Is now a good time to buy a house?

What do you think will happen to housing prices, in the near and long term, in the southwest region of the country?

Specifically the areas hit hardest by foreclosures.

CA, NV, AZ

I'm going to hold my tounge, on my opinion, until a few people have expressed thier opinions.

Thanks

My own personal opinion would be if you can afford to - buy rural. A small property that will enable you to become self sufficient I dont think house prices will be rising in a hurry.

[edit on 14-10-2008 by destiny-fate]

The old maxim is 'buy low, sell high.' So, yeah, it'd be a great time to buy a house since prices are falling. Of course this assumes that you can afford it, that you can still get a loan, and that you don't think we're heading for total financial/national collapse.

Originally posted by Vault-D
...that you don't think we're heading for total financial/national collapse.

Disagree, if there is a total collapse then there will probably be too many homes to foreclose upon and you will be wanting the land for production.

Yeah i have heard there is really nothing to show any future improvement in hose prices. I have heard some economists say it is possible for housign prices in some parts to go down another 50% as it will remain very difficult for the average person to get financing.

But here in Texas we are doing pretty well. We are actually having pretty stable house prices. Probably because all the Californians are moving here and buying the same size houses for about a quarter of what they cost in California.

In austin tx, theres no slow down at all! There building massive condominiums and apartments on every open space. And property values are increasing so fasr that all the older smaller buildings are being replaced with taller more efficient buildings that people can afford.

So i think it really matters on where you would be looking to buy a hosue.

Originally posted by Mainer

Originally posted by Vault-D
...that you don't think we're heading for total financial/national collapse.

Disagree, if there is a total collapse then there will probably be too many homes to foreclose upon and you will be wanting the land for production.

I guess i'm thinking of "total collapse" differently...it wouldn't matter if there were too many homes to foreclose, as there wouldn't be anyone bothering to try to foreclose. I meant a Mad Max, subsistence farming and shotguns kind of total collapse. In that case, it wouldn't matter a bit who owned what land on paper...it would matter who could seize it and hold it by force.

It's about judging the collapse, too...if you think house prices will fall another 50% more, then by all means hold off on buying until then.

As it has been said, I would buy property. And make the necessary adjustments to the house so that you could be completely self-sustained. Solar Panels, Hydro-electricity ETC...that kind of thing - if you can afford it of course.

My parents are actually looking to move out of town and into the boonies....I think its a wise choice.

- Carrot

Now is a good time to buy a HORSE.

This is not a one liner, Wilbur.

I'd say that right now is about as good as it will ever get. Super low interest rates, flooded market, buyer's market, super deals, and the value can only go up. Rapidly.

Originally posted by dooper
... the value can only go up. Rapidly.

The state unemployment office ran out of money last week.

[edit on 14-10-2008 by In nothing we trust]

I thought the timing was so good, I just did it!

Look for bargains. There is still a lot of overpriced real estate out there. But the bargains do exist, and yes, prices will begin to rise again after we sort this mess out (and are on our way to the next mess).

Originally posted by ghostlandseller
In austin tx, theres no slow down at all! ... all the Californians are moving here and buying the same size houses for about a quarter of what they cost in California.

That's part of what happened in Arizona and Nevada.

Crazy Californians with home equity money from thier homes in California, bought masses of investment homes and drove up the prices beyond what the local average income could support.

People will borrow as much money as the bank will allow them and more. If Bush and the boys really want to fix the economy they'll encourage the banks to start lending money to everyone that has a pulse, no verifiable income, poor credit and no common sense again.

Another way that they could fix the economy would be to extend 100% credit lines on the equity built up in peoples homes. They could also start approving everyone and thier dog for free and easy credit cards again.

[edit on 14-10-2008 by In nothing we trust]

Interest rates are going up and fast. It's hard to get loans unless you've got perfect credit, 20-30% down in cash, and bring home well over 3x in monthly income to what the potential mortgage payment will be. Housing prices in many areas of the country are still well over what they should be based on wages.

I don't think it will be a good time to buy a house until prices fall even further or until wages go up.

Originally posted by Grumble
There is still a lot of overpriced real estate out there.

Still seeing some hold outs here, hoping for thier government bailout and rescue package.

The banks can afford to hold thier inventory for a few years now that the U.S. department of real estate can make foreclosed properties disappear into a black hole. We'll probably be seeing foreclosed homes that have been abandoned for 5 years reappearing on the market in 2013.

There really isn't a thing such as a supply and demand driven free market anymore. It's all slight of hand and manipulation now more than ever.

[edit on 14-10-2008 by In nothing we trust]

If you're looking for a house to live in, anytime or now is the time to buy if you're in a position to do so. As long as you can make the payments why should it matter if the prices go up or down? You're buying it to live there and you can worry about the selling price at that time.

Personally, I think the market is going to continue tanking for another year or two at least. In my area houses still cost more than twice as much as they did 10 years ago. While there may be bargains in NV & AZ - CA is still a rip off unless you need to live there or have lots of money.

Don't listen to brokers, bankers or real estate workers, as they've been saying the market hit bottom every other month for the past 18.

If I was thinking about buying I would go out and look at houses every month or at least scan the net and just watch how things are going. You will see the trends and when the market starts to go back up there will always be stragglers that may be a bargain for a few months.


[edit on 15-10-2008 by verylowfrequency]

Depends on whether you would need a mortgage. Personally, I think prices will further decrease. If you need a (significant) mortgage you could get into troubles when the economy collapses and the bank will kick you out of your house as you cannot pay off debts (due to inflation or unemployment).

[edit on 15-10-2008 by Mdv2]

reply to post by Mdv2


Unless you pay cash, and buy land far away from a major city, you would be out of your mind to go into debt. IMHO, the bottom is no where close yet and I lean towards the total economic meltdown scenario.

[edit on 15-10-2008 by Pinktip]

Buy land, they dont make it any more.

Unfortunately for you, the three areas that you are considering buying in are three of the most volatile and uncertain amrkets in the country. Value juicing and over building in recent years has made it all but impossible to determine what the real actual value of a property is.


My advice, if you are somewhat well qualified and serious about buying now, would be to first take some time and examine the foreclosed properties in your area of interest. There will certainly be no shortage of these properties where you are looking (CA, NV, AZ). Many times these lenders will be desperate to unload a home that has been foreclosed on and will sell for the amount owed by the previous owner, which could equate to a huge reduction in cost to you.

My brother purchased a foreclosed home this past May for $175,000, a 2 story that was built in 2005. He put around $10,000 in it to update and remodel. The house just re-appraised at almost $300,000. Instant $100K in equity.

It sounds like you will require financing, so your best bet would be to look into an FHA loan. They will go up to 95% LTV on a purchase and currently have excellent rates around 5.5-5.9% with minimal PMI. You will need a FICO score of 600+ and you cannot have any collections, liens or judgments against you on your credit report. If you meet this criteria and have 2 years or better of steady employment with W2's to verify income, you can qualify without much issue.

They are still lending moey through FHA so if you need financing it is there.


Just my $0.02 for ya...good luck.

What are mortgage interest like in the US? In Holland the cheapest is around 5%.