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Does it make sense to buy?

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May 28, 2008 – Comments (6)

Some are thinking the prices have declined enough that the cost of owning, even if the market might head down further isn't too bad.   David Leonhardt's piece is good read.

I'd have to say I feel the same, that I don't need to buy a home at the lowest price, but a reasonable price.  I got into the housing market at a top, and it hurt.  I left at another top, and it was helpful.  Will I be a home owner again?  Not at the crazy prices in Vancouver.  The affordability index of average home cost to average wage is something crazy like 8.  I'd consider being a buyer again at somewhere around 4-5 even though that is considered moderately unaffordable.

6 Comments – Post Your Own

#1) On May 28, 2008 at 9:04 AM, dwot (97.03) wrote:

I must have been ahead of the trend here on selling my place in terms of real estate commissions.  I went for a 1% realty and ended up paying more to the realtor that brought a buyer, but not a lot more.  I think our real estate fees came to about 1.5%.

I had mentioned to my previous realtor that we were thinking about selling and he really didn't take that seriously.  He thought he had it in the bag for doing nothing and when we were ready to list it was his for the taking...   

But here is something I completely don't understand.  These idiot buyers, and idiot is a good description, search the internet, find a property they are interested in, and then they go to a Realtor.  The Realtor puts through a paper giving themselves an extra $5-10k, and they expect to get a better deal from us?  They are idiots.  The best chance to get an extra $5-10k in their pocket is to by pass the middle men.

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#2) On May 28, 2008 at 9:06 AM, dwot (97.03) wrote:

Ekkk.... How much pricing power does Dow have?

 

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#3) On May 28, 2008 at 10:17 AM, AnomaLee (28.88) wrote:

If you start feeling this way about the stock market let me know. I will buy across the board.

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#4) On May 28, 2008 at 12:04 PM, thepull (99.54) wrote:

I live in the Seattle area and it's pretty amazing the amount of houses that are for sale. The prices people are asking are still not in line with reality. Seattle has been behind the times with price drops though.

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#5) On May 28, 2008 at 12:41 PM, PDTBiotech (93.02) wrote:

I had hoped the internet would downsize the traditional RE sales framework significantly - why old-fashioned realtors still have jobs is beyond me.  I'm still hoping awareness continues to build and then one day the entire sorry industry implodes when someone develops an online matching system that a) works b) is dirt cheap and c) achieves Google-esque popularity.  It'd be interesting to see what effect much lower commissions would have on housing prices over time.

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#6) On May 29, 2008 at 10:46 AM, camotop (23.38) wrote:

dwot -- The idiocy goes both ways.  There are the idiot buyers and idiot sellers who let the realtors play the transaction game.  A motivated sellers agent will hook up with a motivated buyers agent to get a deal done often at the expense of one, the other or both but never to the detriment of a realtor.

I'm not saying that all realtors are like this but at the end of the day realtors are looking to get that transaction done any which way. 

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