Need help!! Realestate bubble-should I buy now or wait?

  1. We are very interested in a condo, about 510K in westchester county, new york. Since the price is relatively high, I can't help but thinking about the real estate bubble that everyone is talking about. Should I wait until the price drop or should I get it now?
     
  2. I'm in Real Estate in Toronto so I'm not sure about your specific area but I will tell you that the real estate market always goes back up....it's really inevitable.

    If you want to buy now when prices are higher I say you should do it....while the prices MAY drop for a while....they WILL go back up again....there's no doubt about it.

    I know in Toronto the condo market is hot right now....not sure about NY though.
     
  3. I don't see Westchester dropping significantly. It may level off, but you won't see big drops in numbers.
     
  4. I agree with TheImportersWife there-Westchester has always been a high priced area-I don't see it going down much.

    How big of a condo is it for 510k? Around here-you get a smallish 1 bedroom for 450k-so, 510 sounds good to me if it is bigger than a 1 bedroom.
     
  5. It's really hard to say. Yes, generally, real estate prices have increased over time, but there have been long extended periods where prices have flattened out. Prices have decreased recently in much of the US. No one can tell, not even the "experts" whether house prices will continue to fall or not.

    Never treat real estate as an investment.

    Buy it if you can afford it, if it fits your current lifestyle/plans, etc. Also, to calculate how much it really costs you, you have to subtract out the rent or mortgage of your current home. You may find it to be more economical to buy this new place.
     
  6. I'm not sure about real estate in the USA so I can't really say anything about that but I will add that in Toronto real estate prices always go up and down and do flatten out at times....but real estate prices here ALWAYS go back up. When I was getting certified to sell real estate we were shown a chart that documented real estate trends in Toronto for the last 50 years and while there were some low times....it always went back up again....that's the great thing about real estate!!

    That said, I agree that nobody can really predict what's going to happen in real estate....but we can take educated guesses based on employment rates, new housing, consumer confidence, etc.
     
  7. If you are intending on purchasing this property and holding on to it for more than ten years, I would say go ahead and do it. If you are looking for a temporary residence for the next couple of years, I would consider renting.

    I live in the OC and prices here have skyrocketed but, as I understand it, the process are starting to drop/level off.
     
  8. I think if you're planning on living in it for a while - go for it (as was said before). Real estate is an investment in that you're not throwing your $ away and it is there if you need to sell... but I think a lot of people go in thinking they're going to earn a lot when they sell, and that isn't always the case, depending on how long you hold on to it. Just remember to take into consideration taxes, assessments & insurance when you look at the condo. Good luck!!
     
  9. Yes, agreed.
     
  10. I just mean don't get trapped into thinking that the property value will always increase. There are actually some areas where property values have not increased over time. This is the minority, of course, because population is increasing and more people need places to live. There have also been extended periods of time (like for hundreds of years) where prices have flattened.

    I know many people who do academic research in the real estate markets (some of which are very well known professors who are constantly being cited in WSJ, NYT and NPR).
     
  11. Thank you Kimm. I always think that the price will eventually go back up since the land is limited...that's just my explaination of why...i know.. aemature...:shame:
     
  12. thanks, Nishi, it's 2 bedroom 2 baths. :graucho:
     
  13. Hi Sonya, thank you for your responses. I am not planning on making a killing out of re-selling the condo,:girlsigh: I am just thinking maybe I should wait until the price drops.. :shrugs: but I don't think real estate is that predictable....
     
  14. Thanks, Blue824, Yep... we are definitely saving money by buying the condo...(and not buying anymore bags..:crybaby: )
     
  15. Hi Lelgin, 10 years? :wtf: I am not sure...but at least 7 years... the rent here for a 2 bed room is about 3000...so maybe it's better off to buy...:love: