Seattle Bubble Forum Archive

It may be the best time to buy a house in more than four years.

Home prices have dropped so quickly and so far that valuations - the difference between what a home should cost and its actual price - are the lowest they've been since 2004, according to a report.

The Cleveland-based bank National City Corp. (NCC, Fortune 500), together with financial analysis firm Global Insight, revealed Tuesday that more than 88% of the 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007.

"Housing valuations are almost back to long-term norms," said National City's chief economist, Richard DeKaser. He called current affordability "the best in the past four years."

But DeKaser cautioned that home prices could fall even further.

"This isn't to say home price declines are over," he said. "We could move below historic norms. By the end of 2008, housing markets could be broadly under valued."

http://money.cnn.com/2008/03/04/real_es ... /index.htm

Best time to buy? ridiculous

In the strictest sense, he's probably right. Prices are lower relative to income than they have been in a while. The only problem with such a statement is that next year is likely to be the best time to buy in the last 5 years. And the year after that, the best time to buy in the last 6 years.

Bad headline writing for an otherwise harmless article.

Tim should add a headline to the front page that says "Best time to buy in N years" where N is how long ago prices were last above the current price.

Looking at the Silicon Valley market, I see that my old place is on the market for the same price it sold for in 2003; and yes, somebody is taking a haircut as it last sold in 2006 for a bunch more. But that 2003 price is still too high for my taste.

Just cause it's the best time in 4 years (doesn't apply to Seattle) doesn't stop it from getting even better - how about the best time in 6, 8, or 10 years? I can wait.