Home Buying in Tamarac>Question Details

Akindale, Home Buyer in Tamarac, FL

I understand that the price of homes will drop in a few months is that true, and if so is now a good time to buy

Asked by Akindale, Tamarac, FL Sat Jun 4, 2011

Help the community by answering this question:


Home prices are scheduled to drop 3.4% on August 1. So plan accordingly.

Just kidding.

No one knows what home prices will do. In some areas of the country, it's likely they'll continue to decline. In other areas of the country, they'll remain stable, or even rise. Anyone who told you that "the price of homes will drop in a few months" is an idiot. A certifiable idiot who is just guessing or BSing.

Is now a good time to buy? The question is: Is it a good time to buy for you and your needs?

If you need a place to live, if you have decent credit, if you have a downpayment, and if you plan on living in that property for 6-8 years, then now is probably a pretty good time to buy.

But if you have lousy credit, or if you don't have any extra cash, or if you think you'll only live there for 2-3 years, or if your job is insecure, then now is probably a bad time to buy.

External factors are mixed. Interest rates are great, and there's a lot more upside risk than downside potential. In other words, there's a lot more chance rates will go up by 2% (or 3% or 4% or 5%) in the next couple of years than that they'll go down 2% or so. On the other hand, there probably are areas of the country where values will decline another 10%, 20%, or more. Yet there are others that are already recovering. And even if values do decline where you are by another 10%, if you're in the house for 8 years or so, odds are very good that during that period of time values will climb well above your purchase price.

So, while there are some external factors to consider, the more important factors are your own finances and your own needs.

Hope that helps.
1 vote Thank Flag Link Sat Jun 4, 2011
Don Tepper, Real Estate Pro in Burke, VA
The media generalizes what's going on with real estate. My feeling is that you need to observe the market on a local basis. There are several areas in South Florida where we've seen the bottom and in other places there's still some room for prices to fall. However, with all this said, speculating if the market will drop perhaps another 3-4% you may lose the opportunity to buy the perfect home and keep in mind that interest rates will start to go up.

Check out this article published in the WSJ:

For home values in Tamarac or any other area visit http://www.TamaracHomeValues.com

Whenever you feel ready to buy a home give me a call.
All the best!

Claudio Petasne, Realtor | License # 3231768 | The Keyes Co. Realty
10091 NW 1st Ct | Fort Lauderdale, FL 33324
Direct: 954-260-5570 | E-Fax: 954-845-3405
Visit: http://www.HomeSalesSpecialist.com | ClaudioPetasne@gmail.com
0 votes Thank Flag Link Sun Jun 5, 2011
If you believe that prices will drop a significant amount in the next couple of months, then you may want to wait to buy. In this market, nobody really knows. If you are buying a home to live in for the next 10 to 15 years, then an small decline you might see in the next couple of months would not be significant.

You also need to consider the fact that home prices could go up in the next couple of months. If they did, would you still be able to afford the home that you want? If you can afford it today, you might want to buy it now instead of risking prices going higher. Even if they do go slightly lower, you will still be in the house that you wanted.
0 votes Thank Flag Link Sat Jun 4, 2011
even if the prices drop further, and they may not, if you are getting a mortgage and the rates go up like we expect them to, you will end up paying more because of the interest. So, if you see a home you love, buyit now.
0 votes Thank Flag Link Sat Jun 4, 2011
Real Estate is local. I think people will be looking back at this time in history will realize they missed the best time to buy.
Good Luck and I hope you find a great deal!
Genevieve Ramachandran
0 votes Thank Flag Link Sat Jun 4, 2011

Not sure who told you that home prices will drop in a few months and how they were able to determine that. I can tell you that in Palm Beach and Martin Counties the real estate market has shown unbelievable strength through the spring buying season. Inventories are at year long lows, sales are at year long highs and our biggest challenge as Realtors® is to find quality homes to show our clients who are still very price conscious.

Some market segments have bottomed and prices are up as much as 10% in some investor grade properties, other market segments still are inventory challenged and there is probably more downside ahead. Be careful of the press and what the so called experts have to say. Generally lumping all real estate into the same class is irresponsible at best.

I can tell you what I tell each one of my clients; if you are borrowing money your true urgency is interest rates that were down again last week for the 7th time in 8 weeks. We are closing in on the all time lows and this is only because the Fed has artificially kept them by purchasing our own government treasury bonds. This will not last; rates will go up. It is not if that is the question; it is when and by how much?

Buy, buy now, buy fast and get your rate locked in. Do everything you can to buy a home that you will be happy living in for 15 years or more. Sit back, watch rates rise while you are fixed at 4.25% and enjoy the ride. When I bought my first home in 1981 rates were 18%!

I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.

Always at Your Service,

Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
Web Reference: http://www.tompriester.com
0 votes Thank Flag Link Sat Jun 4, 2011
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