Quote:
Originally Posted by Ducay
For us, the main issue is mainly people telling us to wait for the market to come down more. We're looking at buying in the summer (by August) and I really don't want to rent a place just to wait and see if the market does come down a bit more.
Am I crazy for wanting to buy? Depending on what we end up with, we'd likely be in that place for 4-5 years.
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It's inevitable that prices will go down more, but nobody knows how much. Inventory and sales are more in line than they have been so things should stabilize somewhat, but if you get in, do it knowing that you're going to take some kind of hit over the next couple years.
For renters I don't think it's crazy to buy right now. Just buy beneath your means and pay down the principal aggressively. If you can pay down the principal at a rate equal to the depreciation of your home, it's a wash when compared with renting. Just don't get caught paying compounding interest on the depreciation.
The best thing to do, IMO, is keep yourself locked in at a good interest rate and play wait-and-see. Most expect a pricing dip in fall, and interest should still be low by then but you never know. You can get a 5yr fixed at 3.95% right now. Get pre-approved, most places honor the rate for 90 days, and if the rate goes down in that time you get the lower rate. If/when the right deal comes you're ready.