Comments on: Boston MSA prices drop 5%, year-to-year; conforming loan jump seen as panacea

By: Bob

Bob — Wed, 06 Feb 2008 14:32:19 +0000

Assuming interest rates stay the same there are some deals now that are pretty amazing. I have a customer who is purchasing a three family in Cambridge. He is putting only 5% down and with rental income will be living for less than $1000 per month in his unit. This does not take into account the fact he is paying down principal and the fact that there is significant tax advantages with his rental units.

By: Kevin

Kevin — Wed, 06 Feb 2008 11:10:28 +0000

I’m with you Robert.

There’s no way on god’s green Earth I’m gonna jump into this market right now. Yikes.

Recession brewing, prices wobbling or sinking. Scary.

By: Robert

Robert — Wed, 06 Feb 2008 04:31:11 +0000

Robert Schiller was just interviewed on Wealthtrack this past weekend along with Charles Ellis (no dummy). As I first posted about 4 months ago his predictions were bleak for housing. His current assessment is that the acceleration in falling home prices continues unabated. He fully understands this can’t go on forever, but sees no improvement i.e. no bottom on the horizon yet. When pressed for his best guess as to a recovery he responded confidently with “years”. He admonished that homes will no longer be wealth creation tools and that people still haven’t realized that. Take home message: Whatever you do don’t buy now, and when you do, buy small.

By: John A Keith

John A Keith — Tue, 05 Feb 2008 20:52:18 +0000

Well, prices certainly aren’t going to go up!

If you’re thinking of buying within the city of Boston, I’d say wait until March – April -May and re-evaluate your options, then. If not then, wait until the fall.

Outside the city? Yeah, what’s the worst that could happen? Interest rates aren’t going to go up, prices on average aren’t going to go up … unless your life situation makes you feel confident that you’ll be in the same home for five years+, why rush?

By: Sidelined

Sidelined — Tue, 05 Feb 2008 20:44:08 +0000

THanks for pointing out another tool for analysis.

As a sidelined buyer waiting to buy in the western suburbs I do not feel compelled to make my move for at least another year. I have the cash, just not the faith in the values of the homes going up.
Market timing is everything.