Are you in the market for a home?

[Pete Violet]

I just put my house on the market in Attleboro. Check it out if you are interested.

http://vow.mlspin.com/idx/Details.aspx? ... d=BB301835

[Steve Solbo]

you're not leaving the area are you Pete?

[Pete Violet]

no staying local.

[Steve Solbo]

Good time to buy with the values plummeting.

[Matt DeAngelis]

Good time to buy with the values plummeting.

In that same breath, it is also a statement that it is a bad time to sell.

[Steve Solbo]

Good time to buy with the values plummeting.

In that same breath, it is also a statement that it is a bad time to sell.

Some truth to that. But there will always be people out there willing to buy. My wife works in the mortgage industry, they do more re-finances (understandable) and new sales during these types of times than any other time... also, people who like to flip houses are really on the prowl now since they can buy low.

[Bobby Direnzo]

Good time to buy with the values plummeting.

In that same breath, it is also a statement that it is a bad time to sell.

Some truth to that. But there will always be people out there willing to buy. My wife works in the mortgage industry, they do more re-finances (understandable) and new sales during these types of times than any other time... also, people who like to flip houses are really on the prowl now since they can buy low.

Some truth to that. You will never see the real estate market back to where it was in 2007, prices were out of control. House going for 300k are now selling for 200-225K. If you pay 300k for that particular house now (depending on location) your just an dope.

[Gary Cyr]

You will never see the real estate market back to where it was in 2007, prices were out of control. House going for 300k are now selling for 200-225K. If you pay 300k for that particular house now (depending on location) your just an dope.

Never is a very long time. The housing market will come back to where it was in 2007. Will I see it? Will Bob see it? I don't know,..but it will get there. Just as sure as the gallon of gas you used to buy for $1 is now $4 and the gallon of milk you could buy for $2 is now $4. I agree with Steve that most mortgage business right now is Refi's. With the 30yr rate now at 4.5% it opens up the market for a ton of refi's. There was the same type of housing bubble in the 80's. Real Estate then came way down and after a couple of decades it bubbled again. If you don't firmly believe that you are going to see at least a 30% increase in the value of your home over 30 years then you are better off renting. And those of us that have just purchased new homes in the past 3-4 years are the real dopes. Given a standard inflation rate of 2.5% the price of everything will double in 28 years. So a 30% increase in 30 yrs is less than standard inflation. Think about it!

[Steve Solbo]

You will never see the real estate market back to where it was in 2007, prices were out of control. House going for 300k are now selling for 200-225K. If you pay 300k for that particular house now (depending on location) your just an dope.

Never is a very long time. The housing market will come back to where it was in 2007. Will I see it? Will Bob see it? I don't know,..but it will get there. Just as sure as the gallon of gas you used to buy for $1 is now $4 and the gallon of milk you could buy for $2 is now $4. I agree with Steve that most mortgage business right now is Refi's. With the 30yr rate now at 4.5% it opens up the market for a ton of refi's. There was the same type of housing bubble in the 80's. Real Estate then came way down and after a couple of decades it bubbled again. If you don't firmly believe that you are going to see at least a 30% increase in the value of your home over 30 years then you are better off renting. And those of us that have just purchased new homes in the past 3-4 years are the real dopes. Given a standard inflation rate of 2.5% the price of everything will double in 28 years. So a 30% increase in 30 yrs is less than standard inflation. Think about it!

Rates are down in the 3's Gary... the 04-07 market will not come back unless the dollar regains it's value, which is unlikely for a long time.. you are right, never is a long time, but maybe my daughter will see it...

[Bill Stewart]

You young Pups who say "never" don't have a clue. It only took about 6-7 years for the residential market to come back from the nasty 89-90 downturn. As a market guy, I always keep my eye out for hyperbole, and "never coming back" is a great example. It is an excellent time to buy. Keep in mind that doesn't mean "I can buy and flip," because that would be a "hot" market--and that can be tough to buy into.

Sitting around a grill with my Ultimate homeys in 2006 (all but one younger than me, and only a couple homeowners), I listened to these guys lament how expensive r.e. was. Their unanimous conclusion was that r.e. doesn't go down. That right there was the clincher for me. When I pointed out 89-91, they weren't old enough to live through it, and the concession I got was, "ok, it might move sideways, but it never goes down."

You can take your fundamentals--interest rates, forclosure backups, housing starts--and toss 'em. Listen to the murmer and when it's conclusively one-sided, bet the other way. One of the reasons I'm cautious on the stock market still--plenty of people chirping about a buy opportunity. Once all those people have been kicked off that island--i.e. the overwhelming hue and cry is "the stock market isn't coming back any time soon because of ___________" then it's safe to get back in the water.

If I was going back to college, I'd study behavioral economics for sure. Fascinating how our minds work in money/market situations. Gotta understand how most of us are wired and how herd mentality is part of that equation.

Good luck with the sale Pete.

[Karl Molitoris]

Not that you can always do this, but when I moved in NJ (yuck!) I purposefully bought a house (even if it were the "runt of the litter") in the best / most affluent town I could afford at the time because I KNEW I would be retiring to a "less affluent" area (back in New England) and thus would be "scaling down"...and would "keep" the difference.

Karl

[Pete Violet]

Yes I bought high and by selling I will not make anything.

but by buying now with the int rates like they are I can get a lot more for my money and not see much difference in my monthly payments. The nice thing is we don't have to move - only if the price fits and we find something that makes sense for us.

Thanks for all your comments.

[Craig Cutler]

Good luck, finally homes are pricing where they should be. Buying a home to live in not for investment is a good approach.

Good points by Gary and Bill...Hopefully the US does not follow Japan, I think we can use the word never to describe Nikkei 38,000 in 1989. Unfortunately, we seem to be following their economic demise.