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Jo Ann Madda…, Real Estate Pro in WARREN, NJ

Why would someone NOT purchase a home in this market?

Asked by Jo Ann Maddalena, WARREN, NJ Fri Aug 22, 2008

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Let's see if I can get a thumbs up on this one:

Someone would NOT buy in this market because they are ignorant, and they don't understand that this is the BEST time to buy, even if a mortgage costs 75% of their take home pay. Housing ALWAYS goes fact it's still going up right now. The government and the media are lying to the consumer because it's fun for them to watch the economy slip into peril, even though it's all a lie.
3 votes Thank Flag Link Fri Aug 22, 2008
The better question is "Why in the world was ANYONE (in their right mid) buyin from 2004 thru mid 2007?
3 votes Thank Flag Link Fri Aug 22, 2008
Because in general this market will continue decline for another 2-3 years, and it's better to hold off and wait until prices realign with actual income levels instead of buying a home that is priced according to old mortgage standards of the early 2000's.
3 votes Thank Flag Link Fri Aug 22, 2008
Prices are dropping like rocks and banks are failing all over the country.
Rent is cheaper.
Can't find an agent that you can trust.
Homes are selling that are destroyed. (They still comp.)
Did I mention prices are falling from the sky?
People want to wait to see if the rest of the neighborhood gets built, or just sits half finished.
Did I mention cheap rent.
Don't want to move into the forclosure on the block with 4 others that are destined to be rent houses.
Intrest rates are bound to go up and drive prices down.
Intrest rates will go up and increase forclosures.
Did I mention prices are Still Falling?

Maybe I should buy so my value can go back up to boom prices and I can HELOC and finally get that hummer for free....
1 vote Thank Flag Link Sat Aug 23, 2008
It is easier to say why would someone want to buy, Prices are extremely low, there are some very good buys right now, interest rates are still low and buying now allows you to get this low rate before rates start to inch up after the election. The key is If you sell your home now you may not make as much money from the sale but when you buy a new home you wont being paying as much either and still getting a great interest rate on a 30 year fixed note. If you find a house you fall in love with, can sell yours at a fair price and are preapprove dby all means go for it. There are certain parts of the country and segments that are going down, for instance i think i would stay away from buy a condo on miami beach unless you are stealing it. Make sure you know what the market is doing in the area you are buying, some are now stable, others falling slightly, some even rising and others still heading down hill. Good luck
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1 vote Thank Flag Link Sat Aug 23, 2008
I read recently that banks, strapped with required reserves for insured loans, don't HAVE the money to lend right now with any kind of volume/leniency. Further, it was indicated that there is a new breed of foreclosure involving homeowners who, having noticed the shortfall in their equity, are choosing to walk- it's becoming too accepted an outcome for some without financial hardship (just a bit of short-sightedness). They can buy again in five years when the market is more clear.
This glut has forced banks to assess the cost of the short sale process. Loss mitigation in unexpected volume is creating a real problem- and they're likely assessing if foreclosure isn't less costly for them.
So, it would seem that the time to NOT purchase a home is when it isn't an urgent need, and the decision comes at a time where foreclosure or short sale pricing doesn't match the income of someone looking to buy- better to wait until there's an indicator that signals the bottom.
Investors notwithstanding. There are avenues for investors that begin before things hit the mainstream.
Investor activity is a good thing, and worth keeping on top of. Just an opinion.
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1 vote Thank Flag Link Fri Aug 22, 2008
Because they already have one they love and don't want to move.

Because their credit score is 380, their income is $16,000/year, they owe back taxes, have defaulted on their child support, and no one will give them a mortgage.
1 vote Thank Flag Link Fri Aug 22, 2008
Thought I would bump this as it is now nearly a year later. Any new insights or retrations?
0 votes Thank Flag Link Fri Jul 24, 2009
Credit is tight right now and it is much more difficult for buyers to get financing than in previous years. Although some predict that home prices may continue to fall, I think this is a good time to buy.
0 votes Thank Flag Link Fri Aug 22, 2008
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