bostonbubble.com

Still Looking · Guest

I've been looking for about 6 years now, so no snide comments please!! I get enough of that from my family, who think I'm just poor, instead of stubborn.
I'm noticing that houses that are coming up are priced like 2006 all over again (Reading,Stoneham,Wakefield). Perhaps the NAR spin is working along with the tax credit. The general sense I get from the short time that offers are being made on these houses is that there is a prevailing sense of desperation again, all frothy and bubbly, like you might be missing out your LAST chance (again) of buying a house: "There hasn't been a better time to buy!"
I went to some open houses this past weekend, and was disappointed. It had seemed that prices were becoming somewhat manageable (not reasonable, still) again in the fall, and I was hopeful of buying this year (and shutting those relatives up finally), but it was all dashed upon my first step past the front door...

Is it just me? Would like to hear anecdotal stories of recent experiences.

Kaidran · Joined: 17 Mar 2010 Posts: 289

I have not been to an open house since Feb. I was looking in Arlington, the house was crappy but the OH was full of people and it was under offer in a couple of days.

The problem was the inventory, it was so low that anything was in demand. I've noticed a lot more coming on over the last few weeks but I'm not sure how it compares historically. Redfin usually post the numbers every month or so.

I did hear an NPR story about how sellers were very worried about not selling before the 30th because they were expecting a world of pain afterward.

I'm just waiting for the interest rates to go up and for the foreclosures to work through before I am serious again. Since you have held out for 6 years I would just wait a little longer because it seems to finally be getting interesting.

CC · Guest

From what I have seen in some affordable towns, only properties priced around 2002-2003's were selling (berfore 30th). $325k-375k are doing well, but not 400k or 425k above. The later ones just sit forever unless priced correctly.

I also went to few OP, the story is pretty much the same. Not many people can afford more than starter home. People who can afford more than $400K house had already bought something already. The tax credits are only meaningful to those who don't have much down payment.

Personally I think houses are still over-priced, but it's not as bad as 2004-2006. You can easily buy a bank own property at a reasonable price or a reasonable house around 400k-425k. The government and Fed creates this artificial demand and inflate the price, but I think things will be bad after 30th or this summer. There is no enough demand, not to mention the higher rate and more foreclosed properties are on the way. Price will come down or stay flat. So don't worry.

BTW, though I think the decline is not over and buyers may save more if they wait a bit longer, but seriously if you have been waiting for 6 years and already saved enough money, you may consider just play the game. Life is to short.... unless you are still very young.

JAP · Guest

GenXer · Joined: 20 Feb 2009 Posts: 703

Kaidran · Joined: 17 Mar 2010 Posts: 289

A little off topic but I was playing with my daughter yesterday and having a lot of fun, then I suddenly had the thought that if I was not renting I would not be doing it. I would be mowing the lawn or doing one of the 1000 things you have to do when you own a house.

I still get pangs for owning but it seems awesome to be saving money and having more free time.

Boston ITer · Joined: 11 Jan 2010 Posts: 269

john p · Joined: 10 Mar 2006 Posts: 1820

Kadrian said:

Kaidran · Joined: 17 Mar 2010 Posts: 289

Thanks John, stripped threads are no fun for anyone so you have my sympathy.

I tend not to worry too much about traffic because I leave very early in the morning so distance and traffis lights are bigger factors. I have been watching out for rail links. My company is moving to a new location around Boston soon but has not announced where. That was the final thing to stop me looking as it could make such a big difference. If it works I have to say Walpole is probably my favorite for what you can get with a decent rail commute but that it based on Internet statistics rather than actual knowledge. I really like Melrose and Dedham too. My wife likes Arlington because she thinks the commute would be easier but I'm not convinced that is true. Stoneham was a contender but then we heard that they had to cancel all after school programs after a budget crisis.

Still Looking · Guest

Thanks for support and advice. I'm looking to put down roots for my child's sake, and don't want to move around during childhood. I did it, and I hated it.

Thanks also for that bit of info. about Stoneham. Times are tough all over though. The population density of Melrose is a detractor for me, but who knows, if the right place comes along. I'm a sucker for Bungalows/Craftsman houses!

GenXer · Joined: 20 Feb 2009 Posts: 703

Kaidran · Joined: 17 Mar 2010 Posts: 289

Plus, roots are not necessarily a good thing in the current climate. I'm guessing you want stability for your kids but the best way to achieve it is to keep you life as uncluttered as possible. I understand the desire to own, I really do, but unless you can buy outright you are still beholden to someone, just not someone that pays your property taxes or upkeeps your house.

Guest · Posted: Tue Apr 27, 2010 1:55 pm GMT Post subject:

I used to have a burning desire to own. In retrospect, the reason was, because everyone else did, when they got married, or started the family, my friends, my relatives, everybody but us. I would begrudge my DH, he reasoned with me and did not budge (fortunatelly).
I find it very liberating right now, although my son is going to start the kindergarten this year, the desire to own is gone.
We rent a nice single family house, 10min from the T (this way we just need one car), 5 minutes from hiking trails in Fells, on a quiet, residential street, 15min from Cambridge where I work, and our rent is 1700/month. We managed to save quite a bit of $$$$ in the meantime, maintenance and up-keep is up to the landlord. Granted our kitchen does not have granit and stainless, but this is a very small price to pay. We very much feel at home, minus mortgage, taxes, maintenance, repairs.
We can wait for another few years (landlords want to continue renting for a long time, they own it outright) and perphaps buiyng a house with cash when the time is right, or continue renting.
We created a social base for our child and this will be there no matter which school he will go to. I second GenXer, kids don't care where they live, this is US adults who project it onto them.

JAP · Guest

I guess everyone has their reasonings for everything. Just as GenEx and Guest say thay have no desire to own right now my perspective is quite the opposite. I think there is truely an advantage to having your kids in one place their whole childhood (0-18 years of age) if possible. The friends, stability, school, social networks established in school, memories, and traditons. a handful of my friends purchased home from their parents in which they grew up in.

In addition, I like going out mowing my own lawn, edging the sidewalk, trimming the trees and love the way it looks and smells afterward. Knowing that everything is mine gives me a sense of pride and a good feeling. Cookng out and eating dinner on the backdeck w/ my family in my own home also gives me a sense of pride. for me, it's not all about dollars and cents anymore but I used to be that way.

Over the last few years I've had realtively younger friends and co-workers (30-50) either die or come down with some serious life altering illnesses out of the blue. Since that point I've changed my approach to focusing on what makes me and my family feel good adhappy and do many ore things that we enjoy. I certaintly do not make half cocked decisions and strictly focus only on living life recklessly and freely spending by eny means. Could I have waited to purchase a home for another 1-3 years and got a better deal, maybe. Could I have waited for a "better" home to come along sure. But as most poeple on this whole site focs on is almost always dollar and cents and nothing more. Which I guess is the point of the site but sometme I think people forget about what's really importat in life. Me included a times.

If you want to buy a house because it makes you or your family happy, you can afford it, you've shopped and shopped ad shopped for a good deal and are still waiting for the right time to buy and you've found one that's a decent/good investment or deal...buy it. You never know what tomorrow brings...

Kaidran · Joined: 17 Mar 2010 Posts: 289

If you want to buy a house and can afford it by all means do but your view of it being more secure is false unless you can afford to buy it outright. If you lose your job and cannot pay the bank will (eventually) take it back, just as a landlord will evict you.

Until you have the final deposit to the bank the idea that you own anything is just a myth. I know it is nice myth and I have been wrapped up in it too but you just have a different type of landlord.

I'm not sure what line of work you are in but there is fairly unlikely that I will be in the same place in 10 years time so the idea of being one spot for your kids entire childhood does not fit well with current work prospects. If you work for Mass/town govt in a vital function then possibly you could have more security but I think that is a fairly rare thing these days.