BiggerPockets

Right now could not be a better time to buy a home! The primary difference is right now in the state of Colorado we are not " down" we are just slower than the last 5 years that have been historically high! It's really all the " bad press" that you hear daily which suggests things are bad. If I told you several times a day that you look sick - and I continued to tell you that day after day - eventually you would start to actually feel sick!

What's going on in Colorado real estate right now is just simply symptoms of the above. Most of the issues are not reality based for our regions true statistics. Based on 10 year averages we are just slightly behind the curve for average amounts of sales. With interest rates still at 30-40 year historic lows, buying a home right now is a great deal. You will be able to take advantage of the folks feeling " sick" and who will be happy to " sell with out much of a challenge to your offer - since they have accepted that things are bad! Investors should be scooping up all these cheap houses on the market.

The final and most important reason to buy now is - prices have been flat for several years in our area - if you buy now, you will be in a position to ride the real estate wave back up - instead of waiting until you read " good things" in the media reports again - by then it will be too late to capture a great equity position in the near future by purchasing a home right now!

I think real money is to be maid in buying houses cheap right now or investing with a smaller builder on a specific project.

Originally posted by "Struben"

Investors should be scooping up all these cheap houses on the market.

Where in Colorado are you finding houses " on the market" that will cash flow or is your advice based solely on appreciation speculation?

Do you have an MLS number or three that you can point to?

The bottom is not yet in sight. But if you can buy at 50 cents on the dollar go for it. Just be aware that a year from now that deal might represent 60 cents on the dollar....

the bottom is here in our area in west michigan..

How do you know the bottom has arrived? I'm not picking on you, I'm honestly curious on how you are making that determination for your market.

For the record, I know next to nothing about the Michigan market.

I just did some research on median income vs median home prices. From 1968 til 1995, the median home price was about 2.7 times median income. In 2005, the median home price was 4.85 times median income. Using the historic data which are based on sound lending practices, the median home price right now should be about $135k. The actual median price right now is $206k. Given the fact that lenders have gotten back most of their sanity, prices will be falling for quite some time now. Thinking that " we've hit bottom" based on intuition, or ouija boards or what your Aunt Martha's cousin's realtor said is probably not a great idea.

I'll be honest. I have no clue when the bottom will hit. The bottom could be now (which I doubt) or three years from now.

All I know that I am going to buy and hold and buy and hold, while building cash flow. I'll change gears when it makes sense to do so, in due time.

I'm seeing prices no longer dropping, inventories are being reduced, time on market is being reduced, the number of escrows closing each month is starting to increase.

To me, all these things indicate that we've reached the bottom of the market in my town. We're reached the point where retail buyers think they are getting a good deal and are happy to pay the price.

All of which doesn't mean the market has turned the corner and started back up. We maight languish at this level for a while, or this might be the new reality and the new price point.

It will be a very long time before we see prices go up again in such a crazy manner. It may never happen again. In act, I hope the banks have learned thier lesson and will never again be giving away money like they did the past couple of years.

If banks behave in a sensible manner, the real estate market can return to more normal behavior and prices will return to an orderly increase, based upon increased demand from a growing population.

Wild speculation has damaged the real estate business, and that speculation was fueled by too much easy money.

I agree that we have more room to fall. Comodities will not be getting any cheaper and people will not be able to afford many things including their homes with the trend being what it has been the last 2 years.

rdinvestors

I see double digit inflation in our futures. If that is the case, it makes sense to buy just about anything durable, especially real estate.

Originally posted by Mike Seluk

I'm with ya. ^^^ The hype around here lately is all about how sales are starting to pick up.

I mean, I know things took a dump, but stuff is still pretty expensive. The median price for a SFH here is still 200k. Getting something to cashflow...no way. A lot of people are losing jobs, we're out of season, gas and food are getting more expensive everyday...I don't know if your average household around here can swing something like that right now.

Bottom? Maybe. Recovery? I have a hard time believing that, though it IS a good time to buy if you're stable.

Another thing I wonder about is who is buying the houses here. We're still a vacation/retirement destination, so there are eyes from all over the US and globe on this market. I suspect that SOMEWHERE, someone has money to spend, and while it still might be pricey for locals, others see a big sign that says, " 30% OFF!!"

Mike
Go to www.leeclerk.org check the last 2 days of deeds. Open the deed and look at the address of the person taking title. Our market has levels in it. At a cetain price point they are local, above that they are north and west of PA .

Sale volume drives prices down until the inventory declines( on this side of the cycle). Go to the www.swflreia.com homepage, I have some market studys there, that will shed some more light.

Do not buy Neg. Cash flow right now. Starting to see Positive cash flow at my offering numbers.

What is bottom? I do not have a clue. I think bottom is when the prices stop decling, most link that to appreciation.

Locally, for ever 2 deeds we transfer at the courthouse steps, they sell one out of the MLS. Pending sales numbers while are up over last year, are trending down.............
This is the time for the ditch within the valley.
If you have some money take a shot in Sept