Foreclosure in West Covina>Question Details

May, Home Buyer in Brushy Slope, Round...

Is now the right time to buy? Are prices still going down in 6mos time?

Asked by May, Brushy Slope, Round Rock, TX Mon Dec 17, 2007

Help the community by answering this question:


Hi May,
No one can prefict exactly when we have hit the lowest point of the market, because by the time everybody realizes that it hit bottom, its already too late and on the rise! Now is a great time to buy, if you can get approved for a loan. Sellers need buyers, lots of inventory, and a very slow market give you, as a buyer, all the advantages in today's real estate market. Make use of it!

LA Real Estate Group
Lou Arakelian
Alex Golshan
1 vote Thank Flag Link Tue Oct 28, 2008
The right time to buy is simple to figure out.
Find the place you like.
Figure out the approximate rental value of that place.
Multiply that rental value by 100 and then by 120.
That is the range you should be paying for the place.
Let's say you want to buy a home in Los Angeles that you can rent for $2000. Then, using the formula, you figure that the price should be between $200,000 to $240,000. If it is anymore than that, then prices are still too high and will be going down.

Don't buy this BS about "Who knows when we will have a bottom?" That's garbage. The best indicator of housing values is rent. Only an imbecile would buy a house when those figures don't calculate correctly.

And unfortunately for housing prices, banks won't give imbeciles loans any longer.

Right, realtors? Please confirm.
0 votes Thank Flag Link Wed Jan 2, 2008
It really depends on your exit strategy. If you are buying a primary home for yourself and expect to be there for at least 5 years, then it is an excellent time to buy. Historically, home price trend up over a 5 year period. With great interest rates coupled with inflation, you can lock in a low payment that will only be better as time lapses. If you are looking to invest, then it is just a numbers game, if the property does what you need it to then the deal is good. So it is generally always a good time to buy for investors, you just have to choose the right deal. Of course, speculating, in my opinion, is always a bad idea. Stick to homes where you can control the results and account for potential market fluctuations. I do not think it is a good time to buy a home, live in it for a year and sell it. A short term exit strategy is probably not a good idea right now, unless you are rehabbing and you know what you are doing.
0 votes Thank Flag Link Mon Dec 17, 2007
December is usually a very slow month in Real Estate, inmy area it was pretty busy. There has been an increase of pending sales from the last few months. This indicates to me that buyers feel more comfortable with the market, they are taking advantage of bargain prices and lower interest rates. No one can predict where the market will be in 6 months time, but if you wait until everyone else is buying...we'll be back in a Seller's market and it will not be as good of a time to buy as right now is.
0 votes Thank Flag Link Mon Dec 17, 2007
Any time is the "right" time to buy...or the "wrong" time. It depends on the house, your needs, and the needs of the sellers. But, from your question, you undoubtedly are wondering, "How low are prices going? Should I wait and see if prices go lower?"

The answer to that is: Yes, generally prices probably will go lower. I don't have a crystal ball, but I do know that the market got way overheated in 2005 and 2006 and we're going through a correction. I do know that foreclosures are high and rising. And they'll continue for a while. And I strongly suspect that Bush's plan to slow down the foreclosures won't work. (Let's see, you have to have mediocre credit, but not real good credit. You have to be struggling, but can't have missed more than one payment. And lots of other terms and conditions. Even then, it's voluntary for the lenders.) Plus, a lot of people are just scared of buying right now. So, a reasonable person might come to the conclusion that prices will decline for a while longer.

Having said that, if you find a place you really like, you can get it for a good price, and you plan on staying there 5 years or more (to give the real estate market a chance to recover), then now is a great time to buy. Interest rates are low, housing inventory is good, it's a buyer's market. Find something you like, negotiate a good price, buy it, and enjoy it for the next 5-10 (or more) years. You do that, and it'll work out just fine.

Good luck.
0 votes Thank Flag Link Mon Dec 17, 2007
Don Tepper, Real Estate Pro in Burke, VA

Do you know how we'll know the prices have bottomed out? It's when investors start buying and prices start going up. Noone can predict when this will happen!

Now is a great time to buy. Prices are soft, invertory is high allowing better choices for buyers, and most importantly interest rates are low!

Good luck,

Karen Miller
0 votes Thank Flag Link Mon Dec 17, 2007

No one has the crystal ball answer to whether or not prices will decline over the next 6 months, nor what interest rates will be in 6 months.

Interest rates are exceptionally low now, and there are many exceptionally good values on the market now.

If you find the home you like "the one that gives you the warm fuzzies", you may want to strongly consider buying it. You will probably be very happy in the long run

Best of luck
0 votes Thank Flag Link Mon Dec 17, 2007
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer