Is It a Good Time to Buy a Home?

Question

Dolly Lenz explains potential pitfalls of buying a home in foreclosure.
[AD LINK REMOVED]

Jon Holdman · Answer

How can you expect someone in this position to do anything else?  His organization represents people who have a vested interest in real estate transactions.  Not real estate, transactions.  If people don't buy and sell, they don't make money.

Chris Martin · Answer

Sorry, I just can't resist! Let's look at other NAR prognosticators. David Lereah (former president of the National Association of Realtors) put out a few books:

2000 - The Rules for Growing Rich Making Money in the New Information Economy
2005 - Are You Missing the Real Estate Boom? The Boom Will Not Bust and Why Property Values Will Continue to Climb Through the End of the Decade - And How to Profit From Them
2006 - Why the Real Estate Boom Will Not Bust And How You Can Profit from It: How to Build Wealth in Today's Expanding Real Estate Market

No man, I am not making this up! See also http://en.wikipedia.org/wiki/David_Lereah

Yes, the stock market collapsed, and internet stocks in particular, in 2001. Rules for Growing Rich from Amazon.. 30 used from $0.01. Are You Missing the Real Estate Boom? Check out Amazon. 58 used from $0.01.

From Median Home Prices Fall First Time in 11 Years in 2006: According to The New York Times:

Chris Martin · Answer

google "is-it-a-good-time-to-buy-a-home" with quotes to get "About 1,680,000 results". Honestly I've never heard a Residential Real Estate Agent ever say it was a bad time to buy.

http://realestaterecord.blogspot.com/2007/11/dick-gaylord.html, says:

2007-11-04: Time to buy? Depends on whom you ask
"I'm not seeing the market fall apart. Are we having a correction? Absolutely," said Long Beach broker Dick Gaylord, who becomes the 2008 NAR president next month. "I think for most buyers, this is a great time. The question is, are you buying right?"

What an idiot. And he was the NAR president. And people blame the housing crisis on the banks!

Chris Martin · Answer

Jon,I understand your comment. Note that the first book in the list was about the stock market....

A correction on my post... apparently Mr Lereah was Chief Economist not president of NAR. Quote from the Chicago Tribune, Sep 10, 2006, "David Lereah has lost credibility because of his irresponsible cheerleading." Ever see the movie Enron: The Smartest Guys in the Room? Ken Lay... Jeff Skilling... Mr Lereah... all drinking the same cool-aid. A couple great quotes in the Enron movie... from an employee to Ken Lay when he stepped in after Skilling left... "I would like to know if you are on crack". (also Youtube link for the 'raw' Enron meeting) Indeed, when you prognosticate sometimes you miss, even when you are the supposed expert in the field. But missing every time just before major market fluctuations? I guess this is why the word 'former' was invented.

I don't think Lereah is like the Enron guys other than that they cheerlead right up to the collapse... and then actually after collapse is painfully obvious... they just keep going. Sad commentary on our leadership in some major US organizations these days....

Jackie Patterson · Answer

This is a very general question, and there is no overall answer.  What is a good time for me to buy a home, may not be the right time for someone else.  It also depends on the local market which varies widely across the US.  Finally, it always comes down to the actual home and how it is priced.

Is It a Good Time to Buy a Home?

Most Popular Reply