I'd rather have higher interest rates paying for a lower priced house. When interest rates come back down, I can refi. But when I overpay for a house, thats pretty much permenant.
Many of the more desirable areas of Brooklyn are still bubbly. But prices are coming down. I am patiently waiting.
So basically, the world is betting on a 20% decline in NY area housing in the next 5 years.
1. It's Already Begun....Write Back To Me In 8 Months
Mortgage Rate Watch
Region: US Show Rates
This Week Last Week Last Month
30 Year Fixed
6.03% 5.88% 5.85%
15 Year Fixed
5.62% 5.40% 5.34%
5.68% 5.48% 5.67%
1 Year ARM
5.29% 5.10% 5.24%
2. I got the sarcasm, but I didn't think it was funny. It is actually a great time to buy for 3 reasons.
1 - Prices have come down over 8% on average in the past year and a half.
2 - Mortgage rates are still historically low, but won't stay that way much longer
3 - Home values will eventually get back to what they were 2 years ago and exceed that value.
So yes, it is "great, great, buy, buy, buy"......today you can buy a home for less than it was 2 years ago, still get the same mortgage rate from 2 years ago and wait 2 more years to see the value start to go back up.
We May Be In The Worst Housing Market In US History, But It Will Not Last Forever.
Brooklyn and to a lesser extent Manhattan real estate is significantly overvalued. I cannot imagine any long-term demographic reasons for the near doubling of real estate prices in the span of 2-3 years (2003-2005). In my own experience there has been an undeniable rise in demand in that time mostly due to cheap loans, loose lending practices and constant real estate agent cheerleading. I believe we are now returning to stricter lending practices which will greatly lower the pool of available buyers.
I understand that it is in every agent's interests to promote and even create demand through psychological means including advertisements, and posts on this website. I have yet to see a single real estate agent to ever admit that there are good and bad times to buy property. For some reason no matter what's happening it's always great, great, buy, buy, buy.
Why trust their judgment now? Even if they are sincere, they are invested in maintaining a delusional optimism. Today's real-estate numbers show continued buildup of homes for sale. NY is not immune to this national trend.
I am in the market as a first-home buyer. My current strategy: build credit, build savings, and WAIT. I am not catching a falling knife on my first home purchase.
So basically any time is the best time to buy and/or sell, so long as I get the comission. If you see something you like you should definitely borrow more then you can afford and pay more then it's worth. After all, the higher the price, the higher the commision ! So raise the roof with the prices. Buy, buy buy!
You're putting my kids through college :)
The real estate market in Brooklyn is doing just fine. There has been some adjustments that have happened in many of our neighborhoods over the past few months due to the sub prime collapse and other economic market conditions. Rest assured, I see that some areas are maintaining their own. Since prices have adjusted and interest rates and programs are now more favorable we anticipate the pent up demand to cause the market to bloom, just in time as the flowers bloom.
Have a great Spring...I know you're the tops in Bensonhurst and Bay Ridge. Enjoy!!