If you spend any time listening to the news, it’s no surprise that we’re still in the midst of a real estate slump. Certainly, some areas have fared worse than others, but as a whole, most real estate values have dropped over the past few years. While this is bad news for those who are trying to sell a house in this market, it also presents an opportunity for those looking to buy.
People who are considering a new home purchase right now have a wide selection of homes to choose from on the market, and in most cases, very attractive prices. Those who have their home on the market and are trying to sell are faced with just the opposite problem. They are competing with a flooded market and lower prices, so it’s increasingly difficult to unload the property for what it was worth just a year or two ago.
So, I’m just curious to see what others are doing right now. Have you been trying to sell? Or are you looking to buy something? If you’re a renter and have considered buying a first home, is this market luring you in? We have actually been looking a bit at new homes and could use an upgrade, but the idea of trying to sell our existing home right now isn’t very attractive. At this point we’d be lucky to break even. At the same time, we’ve thought about possibly buying a new home without putting the existing one up for sale yet. This would allow some time to make some minor improvements and wait a little longer for the market around here to recover. Obviously, the downside to that would be having two mortgage payments for a while.
But I’m just interested in seeing what others are doing out there and whether this real estate market is luring in new buyers or simply giving sellers a lot of grief.
Author: Jeremy Vohwinkle
My name is Jeremy Vohwinkle, and I’ve spent a number of years working in the finance industry providing financial advice to regular investors and those participating in employer-sponsored retirement plans.
Banks aren’t lending money that easily, causing further deflationary pressures on the market. but I think in the future it will recovery. so i want to wait some days to sale my house.
It really depends on the local market, but overall I don't think the housing market is near the bottom yet. There are still another 1 or 2 years of 5 year arm adjustments coming due. There is still a large excess of inventory due to overbuilding. Banks aren't lending money that easily, causing further deflationary pressures on the market.
A good general rule of thumb is to look at the rent parity in your local area. When an investor, can come in, buy a house, and rent it out for break even or profit, that is when you will see the demand pick back up and you will be close to a bottom.
We are trying to sell our small house, and the agent told us a while ago that there are houses around ours cheaper and bigger. If we lower our price we would be literally paying someone to take the house away from us, so I guess we cannot sell it now.
I'm not looking to buy or sell - but I have a couple of friends - one just bought a house and the other is trying to sell his house because it's near underwater. 2 different ends of the spectrum.
I've been trying to sell since April. I have a 2/2.5/1 townhouse that I thought would sell rather quickly. It turns out the money's very tight for lending for this type of property and everyone wants a view.
I decided to sell because despite the slump in the market, prices on homes are finally within reach. Since the townhouse has almost doubled in price since I bought it (about ten years ago), I have quite a bit of equity built up with an already small mortgage (<$100K). If I can sell it even at a "priced to sell" price, I'll still have a hefty downpayment for a new house.
My contract is out in October, so until then I'll hope for a buyer.
We own a typical two bedroom home. It is perfect for the 8000 first time home buyer credit. We have about 60% equity and are looking to leap towards the home of our dreams. We'll see if it happens.