Why It's a Bad Time to Buy a House: High 'Real' Mortgage Rates, Record Inventories

You've gotta be kidding. You don't buy a house to live in with the intention of selling it in a year or two. If your job is not in immediate danger, you can comfortably afford the payments, and plan to stay there for at least 3-5 years, buy it! Anything else they tell you is ludicrous. Don't make the mistake of waiting to buy your first place at 38 if you can help it. Although I've done OK by buying in a good area, I regret not having bought sooner. Sincerely, Juan Faneca

I think that prices will go much lower before bottoming. A property is only worth what someone is ready, willing, and able to pay. The upcoming generation will have lower salaries due to US companies facing increasingly stiff foreign cost and quality competition. They will not be able to pay very much for a house.

Yo Ray, You must be a frustrated seller. As a Buyer, I say hold out. Prices are going to drop

This kind of crap will do wonders for the economy and real estate industry. Where does Ann Sonders get her crystal ball...I want one too! It is people like Ann Sonders that have caused this crash with all their wonderful outlooks. She is real intelligent and I would not invest with her for anything. Buy a home if you like it mortgage rates are good and prices are down. I think Sonders is referring to California, Arizona,Florida where prices were too inflated to begin with. People makes four times their money (on interest only loans...thanks to the wonderful Banks) and lots of speculation.

Juan, I have to say I disagree with you. What you are talking about is just buy a house, not use your money wisely.

The value of a home doubles every 10 years. Ride out the storm. This downturn can't and won't last forever. And don't forget the tax advantages of home ownership.

That article is a sham. They take into account one type of buyer that is not even in the majority. I am looking to buy a larger home to take place of my current condo. While I agree the price may depreciate, and I will be taking a small loss on my condo, I will get the home at an even heavier discount, and I worry very little that I will make not out in the end. This is a great time to buy for many.

Falling home prices, NOT IN N. DALLAS!!! They sell quick here.

This is like catching a falling knife in stocks? NO When you can buy a property at a big discount to replacement cost and the area it is located has been good in the past I would say buying is a good investment. This person is obviously in-experienced and lacks investment savvy.

Raysails, Next year when your home is worth less then you bought it for and more importantly the principle you have in the home you will realize what Ann is talking about.

I agree raysails. No one called the top, no one will call the bottom. However, it's hard to look bad if you keep saying prices will continue to decline, but are wrong. So everyone and their grandmother are predicting xx% further declines. Not to mention, I believe that further declines will be local, not national. So if you do your homework, get your credit in shape, and have been saving for a down payment, and are ready to buy a home, why not look now?

I totally agree with raysails. I love how you can see two articles with polar opposite views on the same subject within the same page of yahoo finance. Which one is right? Not this one in my opinion.

I don't agree with these expert comments. We didn't see any such expert comments before the crisis. I believe that nobody can predict the market and local markets considerably vary from national market trends. If past few months sales figures are of any indication, Silicon Valley prices started climbing up!

Waiting to buy real estate because the market is down is rediculous. It's like riding the stock market, which everyone knows is not recommended. You buy as an investment and you will be successful long term. No one will know where the bottom of the real estate market was until it rebounds, and by the time we know it is recovering buyers will not have the strong advantage they have now. This is a great time to be a buyer and the mortgage restrictions are only going to get more prohibitive for buyers.

What ever happened to personally valuing the house you want to buy for what you personally think that it is worth. A house becomes your home. It is not some equity that you try time for when it bottoms. Houses shouldnt be something that is thought of that way unless you are into buying and flipping quick, but those days are over anyhow. If you like the house and the nieghborhood and can afford it, then buy it.

Finally someone with some interesting and intelligent and quantifiable point of view on housing prices and real affordability. My question to all is this, what happens to the measure of affordability when housing prices continue to stagnate AND interest rates go UP, UP, UP. Do we really think we can continue to suffer inflation rates at this level and not increase interest rates. Do we really want $6 gas? I sold my house 2 months ago and moved my family into a rental home. Did I make money selling, no, I'm I glad I made the decision, Yes. Do I think the gov should bail out the Banks over the mess they created, ABSOLUTELY NOT! I'm ultrashort the banks and real estate and I hope it keeps going into the toilet, so when prices really do come down, the smart ones will be able to buy at value prices

Note to those who assume that I 'must' be this or that: My place is not on the market, nor will it be, for several years if I can help it. As I said, I bought in a nice area. My home has appreciated quite nicely, thank you. Recently appraised almost $90k over purchase price. Good luck trying to time the housing market, geniuses! Sincerely, Juan Faneca.

That "Real" mortgage rate was at best, stupid. According to that if you bought 2 years ago your "real" rate would have been better even though the bank rate was higher and your house has lost great value since then. Sounds like the "real" rate 2 years ago was more like 20%-30%. Stupid.

It is the articles like these and the media is the cause for this economic mess to linger on. If you are in the market to flip the house and use it as a short-term investment, then NOTHING is a for sure profit maker. People whom write these articles are clearly not humans with feelings, for if they could predict the future, they wouldn't be writing these articles they would be playing the loterry all over the country winning the billions.

don't conflate a place to live with an asset. If you want a house, and you can afford it, buy it, but don't expect it to substitute for your retirement savings. A house is a liability, not an asset. However, you have to live somewhere.