and expenses, but a home never the less. You are looking to buy a house, make it a sound financial decision and you will be happier.

Exactly my point!

Mon, 04 May 2009 20:46:00 GMT

Exactly my point!

I bought my first home ...

Mon, 04 May 2009 20:31:00 GMT

I bought my first home this year in Phoenix, yes im aware that it has one of the highest foreclosure rates in the country, but even so, I found a screaming deal and managed to secure a home for less than its appraised value as of right now. I got a 30 yo fixed FHA loan for about 4.5% and the home value is still almost $20K more than my mortgage loan. For me it was a good time to buy but it really is your decision. Plus my mortgage is less than what my rental costs were, so for me it was the best choice.

>If not now, when?Linda, ...

Mon, 04 May 2009 20:28:00 GMT

>If not now, when?

Linda,

Pending sales going up in March over Feb is like saying that temperatures are warmer in March than Feb. It's a seasonal adjustment and nothing to write home about.

Also, in almost all markets I have been following there have been HUGE price drops after the sales volume increases. Sales volume increasing is a good sign for Realtors as they may start getting checks again. Buyers who get in just as sales volumes start increasing will almost always pay more than those who wait until the market is more balanced - under 6 months inventory.

So, not now. When it makes financial sense to.

http://www.financialnewsusa.com/news/pending-home-sales-up-32If ...

Mon, 04 May 2009 20:21:00 GMT

http://www.financialnewsusa.com/news/pending-home-sales-up-32

If not now, when?

If you can make money or ...

Mon, 04 May 2009 20:15:00 GMT

If you can make money or equity going in then go for it. It's all about the TVM(Time Value of Money). If the market gets any worse you won't have to worry about getting any better deals unless you have all cash. Simply stated even with perfect credit you won't qaulify the banks will be out of business. The criterias for obtaining a loan are getting tighter and tighter every day.
Why pay your landlord's mortgage? Look at your overall financial situation and determine the benefits on one side and the disadvantages on the other and see how they stack up. Making that first purchase will always be a big nervous step of uncertainty until you actually do it.

"Convincing my wife however ...

Mon, 04 May 2009 19:53:00 GMT

"Convincing my wife however to continue to wait is problematic"
Yes, most of the housewive are not too much concern about inflation, deflation, the effect of interest rate or current of economy to the housing market.
even they don't know there is Zillow's website on earth.
They do what ever their friends or their relatives or their neighbors doing, as long as the payment is fit with their bubget, and the willing of the home ownership takeover on every the other concerns.
As Myself sometime thinking about the lost of the value of my properties, however the women in my family are still don't care. they still laugh and make fun to the others like normal.

I agree with you. Honestly, ...

Mon, 04 May 2009 19:28:00 GMT

I agree with you. Honestly, I just hope we make it out of this bubble. The damage has been so widespread. Our economy is resilient, but it sure has done a number in it for now.