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WSJ - housing in certain cities overheated and is shaky...
2013 Jun 12, 4:18am 1,578 views 5 comments
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FortWayne
2013 Jun 12, 4:27am
It feels like a twilight zone when a major news source publishes the same information that was preached on patrick.net for years...
1) Don't buy house out of irrantional fear that world is running out of houses.
2) Be smart with your finances.
3) Make sure you have enough savings that buying a house isn't going to bankrupt you.
4) Don't overstretch yourself financially.
5) First-time buyers should also explore how much it will really cost to own. They often forget about the costs of things like insurance, maintenance and renovations.
Bigsby
2013 Jun 12, 6:01am
Enjoy Your Hope and Change says
Interestingly, Zillow, which was showing "appreciation" to the tune of 30K per month for every house in my neighborhood, suddenly (after 3 or so days of showing to price estimate at all) showed 10K per month of depreciation instead. I know, I know, Zillow's estimates are pure shit, but still, it's an interesting reversal.
Zillow goes up and down like a yo-yo. Prices in Monterey don't seem to have changed greatly over the last 2 years and I've seen my house price fluctuate in a 120k range in that period with Trulia frequently going in the opposite direction. I have no idea why I look at it from time to time as it seems utterly disconnected from reality.
Zillow goes up and down like a yo-yo. Prices in Monterey don't seem to have changed greatly over the last 2 years and I've seen my house price fluctuate in a 120k range in that period with Trulia frequently going in the opposite direction. I have no idea why I look at it from time to time as it seems utterly disconnected from reality.
Zillow needs a lot of activity to be more than directionally correct about an area.
FortWayne
2013 Jun 12, 8:51am
Zillow goes up and down like a yo-yo. Prices in Monterey don't seem to have changed greatly over the last 2 years and I've seen my house price fluctuate in a 120k range in that period with Trulia frequently going in the opposite direction. I have no idea why I look at it from time to time as it seems utterly disconnected from reality.
Zillow needs a lot of activity to be more than directionally correct about an area.
Zillow just shows sale prices, they don't have any knowledge of the condition of the property.
http://online.wsj.com/article/SB10001424127887324299104578531132265680630.html?mod=djemRealEstate_h
I know some folks on the forum are either looking, or are worried. This industry affects everyone out there.
If you go out there, just beware. Apply common sense logic to finance, use patricks calculator to litmus test the situation. Only you know your financial situation, not your agent.
From the article:
"But it may make sense to take a breather before you buy a home and wait for prices to drop, as institutional investors might be inflating home prices.
Namely, Wall Street investors are scooping up homes in bulk, and there's considerable concern this is inflating prices in certain areas of the country-and pricing individuals out of the market in general."
price gains in certain markets, especially in some areas of California, are a potential cause for concern as some "fundamentals" aren't keeping pace with gains
"Do not rush into it and stretch yourself financially to buy based on an irrational fear that if you don't buy now you will miss out on the opportunity to buy ever," warns RealtyTrac vice president Daren Blomquist.
He anticipates more homes becoming available as early as this fall in the form of shadow foreclosure inventory in some markets as well as in the form of nondistressed sellers who decide to list their properties because prices have risen enough for them to justify doing so.
No matter what the market conditions, the purchase of a house needs to be viewed primarily as a home with any investment consideration being a "distant second," says Erik Davidson, deputy chief investment officer at Wells Fargo Private Bank.
"Progress toward other financial goals-an emergency fund, retirement, college fund, etc-shouldn't be waylaid in the pursuit of the goal of owning a house," he says.
It's wise to have a down payment of 20%-to avoid paying for private mortgage insurance-and plan to live in the home for at least five years, says Stan Humphries, chief economist at Zillow, a real-estate listings company.
First-time buyers should also explore how much it will really cost to own, says Edward Kohlhepp Jr., a financial planner in Doylestown, Pa.: "They often forget about the costs of things like insurance, maintenance and renovations."
#housing