bostonbubble.com

[Xenos]

[quote="whezmyhome"]I am not comfortable with the current home prices...... ([/quote]

I agree with punting and trying to find something acceptable in a couple years, but then I am much more comfortable with interest rate risk than I am with the tremendous amount of price risk that I think the market still carries.

As it turns out, we just left the country for at least a couple years to a place where prices are still way too high, the market has dried up, only high-end properties are moving, so realtors are celebrating that median home prices are still rising (le sigh).

This sort of folly seems inherent in the human condition.

[Kaidran]

Unfortunately that is where it is. We are trapped either renting or paying a high price for a house. We can only exert control over prices by refusing to buy at current rates.

I'll start looking again next year but renting looks much better, especially if I can find a SFH in a better town. The only other option is relocating to a new area.

[Guest]

Finding SFH as rental is tricky. Inventory, especially in towns with good schools is extremely low and rent is steep.
There are very few 3-bd apartments to rent, again in towns where schools are descent.

We currently rent SFH in West Malden, our son is starting kindergarten this fall, he is going to public school. We'll probably keep him there through the 1st maybe 2nd grade (we are not that uptight about schools especially in the lower grades) than need to decide either to buy or rent. However, we'd really need a 3bd place.

I have a principle dilemna. It just rubs me the wrong way to pay that much hard earned $$$ to purchase a place to live that I don't even like, that depreciates and it's hard to unload. I cannot commit to living in the house for 15-20years. I don't want to be tied down if our situation changes (jobs etc.) We are sitting on the sideline, can put 40-50% down but psychologically I just can't digest to buy at this point, even living in the horrible school district. Deep down I know my son will be just fine.

[john p]

I think the "Rude Awakening" will be whether or not this government interaction is going to wake up the economy or not.

Basically investors are watching the US Government priming the pump hoping that the economy kicks into gear.

Even individuals are saving (which is a good thing) the personal savings rate is going up because people are saving for an emergency fund, yet we need people to spend in order to get certain segments of the economy moving.

Home buyers are seeing first time homebuyer credits and historically low rates due to government purchases of Mortgage Bonds.

http://articles.sfgate.com/2010-02-15/news/17876742_1_mortgage-rates-keith-gumbinger-buying

The gamble right now is if whether or not it is wise to get a house in a depressed market with a low mortgage rate or to wait and see if it continues further down.

The turbulent reactions in the past few years give people a sense that it will be "Rude", but who knows, maybe things moderate.

I think the jump in the Equities Market in the past few weeks was due to the passage of the Financial Regulations. It was a big wildcard that was hanging out there and now people have a sense as to what they'd be dealing with.

I really think that a global economic summit with some basic rules and standards would really help take the "Rudeness" out of the system. Also, some trade rules and regulations like ironing out copyright infringement, this whole deal with things like Google in China or BlackBerry in Saudi Arabia etc.

When mergers and aquisitions of large companies happen, changes are often abrupt and "rude". The same goes for globalization, we're having growing pains with these sorts of things and our technology has made capital, manufacturing, etc. fungible on a global level so the basic rapidity of potential change is unsettling. Individuals are saying, "My company might move next year so I'm not going to settle down until that wild card is played out".

[CL]

To Guest: If you truly know your son will be fine in Malden school district, you already rent a place you can live with, and you cannot find anything you like in the current market condition within your price range, then you don't really have a dilemma right?

I happen to agree you should not buy a house that you don't like, or will be hard to unload, or will be forced to move in short term. The flip side is since the house is likable, easy to load (ie good demand) and flexible enough to accommodate long term needs, it will be relatively expensive. It's just the price of the characteristics you are seeking. Whether you think the price is right is another issue. My personal opinion is (while I am not sure) it is unlikely the housing market will go down 20, 30%, especially in the good school towns you are looking at.

I think if you have 40-50% saved, you may want to look at some really defensive neigbhorhood (areas like Brookline, part of Winchester, etc) and look for bargain in Aug/Sep/Oct. There probably will have some motivated sellers that overpriced their houses, got left behind in the spring and summer season and willing to (sort of) give their house away now. Look for sharp AND sudden price drop after long listing days. I got mine this way. Housing there should be easier to unload if your situation changes due to structural demand.