Housing market is down? LOL, yeah right.

[El Jefe]

All the realtors in our area keep saying its a buyers market right now, no freakin way. Looking at some houses/land in a couple different areas, bear in mind that these areas aren't the best areas. They are selling 2 acre plots for $75k, not bad huh, deed restriction madates the house must be 2500 square feet w/o the basement. The average cost of the houses going up by my grandpas house is 450k-500k. Who in the midwest can afford a 500k dollar house? Let alone a development of them.

So, if you go out into the country a little bit, acres are selling for 18-21k right now (undeveloped land), sweet sassy mollassy! Hows the market in your area?

[BigRedChief]

Originally Posted by KChiefs1

I have a friend who is a mortgage broker who told me today that mortgage rates will be the highest in years tomorrow after today's financial news. He said mortgage bonds took a hit today.

Yep, if you are going to buy, don't wait. Money is only going to cost more the longer you wait.

[lewdog]

Originally Posted by BigRedChief

Yep, if you are going to buy, don't wait. Money is only going to cost more the longer you wait.

Well that is if you are financially ready, as many people think that just because interest rates rise or prices go up, they must buy now. This only leads to the same financial trouble that so many people got into when all the shit hit the fan. You still have to have your finances in order and the best way to save in the long run on a house is to lessen your compounding interest payments by putting a big chunk down when purchasing....which most first time home buyers neglect to realize.

We are looking to save for our first house. And yes, while prices go up and interest rates rise, I continue to be realistic that we won't be ready until about a year from now when we have saved an appropriate 20% down and still have money in the bank for an emergency fund. One should never look at a home buying as a must have until you are financially ready. Renting our houses for the past few years has been great because budget wise we pay the same rate to live there while having no unforeseen maintenance costs to worry about, thus allowing us to budget and save very well over a few years.

We also carry 0 debt, which was a goal to reach before buying a house.

I had friends who bought right away a few years ago and into a house they realistically shouldn't have because it was such a "steal." We both have almost identical incomes. They are living paycheck to paycheck paying the mortgage and unforeseen work that has come up on that house and have liquidated all their savings. They are living stressed to the max and have been fighting constantly. While we have saved thousands of dollars into savings and both began investing for retirement.

If a rise of 1-2% in interest rates make in impossible for you to buy a house, you probably aren't financially ready to buy one in the first place.