Comments on: Prices to fall more?

By: Jimmy H

Jimmy H — Wed, 04 Nov 2009 17:14:21 +0000

Pain- I agree with you. I am actually renting too and growing my down payment. I refuse to buy until rates go up and the tax credit goes away……….but I cannot see the government just taking out all price supports at once and letting housing crash……as much as I want it to. I just feel that the government is going to want inflation to eat away everyone’s losses.

By: pain in the

pain in the — Tue, 03 Nov 2009 23:50:52 +0000

couldn’t disagree with you more Jimmy–the main reasons are that we have sagging sales numbers and dropping prices while the government is stimulating housing and we have historically low interest rates–in a year or two we could possibly have no 8K tax rebate and 8 percent interest rates on 30 conforming loans. 8% vs 5% equates to about a 45% percent increase in monthly payment. I know me and my ever increasing down payment will be renting until we hit 8%.

By: Jimmy H

Jimmy H — Tue, 03 Nov 2009 14:02:47 +0000

I can see economic trends changing house values, etc, but in the Boston area have things really changed that much since 1998?? We have always had higher education here, and I even think there were more companies based in Mass in the 90’s then there are now (Genuity, etc). Prices still have room to fall when compared to incomes, but we might have reached a plateau for now. Then it is just a matter of time until inflation allows incomes to catch up to home values……whenever that might be.

By: anon2

anon2 — Tue, 03 Nov 2009 13:16:36 +0000

Sounds like a permanently high plateau.