Zillow Advice: Zestimates - buying a home now with falling prices = underwater in a few monthts? http://www.zillow.com/advice-thread/buying-a-home-now-with-falling-prices-underwater-in-a-few-monthts/390562/ Zillow Advice | Zillow Real Estate Nice post and links Dan.To ... http://www.zillow.com/advice-thread/buying-a-home-now-with-falling-prices-underwater-in-a-few-monthts/390562/ Nice post and links Dan.<br/><br/>To the OP, I would personally wait a year or two.&nbsp; You would save money for a bigger down payment and get a lower priced home in the future.&nbsp; It is a win-win to wait a couple of years. Sun, 13 Mar 2011 05:26:00 GMT http://www.zillow.com/advice-thread/buying-a-home-now-with-falling-prices-underwater-in-a-few-monthts/390562/ 2011-03-13T05:26:00Z Great post by Dan. &nbsp;I ... http://www.zillow.com/advice-thread/buying-a-home-now-with-falling-prices-underwater-in-a-few-monthts/390562/ Great post by Dan. &nbsp;I would like to add a few thoughts. &nbsp;<br/><br/>First, you won't be upside down on the mortgage until the house has dropped below your mortgage price which(hopefully) will be 10%-20% less than the sale price because of your down payment. &nbsp;<br/><br/>Second, I agree with Dan that you shouldn't assume that the value won't continue to fall just because of a hunch. &nbsp;There are many factors to consider and, without that information, there is no reason to assume that the value of a $300k home couldn't drop to $50k. &nbsp;Anything is possible. <br/><br/>Lastly, if you've done your homework and you think that value of that home has reached or is near the bottom then consider that you won't "lose" money if it drops a bit from your purchase price. &nbsp;You will lose equity but gains or losses are only realized with the sale of the property. &nbsp;I suggest you analyze to costs of renting vs. buying in your area. &nbsp;A home costs a lot more than just the mortgage payment. Sun, 13 Mar 2011 05:08:00 GMT http://www.zillow.com/advice-thread/buying-a-home-now-with-falling-prices-underwater-in-a-few-monthts/390562/ 2011-03-13T05:08:00Z I look at prices much more ... http://www.zillow.com/advice-thread/buying-a-home-now-with-falling-prices-underwater-in-a-few-monthts/390562/ I look at prices much more simply. Most people agree that the housing bubble started between 1998 and 2000. I look for 1997 prices and adjust up about 35% for inflation. If prices are above that they must drop more.<br/><br/>High unemployment, low interest rates that increase, increasing foreclosures, high months of inventory, and more can all work to drive house prices lower.<br/><br/>Click on the local info tab above. Type your city and state in the search bar. The results will give you a chance to see a lot about what is going on in your market.<br/><br/>This is a real estate price prediction site. See what it says for your state.<br/><a href="http://www.housingpredictor.com/" rel="nofollow">http://www.housingpredictor.com/</a><br/><br/><br/><a href="http://www.businessinsider.com/peter-schiff-home-prices-2010-12#comment-4d1f763349e2ae9711260000" rel="nofollow">Peter Schiff: Here's Why Home Prices Have To Decline At Least 20% And Probably More</a> <br/><br/><a href="http://dallasfed.org/research/eclett/2010/el1014.html" rel="nofollow">The Fallacy of a Pain-Free Path to a Healthy Housing Market - Economic Letter, December 2010 - FRB Dallas</a>&nbsp; &lt;-- the federal reserve. They make monetary policy<br/><br/><a href="http://www.businessinsider.com/the-future-aint-what-it-used-to-be-predictions-for-the-2011-real-estate-market-2010-12" rel="nofollow">An Awful 2011 Could Crush The Middle Class Dream Of Home Ownership</a> <br/><br/><a href="http://www.businessinsider.com/2011-us-housing-crash-2011-1" rel="nofollow">The Story Of 2011 Will Be The Second US Housing Crash</a> <br/><br/>Look at this it shows a graph of what house prices did. There is one link that shows the lifecycle of a bubble. When a bubble dies the end price is well below the beginning price. If you do not beleive it can happen look at Japans house prices since the 80's. You will see a big spike up and years and years of prices dropping every year.<br/><a href="../../Do-you-know-what-the-housing-bubble-really-looks-like-What-were-normal-sales-like-over-100-years/377656/" rel="nofollow">Do you know what the housing bubble really looks like? ... - Zillow Real Estate Advice</a> <br/> Sun, 13 Mar 2011 04:40:00 GMT http://www.zillow.com/advice-thread/buying-a-home-now-with-falling-prices-underwater-in-a-few-monthts/390562/ 2011-03-13T04:40:00Z