Is it a Buyer's Market right now?

Question

What do you think? I live in Boston and housing prices are still $$ right now. I would be worried about buying in a shaky economy. Thoughts?

Answer 1

DUH

Yes it is definitely a Buyer's Market now.  Some areas are stabilizing price-wise, others are still falling.  Real estate is very Local.

As to the shaky economy, yes you need to be cautious, but not catatonic.  How secure is your job?  DON'T overextend yourself with any home purchase.  You should be able to easily afford it, not be a stretch.  If there are two wage earners, can you keep payments current if one of you loses their job?

Answer 2

It's a buyers market, but lenders are weary of giving out loans, so you typically need better credit than you would have 2 years ago and a rather large down payment.  You also need to research the area you are going to, and may have to live there for a few years, because prices could drop even more.

Answer 3

Heck yes. You need to look into bank-owned properties. These are the homes people lost in foreclosure because they had ARMs and couldn't keep up with their mortgage payments when the rate increased.  I found a home for 15K in my suburb.  The homeowner probably owed just 15K more and just couldn't keep up.

Good luck. We're looking for a house right now.

Answer 4

It is a buyers market due to the number of homes on the market, however, some area's are still going to be pricer than  others given their location.  Boston is one of them.

Answer 5

For the most part it is.  What makes prices drop is more available units than buyers, decreased demand, poorly maintained properties, etc. If don’t know where Boston stacks up with those factors.

I recently read that the areas around Boston seeing the most price decreases are the farther out areas since people tend to have to commute into the city for work. With the current price of gas, people are still willing to pay a premium for a shorter commute.

Your best bet would be to get with a local real estate agent who can give you a better idea of what your local market conditions are.

Answer 6

You explained why it is a Buyer's Market.  People either don't have the money or are afraid of buying during a down-turned economy.  As such, property prices have dropped and those that are buying can be more selective.  Whether to buy or not depends on your personal financial confidence.