Home prices are near their post-bust lows. The government reported that January saw a double-digit dip new home sales Robert Shiller, co-founder of the S&P/Case-Shiller home price indexes, said “There's a substantial risk of home prices falling another 15%, 20% or 25%.” Home sales dipped in January, home-prices are near post-bust lows and could go down another 25% and the solution the article's author comes up with is... Wait. Just wait. Hmmm. “That's a stunning enough pronouncement to make house hunters consider putting purchases on hold.. If prices are near a double-dip...there may be better deals ahead," the article says There's always a better deal. Always. Because “better deal” is subjective. Do you want “more house for your money?” Or do you want a “better value.” A better value is different for everyone. Maybe you can afford that big house now that it's a short sale or foreclosure. Can you afford the upkeep? Landscaping? Repairs? Do you have time in your busy schedule to keep it clean and looking nice? If not, can you afford a cleaning service? Many of these “great deals” have been sitting so long that they need major cleaning (read: mold and mildew) and repairs. A true “better value” is a house that fits not only your finances but your lifestyle. The national news only reports national trends, which are an average of individual state trends...which are themselves an average of individual county trends...which then are themselves an average of individual city/town trends. Don't let the national news have such a profound impact on your decisions as the "national average" may not apply to your particular area. Articles like this basically teach you to never be satisfied with a home/deal that is presented to you...because there's always something better that you haven't been told about. My solution is quite different than the aforementioned article's author... Know both what you need and what you want before you start looking. Period. This eliminates the doubt that leads you to wait for a better deal around the corner. Just like the real estate bubble burst, the downward trend eventually has to end. When? No one knows. And there are all too many people willing to use that fear of the unknown to influence your decision. Perhaps the most lame solution is waiting. Sure, sometimes it works in your favor with careful planning in some situations, but we're talking about the housing market, which Internet Marketer Marq “MarQeteer” Boyd describes as “A market where sheer greed drove home values up astronomically, creating a false economy. A market where those high and higher home values created higher (and unrealistic) expectations. A market where we feel bad about where we are, simply because those unrealistic expectations were not met and many people lost their shirts (and pants) in the process.” Where are we now with home values? Pretty much back where we were 10 years ago. We just feel sick about it after all we've been led to believe. Do you really want to wait to see what happens and put that part of your future at the mercy of such a volatile entity? Waiting creates anxiety and leaves you at the mercy of the market. Knowledge is power. Know what you need and want...then find a good real estate professional you trust:) For more help and hints, just call me...your Beach Areas Specialist at 562-244-8021, visit my webpage www.annstefanucci.com or visit me on Facebook.
I saw an article a couple of days ago on CNNMoney.com that really made me bristle. It concerned the reports and predictions of an industry bubble-spotter and said, among other things:
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about 12 years ago
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