Home Values May Fall 30% in 2010 and You Want to Buy When?
Homebuyer Strategy vs. The Balancing Act of a Lifetime – what’s yours?
Photo courtesy of Pink Sherbet’s photostream via Flickr
Is now a good time to buy a house?
Based on what you’ve heard here, in the news and from other sources – what’s your opinion?
Consider this:
Fannie Mae released the results of a thought-provoking survey this week. Washington Post article “Faith in homeownership drops, Fannie Mae poll shows” provides a comprehensive overview of the results.
“The survey is Fannie Mae’s first attempt to gauge how the foreclosure crisis has affected public attitudes about homeownership.” -The Washington Post
The hopeful news stories we hear peppered amongst all the doom and gloom probably serve to temper the general public’s mood. Optimistic marketing campaigns of various real estate organizations also help keep us encouraged about how soon this will be over. Now, putting it all together, what’s the first time home buyer’s best strategy at this point?
You may also find the following analysis of interest since it addresses some telling statistics. The real estate market is experiencing the most delicate balancing act of our lifetime.
“Home Price Drop of 30% Possible for 2010″ -by contributor John Lounsbury on seekingalpha.com
The first paragraph of the following article is extremely important. So even if you’re already sick of reading about statistics, at least catch the first paragraph. The waiting game these huge institutions are playing is an important part of the complete picture. My husband had a chance conversation with a J.P. Morgan employee the other day who works with their REO’s. He claims there are over 450,000 properties currently in limbo on their books alone – meaning the owners have stopped making payments (many still live in the properties) and no action has been taken by J.P. Morgan because of federal restrictions created to manage the tsunami of foreclosures. Essentially they’re being released on the public little by little. I’m not saying this is a bad thing – only that it’s important to have all the facts in front of you before deciding your best course of action as far as when to buy a home. Or when to sell for that matter…
The Option ARM Kingpins: Who Holds the Elusive Option ARMs? $189 Billion Securitized and Outstanding and big Three of Wells Fargo, JP Morgan, and Bank of America Playing with Time. -financemymoney.com
Lastly, there’s this msnbc story: “Americans say time is right to buy home: Poll”
So what do you think? Is now a good time to buy a house?
Will you share your thoughts and perceptions? I’d love to hear your opinion.
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Really interesting article! Honest..
Hi there could I reference some of the material here in this entry if I link back to you?
Absolutely! Thanks.
great post as usual!
I heard the same thing from a friend of mine. I’m not a home owner currently, but I’m looking to buy. If prices do drop 30%, it won’t hurt my feelings.
Even if property values do fall that much more in your area, they’ll recover quickly just as they have every time in the past. Have you considered offering 30%-50% less than asking price on a property that’s in foreclosure or pre-foreclosure?
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