Reader's comments
Thanks for the quick response! This has been a hellish time to be looking - we're not expecting kids but we figure why not buy a home and get the tax breaks before it becomes a desperate "we're having a baby and need a house" thing.
We've already noticed that in some of the higher priced areas, there is less bidding above asking and that homes are staying on the market a bit longer. At some point, people seemed to start saying "do I really want to buy a house for 750Gs that needs everything redone and that will see me owing 5-6Gs a month in payments?" With the property taxes around here, mortgage payments aren't even the worst of it!
I think we will keep abreast of developments, keep looking and if something great comes along, pounce. But otherwise, I'd love to ride it out a bit and see the bubble burst, so to speak. I hope you're right Grunt!
People are starting to become more aware of the risks they are taking and stepping back to see if they can really afford to take such huge risks. I have noticed that the high priced inventory is not moving as fast as used to in Manhattan. From what you have described the burbs are no different.
Actually I hope I am wrong. If I am right the s**t won't the fan. It will be the whole damn cesspool.
We're also looking to buy, but I refuse to pay over half a million dollars for a ramshackle bungalow.
Not only does the bubble have to pop, think about the fact that a lot of the people who are buying homes are doing so foolishly. They get interest-only, adjustable, no money down deals, but after a few years, their payments will go up, and they won't be able to afford it. After all, housing prices have gone up from 35-150%, but payroll has stayed almost level.
I'm waiting for the plague of foreclosures that's bound to come. People (or banks) are going to be selling cheap.
You have the right idea amigo. The ideal situation is to snatch some stressed properties from a bank that is jonesing for a cash infusion. However snagging a foreclosure is not as easy as it sounds and requires just as much work and even more than buying a home. I will touch upon that on a later date. There are some that argue that the mortgage industry is prolonging the bubble with their funky loans. Regardless, the end result is that alot of people are going to be very unhappy.
C, where are you looking? I think "ramshackle bungalow" is too NICE a comment about some of stuff we've been seeing - ha! At least in Westchestere, the prices are anywhere between 550 and 750 for a 1400 square foot dump, some of the work that needs to be done seems to reach into the 6 figure range - it's so ridiculous.
I am also expecting some foreclosures, or at least a drop in asking prices (which has already been happening in some instances, where the aforementioned dump sits for months without offers and the seller is forced to drop the price). I will not take out anything but a 30 year - I am buying a home, not making an investment, and I want equity and stability!
I am keeping my fingers crossed that we're doing the right thing by waiting - I would hate to rent forever!
I am unsure about your financial situation so I can't really comment whether the 30 year is a good idea or not however I will say that you have the proper strategy in mind for Westchester.
June sales rising, but prices falling -- what's up with that grunt?
I am assuming you read the NYT . I don't know what is up. All I know is that we are definitely due for a correction.
Good people, I know we are all whipped in a lather over this market. I am just as concerned as you all are. I work in this industry and I still rent. The best piece of advice I can give is this, keep a cool head, do not get emotional and make the effort to check your finances and budget yourselves so you do not end up kneecapping yourselves. I know. Its really f**ked up out there. But the worst thing you can do is panic.
We've already noticed that in some of the higher priced areas, there is less bidding above asking and that homes are staying on the market a bit longer. At some point, people seemed to start saying "do I really want to buy a house for 750Gs that needs everything redone and that will see me owing 5-6Gs a month in payments?" With the property taxes around here, mortgage payments aren't even the worst of it!
I think we will keep abreast of developments, keep looking and if something great comes along, pounce. But otherwise, I'd love to ride it out a bit and see the bubble burst, so to speak. I hope you're right Grunt!
People are starting to become more aware of the risks they are taking and stepping back to see if they can really afford to take such huge risks. I have noticed that the high priced inventory is not moving as fast as used to in Manhattan. From what you have described the burbs are no different.
Actually I hope I am wrong. If I am right the s**t won't the fan. It will be the whole damn cesspool.
We're also looking to buy, but I refuse to pay over half a million dollars for a ramshackle bungalow.
Not only does the bubble have to pop, think about the fact that a lot of the people who are buying homes are doing so foolishly. They get interest-only, adjustable, no money down deals, but after a few years, their payments will go up, and they won't be able to afford it. After all, housing prices have gone up from 35-150%, but payroll has stayed almost level.
I'm waiting for the plague of foreclosures that's bound to come. People (or banks) are going to be selling cheap.
You have the right idea amigo. The ideal situation is to snatch some stressed properties from a bank that is jonesing for a cash infusion. However snagging a foreclosure is not as easy as it sounds and requires just as much work and even more than buying a home. I will touch upon that on a later date. There are some that argue that the mortgage industry is prolonging the bubble with their funky loans. Regardless, the end result is that alot of people are going to be very unhappy.
C, where are you looking? I think "ramshackle bungalow" is too NICE a comment about some of stuff we've been seeing - ha! At least in Westchestere, the prices are anywhere between 550 and 750 for a 1400 square foot dump, some of the work that needs to be done seems to reach into the 6 figure range - it's so ridiculous.
I am also expecting some foreclosures, or at least a drop in asking prices (which has already been happening in some instances, where the aforementioned dump sits for months without offers and the seller is forced to drop the price). I will not take out anything but a 30 year - I am buying a home, not making an investment, and I want equity and stability!
I am keeping my fingers crossed that we're doing the right thing by waiting - I would hate to rent forever!
I am unsure about your financial situation so I can't really comment whether the 30 year is a good idea or not however I will say that you have the proper strategy in mind for Westchester.
June sales rising, but prices falling -- what's up with that grunt?
I am assuming you read the NYT . I don't know what is up. All I know is that we are definitely due for a correction.
Good people, I know we are all whipped in a lather over this market. I am just as concerned as you all are. I work in this industry and I still rent. The best piece of advice I can give is this, keep a cool head, do not get emotional and make the effort to check your finances and budget yourselves so you do not end up kneecapping yourselves. I know. Its really f**ked up out there. But the worst thing you can do is panic.
posted by Grunt at
1:02 AM
