Is this a good market to buy and sale a home?
Mikie Likes It! asked:
My wife and I live in a condo we bought in the upper $200′s. We want to upgrade to a 3 bedroom condo or townhome. Is this an opportune time for us to make the change or is a bad real estate market not a good time to do this. With the prices of some places coming down, I heard it might be a better time since property taxes would be lower. But I am not sure what other factors are involved. Help!!!!
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My wife and I live in a condo we bought in the upper $200′s. We want to upgrade to a 3 bedroom condo or townhome. Is this an opportune time for us to make the change or is a bad real estate market not a good time to do this. With the prices of some places coming down, I heard it might be a better time since property taxes would be lower. But I am not sure what other factors are involved. Help!!!!
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June 27th, 2010 at 9:42 pm
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Current events 101……Nobody is selling their house
June 30th, 2010 at 2:06 pm
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yes, i think it is a great time! all of the home owners are giving away cars, vacations, and even money because they are so desperate to get their house sold. aloha! i bought my house 2 yrs ago and got a free hawaii vaca!
July 3rd, 2010 at 9:13 pm
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most places it’s a bad market to sell right now – supply exceeds demand and homes are going for less than they did last year – home prices coming down do not change the real estate taxes- they aren’t based on market value usually and the assessed value used for tax purposes is usually only revised once every few years if that frequently
July 5th, 2010 at 6:32 pm
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You know the US is in one of the worst housing slumps in many years, right? Do you live in the US?
Personally I would wait at least six months before investing more money. This housing deflation may be worse than many people think.
Curious about flat fee real estate?
July 6th, 2010 at 12:17 pm
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It’s a great time to buy.
… if you can sell.
July 9th, 2010 at 4:28 am
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So, you’ve stumbled upon one of the secrets to a buyers market, Congratulations! Buying up in a down market is almost always a great investment! Here’s an example:
Current Value of Home Last Year 1,200,000
Today’s Value 925,000
Net “Loss” In Value 225,000
Value of new larger home last year 1,800,000
Today’s value of new larger home 1,380,000
Net “Gain” in Value 450,000
Gained advantage in move up purchase 145,000
In addition, your new basis for appreciation is higher, providing over a 10 year period $641, 822 in additional equity. (The difference in appreciation between 1,380,000 and 925,000 assuming a modest 3.5% average appreciation rate).
Things to remember: The cheaper property will almost always be available to a wider number of buyers. More buyers typically means more demand. This stablizes prices at the lower end of the price range. You’ll need to see what your property is worth today and what your net would be after you subtract your sales costs.
Felicia Randall
July 9th, 2010 at 7:16 am
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In my area, appropriately priced homes are selling. For those holding on to their dream price from a couple years ago, they are sitting for alot of DOM.
Property taxes have not been significantly affected by this downturn, so that is a non-issue.
If you can sell your condo, it is a great time to buy.
July 12th, 2010 at 2:07 am
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Maybe just do it…
I doubt the market’s bottomed yet, but you own a condo anyway… Whatever condo you own may decrease in value… What difference which one?
Interest rates aren’t as low as they were… But, they will likely go even higher as “the powers that be” are forced to admit we have a very real inflation problem. So again… If you really need the larger space… Why wait?
If property values continue to drop, the tax folks will just take a larger percentage.
In this economy… Do not buy anything you can’t afford while also putting away some money in savings. Maybe a little gold and silver too. Being forced to sell in a very bad market is what can happen in a declining economy and what to avoid at all cost.