Look, if you’re a short-term speculator, stay out of this market. The party’s over for now. But if you’re just a regular person who needs a place to live for several years, buying versus renting can be cheaper in the long run. read it
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Reno Ignoramus
So I guess this is an acknowlgement that we are, in fact, in a declining market? How nice to encounter a realtor who isn’t telling us the sun rises in the West.
Stock spin piece from the National Association of Realtors. Surely total objectivity there.
From USA TODAY:
“The national median mortgage payment is $1687 a month, nearly twice the median rent payment of $868 a month.”
“‘For someone debating whether to rent or buy in a market that’s experienced recent and substantial price run-up, it may be better to delay the time of purchase and see what the market looks like a year or two down the road’ says Stuart Gabriel of the University of Southern California.”
USA TODAY, August 10, 2006
gotlots
I’m not picking on Somersett, really. But let’s look at MLS #60001486. This house was originally listed lower, but is now at $699,000. Why would anybody raise the price in this falling market?
Well, welcome to the short sale. That is when the house is being sold for less than the debt encumbering it. The lender has to agree, since the lender is taking a reduction in the amount of its loan.
There is no surer sign of a market in trouble than short sales. The lender is recognizing that the gig is up, and that the house cannot be sold for what is owed against it. The lender agrees to the short sale rather than foreclose and end up with the house in REO.
The asking price on this house was raised, no doubt, to satisfy the lender’s short sale requirements.
Oh yes indeed, there has never been a better time to lock in declining value than now. Just ask this lender.
Diane Cohn
Interesting. According to county tax records, the owner paid $789,285. 207 days ago, the home was originally listed for $799,000. At one point the price was reduced to $789,000 then $769,000 because there are two others exactly like it up the street for sale with better positions on the golf course (this one doesn’t even touch the green and is on a fairly busy corner). Now, at $699,000, the home is finally priced to sell, and when it does, it will bring down the comps for my entire neighborhood. So be it. Supply and demand will determine true value.