Time to buy?

[ecstasy_civic]

My fiance and I are looking at buying our first home together, just wondering if I should be waiting or jumping on something soon.

The reason I ask is ive heard totally different opinions from credible people and im wondering if anyone has some advice one way or another.

Thanks.

[98type_r]

This is the 3rd month in a row that median prices have dropped. Nothing substantial, but a step in the right direction for a first time home buyer. If this is a home that you'll be in long term and not a short term investment then go for it.

[Antonito]

Originally posted by 98type_r
If this is a home that you'll be in long term and not a short term investment then go for it.

Best advice you are going to get. The market could dip way lower and you'll feel a fool for buying too soon, or it will recover and go back up and you'll have lost out on lower prices. Now is not the time for investement properties, but if you're buying a place to live, and can afford the current prices, go for it. There'll never be a "perfect" time, so might as well just do it and be done.

[ecstasy_civic]

We've found a home we can see ourselves in for the next 5-10yrs so I guess thats a good thing. Maybe time to take the plunge:eek:

[dimi]

In general does the housing market slow down as Fall/Winter sets in?

[black_2.5RS]

If you're buying a home to live in, now is a good time. A home is a long term investment - if you're thinking 5-10 yrs out, you'll be in good shape in the long run.

[teggypimp95]

Dont buy now, it is slowly coming down. The lowest is always around january and febuary in the coldest months. Wait till then.

[eina15]

If its a home you and your fiance are excited about, and could "see yourself living there for 5-10 years", I say go for it.

The decrease in house prices between now and January will be negligible. If you were investing, might be a different story, but if this is going to be your home and a place to build your family, and its right for you, go for it (IMHO) :thumbsup:

[teggypimp95]

No one likes to lose money or over pay, investing or not. If your living situation right now is ok, and you can go a little longer i say do that and watch the market closely. No one usually stays in their first home for 5-10 years. You have kids, you want bigger, you want newer, dont like the location any more etc.

[cocoabrova]

Originally posted by teggypimp95
Dont buy now, it is slowly coming down. The lowest is always around january and febuary in the coldest months. Wait till then.

It IS a buyer's market right now yes, but I agree with teggypimp95 - it would probably prove to be more beneficial to hold out for a few more more months. Also when you do start looking, try to check out the FSBO (for sale by owner) houses first as you'll have alot more room to work with when it comes to negotiating prices:thumbsup:

BTW I think there are at least 7500 listings in Calgary right now: 4000 or so houses and the rest condos/townhouses. You won't have a problem with choice in a few months as the market's a flooded IMHO, but prices should drop substantially by then......

[Akagi Redsuns]

Originally posted by teggypimp95
Dont buy now, it is slowly coming down. The lowest is always around january and febuary in the coldest months. Wait till then.

Didn't the price start climbing in January 2007 though? It was falling in the months before though.

To the original OP, it doesn't look like it's the prime time to buy to me, sales are falling and inventory is up. Only a matter of time before the prices will start falling as well as it starts to be more in favor of a buyers market . Since I bought a place for residence in late 2006, I hope it will be a soft landing and not a big correction though as losing money would suck.

An alarming thing is to look at some of rents that some of the placing would be getting.....not even close to what the mortgage and other costs would be. Hard to see the value in a lot of places for sale right now.

[ecstasy_civic]

Thats the reason were looking for a home, I wont pay $1500/month for our condo, its just not worth it.

Thanks for the input, it helps:)

[Xtrema]

Originally posted by Akagi Redsuns


Didn't the price start climbing in January 2007 though? It was falling in the months before though.

To the original OP, it doesn't look like it's the prime time to buy to me, sales are falling and inventory is up. Only a matter of time before the prices will start falling as well as it starts to be more in favor of a buyers market . Since I bought a place for residence in late 2006, I hope it will be a soft landing and not a big correction though as losing money would suck.

An alarming thing is to look at some of rents that some of the placing would be getting.....not even close to what the mortgage and other costs would be. Hard to see the value in a lot of places for sale right now.

The past real estate high sale cycle is spring (May June) and fall (Aug, Sep). 2005/06/07 is the exception.

Fall 2006/07 had high prices due to low availability. Since then, people stop moving here due to high prices and new houses has eased demands.

The adjustment is inevitable but it's about 6 months out of my prediction.

[spikerS]

i have been around real estate for quite some time. I think buying a house right now for investment or otherwise at this time is premature. If you want a house to live in, I would wait till february, investment? right now, i would not invest in the market. The market is correcting itself right now, and alot of people are going to loose thier shirts. If our economy can weather the sub prime credit market crash in the states, and the oil fields able to prop up the market even more, the prices should not drop too much more, but the huge growth we have been watching is over. Personally i think there MIGHT be a slight price increase around march/april, i see the markets sliding again soon after. in the not too distant future, i see supply far outweighing demand. From indications and numbers i have seen from other realtors, rent is some places is starting to come down.

[ecstasy_civic]

Thing is, rent in the buildings around us is jumping every 6months, our neighbor is paying $1800:confused: that lease was just signed 3weeks ago.
My fiance wants to put in an offer this week, but... im VERY hesitant I really am lost lol

[kaput]

.

[tictactoe2004]

Im not a real estate expert but i do track houses on the mlxchange like a hawk. It all comes down to what you would rather have? The perfect place for you? or a place that both you and fiance can make work for the next 5-10 years and you get instant equity when you buy. If you'd prefer the perfect place for you, start looking now and buy when you find it. If you want to make instant cash, wait till around mid to the end of december, find some places that are already good deals and low ball a few people, i'm sure you'll get someone to take a wicked low offer. Usually if people list around christmas it's for a reason other than moving up into a nicer place. By spring you'll already have made some good coin in equity.

[HRD2PLZ]

The fall or winter months are generally a good time to buy because you have the more "serious" sellers, not so much anyone who puts a sign on their lawn and if it sells great, if not, no biggie. We see a lot of those in the spring and summer months. Prices are slowly coming down a little bit and this is more of a buyers market. Good, well priced listings are still selling fairly quickly though.

Good Luck! :thumbsup:

[Euro838]

I don't think people are desparate yet, give them a few months and those that are eating expenses and costs will get frustrated and have to sell much lower rather than bleeding...I think we'll see things decrease even more once the city begins to release more land.

[Super_Geo]

I've heard that the key to long term success is to always buy and never sell. Housing is an inflation proof investment, and if you have a lot of equity you can always leverage against it for quick, low interest cash for investments.

I just bought in March putting only 5% down, and if prices start falling I will be looking to go 50/50 in a property with my parents.

[SunniSunShine]

im in the same boat ecstacy, im looking to buy as well...

We found a really nice place for 330 FSBO... we were ready to put an offer down, but it looks like he got a real estate agent and jacked the price to 350k... This has been on the market for over a month, and the seller is very desperate to sell, now when i offer him what we are willing to pay we will look like pompous assholes.

Hopefully he takes it though :banghead:

[Super_Geo]

Sunni, if he is very desperate to sell then $330 should be fine... though talk to your agent and see if it's over/under for its market.

They will counteroffer whatever your first offer is. So if you say $330, they'll most likely come back with $345, or $340. Then it's up to you to either stick with your guns at $330 or meet them halfway again at $335 etc.

For my property I only haggled it down by $5k, but this was in March at arguably the peak of the boom.

Also, keep in mind that interest rates have been going up. It seems like they will hold steady at 6% for a bit, but if the sub-prime fiasco doesn't turn out to be as bad as everyone thought then I would definatley expect it to go up a bit more.

The way I see it is, had I not bought in March I might've bought for 4-5% cheaper by Dec or next Jan/Feb, but then I'd be paying 6-6.5% interest, whereas I'm locked in for 5.05% for the next 5 years.

[Super_Geo]

Also, if you guys want a kickass mortgage broker PM me.

I went to 2-3, and Lynn beat the others (who were recommended by my realtor) by a long shot. When I went back to the other mortgage brokers with the rate Lynn got me they said "Yeah you better go with that one, there's no way I can get rates even close!" :thumbsup:

[SunniSunShine]

Originally posted by Super_Geo
Sunni, if he is very desperate to sell then $330 should be fine... though talk to your agent and see if it's over/under for its market.

They will counteroffer whatever your first offer is. So if you say $330, they'll most likely come back with $345, or $340. Then it's up to you to either stick with your guns at $330 or meet them halfway again at $335 etc.

For my property I only haggled it down by $5k, but this was in March at arguably the peak of the boom.

We wanted to make an offer at lower than the 330 that he was asking FSBO especially since he made himself vunerable by exposing his desperation, but theres no way im interested at anything higher than 330...

[broken_legs]

Headline from the Calgary Sun:

Housing Prices Slip for the Third month in a row.




The average price of a home has slid for the last three months in a row. However there is some talk that it has slipped more than then numbers show due to increased sales of multi-million dollar properties that are boosting the average.

[Fish n Chips]

It is always wiser to purchase a home than renting one. There will be seasonally fluctuation in prices and inventory. Everyone has a different opinion as to which direction the real estate market goes and which is the best month to buy. A few things hold truth all the time though:

1. Buy when the market is a buyers' market (for long term residence purpose).

2. What return does one get after paying a year of $1600 monthly rent to the landlord? (= $0)

3. What return does one get after paying a year of $1600 mortgage payment to your bank? (= approx $1900, in loan reduction, for a mortgage rate of 6% with 40 amortization)

4. Why do you care about how the real estate market doing in the coming months if you are not going to sell it in a few years?

5. Real estate market is just like stock market index (not an individual stock), in long term, both are trending upward cyclically.

If you buy it now, you may regret it in a few months if it continues to drop BUT your children won't thank you enough in the future as a new home 18 years from now is more likely to be a lot more expensive than today.

[ecstasy_civic]

Originally posted by Fish n Chips
It is always wiser to purchase a home than renting one. There will be seasonally fluctuation in prices and inventory. Everyone has a different opinion as to which direction the real estate market goes and which is the best month to buy. A few things hold truth all the time though:

1. Buy when the market is a buyers' market (for long term residence purpose).

2. What return does one get after paying a year of $1600 monthly rent to the landlord? (= $0)

3. What return does one get after paying a year of $1600 mortgage payment to your bank? (= approx $1900, in loan reduction, for a mortgage rate of 6% with 40 amortization)

4. Why do you care about how the real estate market doing in the coming months if you are not going to sell it in a few years?

5. Real estate market is just like stock market index (not an individual stock), in long term, both are trending upward cyclically.

If you buy it now, you may regret it in a few months if it continues to drop BUT your children won't thank you enough in the future as a new home 18 years from now is more likely to be a lot more expensive than today.

Ya it all makes sense, but I think we will be waiting until December, to clear up any remainding debt. We are getting married in April and it would be great if we can get in before the wedding completely debt free.

[asp integra]

dont buy for a year or so, cause the economy and everything is slowly falling, look at how many jobs in the oil sector they have cut in the last few weeks, i would say buy in a year or 2 when we have more houses than buyers and the prices drop quite a bit

[autosm]

Look at it this way, interest on 300k at 5.5% = $1375 per month add property taxes of $150.00 per month equals the 1500.00 you are paying now

I know its a condo verses a house but owning has a lot of costs per month that you don't pay when renting

If housing corrects 20% down you have lost a shit load . Remember it jumped 45% recently .

If the interest rates go up .5% less people will be buying and prices may drop .

A example that was told to me in 1981 a owner of a property in Calgary turned down 8 mill only to sell it in 1996 for 1.5 mill

I know a lot of people that have speculated on new homes and have them rented at a monthly net loss in hopes of the market going up again . What happens when they have to dump them because they can't keep loosing money every month ?

Also remember rental income is suppose to be claimed as income I have a feeling alot of people are not claiming it . Renting housing is not a high profit venture unless you bought cheep .

The money made is when you sell the house high which I feel is the reason there are 9000 homes on the market now .

Every one is going to try to cash out if ther market goes south .

[broken_legs]

....

blah! Real estate is fun