To buy or not to buy????

[EastSider]

I have watched the eastside market for the past couple years hoping that the prices might drop. But, alas, I see no signs of a price drop on the eastside. Should I wait for some more time or take the plunge & buy a home?

Thanks in advance.

[downpayment]

Can't tell you what to do, but I would wait at least until 2008 before thinking of buying any real estate (just MHO). This market needs to equalize, and until then, I would put my down payment into a money market or international index fund to, if anything, just keep pace with inflation.

[FirstTimeBuyer]

Hi EastSider,

I am in the same boat or delimea rather. For me, the decision will come down to

1) my need for a home (ie: if you're getting married or having kids)
2) Whether or not the I can afford it.

I currently dont need a home but I would like to live in one ( I am tired of living in an apartment). But most of the homes within reasonable distance to MSFT are unaffordable for me (even with a ~80K Job at MSFT), so I've been holding out. I think whats puzzling for me is to see inventory going up, pending sales down, and only to medium home prices up YOY. I attribute this strange behavior to the rich buying more higher priced homes (maybe someone on this forum can give some input as to why this is happending on the EASTSIDE).

Going back to your question, if you can afford it and need a home, then you should buy one. Even if the market turns, you can live in it. But I wouldn't buy for the sake of speculating because homes are priced to perfection, leaving little or no room for the next homeowner for appreciation.

Whether or not the market will depend on the number of speculators on the market. On the east side (and without numeric proof), I dont see "too many" of these people. Most of the new home buyers I know on the east side are MSFTers who are moving up from renting because they've recently gotten married. And these home owners are not going to be selling their home at a loss because they'll just live in it regardless of what happens to the market.

Painfully watching on the side lines...

FirstTimeBuyer

[synthetik]

Why do you think you NEED a home? Is renting really that painful?

Why risk your financial future by buying at the PEAK?

[rolandovich]

This person appears to be facing a similar decision:

http://seattlepi.nwsource.com/opinion/3 ... son19.html

[T, V & Mr. B.]

Regarding the Median prices going up on the East side, despite inventories and lenght of time on the market, those are so misleading. IE.
If you have 50 homes sold at 249K and 50 homes sold at 2 Mil, your median is 250K. BUT if you have 49 homes sold at substantially less money at 220K 1 House a bit higher at 274K and 50 homes at 1 Mil which would be substnatially less as well, then your median actually rises to 275k.
So even the upper crust homes may be selling for less, and the majority of the lower homes selling for less, but your median would still rise. IN this scenario, it rose 10%.

Wehn I drive around on the East side on the weekend, I see more open houses than I have ever seen in my life. I have a cousin who is a realtor on that side..She would not consider the market strong at all.

[synthetik]

[dan]

[synthetik]

[Lake Hills Renter]

[EastSider]

[EastSider]

[Puget Sounder]

[synthetik]

[synthetik]