As they say, a home is only worth what someone is willing to pay for it... seems like everyone in that area is sharing the same sentiments as you... no one is willing to pay the piper.
If it took 15 years for one of the most honor-bound and efficient cultures on Earth to dig themselves out of what Brian described as a similar mess then, how long is it likely to take the world's most arrogant and wasteful?
Just a thought from your friend and neighbor and fellow TypikalAmerican.
Japan was in a similar situation to what the US is in now back in the 1990's (bad banks with toxic assests, politicans not understanding basic economics, a bubble economy & more) . Japan had 15 years of decreasing property values. Don't be surprised if the US has at least 10 years of the same.
Now of course houses can't drop 100K every year and still be worth something in ten, but houses can drop 100K-200K over a year or two and then keep dropping 5% a year in a deflationary cycle (like the Great Depression, a cycle where dollars become worth more but are harder to get). Research deflationary cycles, stagflation and fiat currencies and you might just want to withdraw your bid on that house.
Wait a year or two more if you can.
for every $1 you give to the bank in interest (ie not principal)
for every $1 above the standard deduction (which is $16,000 for married couple) you give to the bank
you get tax savings of 33 to 38 cents (depends on your tax bracket)
if that sounds good
you can just give a dollar to me
and i will give you 38 cents
the banks like it
and so do realtors
not sure why
Please let me know if fI can help you in any way.
All my best,
If you are looking to buy a home relate it to the time horizon and to other benifits that would accrue due to home ownership. I guess most decisions will be based on late indicators, now you could be your own judge. Do brainstorm and consult with your own Realtor too.
Anyone who is looking to make quick money in the real estate market should not try right now. This is a time for home buyers to get a great deal for their homes to be in long term.
I wish I could tell you how low it will go or even if we have finally reached the bottom this week - but I can't.
Just make sure this investment is right for you at this time.
All my best,
Keller Williams Realty