Comments on: First-Time Homebuyer Tax Credit

By: C-Philly

C-Philly — Fri, 13 Nov 2009 18:27:28 +0000

I think that you both have great points, but the market is a bottom right now. Is it at THE bottom? No one can say for sure, but it already looks like prices are going back up. Yes, the reason that prices fell was b/c of many reason, including but not limited to some of the reasons that you mentioned.

We do live in a fairly recession-resistant area because of all of the government job and relocations here. Arlington, for example, is not an area which saw much decline, even in times that you saw considerable decline everywhere. Forbes.com even lists the Washington area market as the number 2 best housing market in the country.

That $900,000 condo is priced where it is because that IS the reality of the situation. It’s all about supply and demand – and there is no shortage of demand here. Prices are only going up (although not considerably up) from here.

Don’t hold your breath.

By: John

John — Fri, 13 Nov 2009 17:04:09 +0000

Having balls to buy isn’t the issue. If you’re wondering if I could make it work? Then Yes I”m sure it could be done. Given the scenario I discussed above it’s not about right now that I’m commenting on. If the housing prices remain artificially high through via government price stabilization, it will only be a matter of time until the house that I “Had the Balls to buy” hits another bust in the housing bubble madness and plummets in value. Then my balls will be in the banks hands with a house worth a fraction of my Mortgage.

My point is that through mass inflation of the money supply, mixed with continuous efforts to stabilize price and prevent the liquidation of bad debt in the housing markets, prices will remain way higher than they really should be, further contributing to another housing correction in the years to come. Instead of letting the prices fall out to an acceptable market level where many people could afford to buy at competitive rates, the prices are trying to be salvaged in order to help people hold on to the artificial wealth created by the initial housing bubble and terrible lending practices.

For now I’m going to wait. Because I’d rather get that 900,000 condo for 400,000 in a few years when the price reflects the reality of the situation.

By: Joe Investor

Joe Investor — Mon, 09 Nov 2009 22:23:59 +0000

This is a reality check for the age group of 25-30. Are you even aware of the inventory on the market within the D.C. area? Many people this generation believe they can live the high-life without having to work for it, and feel like they are entitled to so much. People, we have to live within our means! There are plenty of homes that are affordable within 30 miles of DC. Let’s make a couple of general assumptions first. A young couple making $120,000 with $500 debt per month is looking to buy a home. Based on current lending ratios they will most likely be able to afford up to a $450,000 home.

You can easily get 3000+ sq ft home for $450,000 located in Ashburn, VA – less than 30 miles from D.C. and not a short-sale. But you have to go all the way out to Ashburn to afford something right? False! There are tons of non-short sale townhomes and single family homes with upgrades in Arlington, Herndon, Burke, Fairfax, etc. Please let me know if you want pictures/MRIS numbers of those properties. I’m sure Carol has those.

You may talk a big game, but do you have the balls to buy?

By: John

John — Mon, 09 Nov 2009 16:08:37 +0000

This policy does not help the housing markets, it’s only a short run band aid to get people to spend money and stabilize prices. By preventing a true correction to the housing prices, policies like these actually make less people buy a home. Not until home prices go down to realistic levels will we see the trend of a strong buyer market emerge. Take D.C. for example. Young couple making 120,000 jointly, wanting to live anywhere remotely close to D.C.. Only problem, even a single family 2 bedroom bungalow is running upwards of $600,000 for a fixer-upper. I laugh when I hear of a $900,000 three bedroom condo in Clarendon. Bottom line is that prices got too high from relaxed lending policies and excess credit. Prices need to drop and the bad debt needs to be liquidated, not dispersed and hidden. People in my age group of 25-30 would like to eventually afford to buy something within 30 miles of the city.