Buying & Selling: Is Now A Good Time To Buy?

The National Association of Realtors is pulling out all the stops with a glossy campaign urging readers to buy NOW, because the worst of the bubble is behind us. Or something.

No less an authority than Kendra Todd agrees, particularly urging us to take advantage of people caught upside down by toxic loans and are in foreclosure. No, really read this advert:

Now's the time to jump back on board the wagon for pre-foreclosures, foreclosure properties and distressed home sales. When everyone thought home prices would rise forever (and it's amazing how short people's memories are, isn't it?), many buyers abused interest-only, adjustable-rate "creative financing." Now they're "underwater," owing more than their home is worth and unable to make rising payments. Take advantage. (Emphases added.)

So we have a self-proclaimed "highest producing REALTOR" telling buyers to deliberately target properties on the market because the previous owners got jerked by The Adjustable Rates Of Doom--the very same lending vehicle that powered the housing boom, bubble, and bust in the first place. What would The Donald say?

I am of the mind that any potential owner that has done their research, negotiated smartly, and--most importantly--has saved and invested enough to put down for a 30-year-fixed loan--can buy in this market. But the problem is the same problem that we've had for the last five years--buyers are being enticed to put money down for properties far beyond their market value, using lending instruments that will cost them far more money in the long run.

I'm not as bearish about the market's chances as some of my estimable fellow bloggers--it IS possible to buy into this market and survive IF you're smart. But I'm not drinking the Kool-Aid either. For there to be serious reinvestment in housing, prices need to come down and stay down, inventory has to be moved off the market, and our savings need to improve dramatically. That's still years off, if ever.

Posted at November 4, 2006 06:08 PM

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The National Association of Realtors is pulling out all the stops with a glossy campaign urging readers to buy NOW, because the worst of the bubble is behind us. Or something. No less an authority than Kendra Todd agrees, particularly urging us to take advantage of people caught upside down by toxic loans and are in foreclosure. No, really read this advert: Now's the time to jump back on board the wagon for pre-foreclosures, foreclosure properties and distressed home sales. When everyone thought home prices would rise forever (and it's amazing how short people's memories are, isn't it?), many buyers abused interest-only, adjustable-rate "creative financing." Now they're "underwater," owing more than their home is worth and unable to make rising payments. Take advantage. (Emphases added.) So we have a self-proclaimed "highest producing REALTOR" telling buyers to deliberately target properties on the market because the previous owners got jerked by The Adjustable Rates Of Doom--the very same lending vehicle that powered the housing boom, bubble, and bust in the first place. What would The Donald say? I am of the mind that any potential owner that has done their research, negotiated smartly, and--most importantly--has saved and invested enough to put down for a 30-year-fixed loan--can buy in this market. But the problem is the same problem that we've had for the last five years--buyers are being enticed to put money down for properties far beyond their market value, using lending instruments that will cost them far more money in the long run. I'm not as bearish about the market's chances as some of my estimable fellow bloggers--it IS possible to buy into this market and survive IF you're smart. But I'm not drinking the Kool-Aid either. For there to be serious reinvestment in housing, prices need to come down and stay down, inventory has to be moved off the market, and our savings need to improve dramatically. That's still years off, if ever.