and we got high...,
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Why is the FDIC's Sheila Bair smoking crack?...,
bargain hunting, or bargainier waiting:
Dean Baker offers the same seven year old advice, but I like the new phrasing of the tune:
The extraordinary rates of price decline in recent months indicate the enormous gains to potential homebuyers from waiting to purchase a home. For example, in Phoenix, a family that was considering buying a home at the cutoff to the
bottom tier ($129,600) would have saved themselves over $20,000 by putting off their purchase for three months. In San Francisco, the savings from putting off a purchase for three months would have been more than $30,000. In
Washington, D.C., the savings from waiting three months would have been over $40,000.
The savings from waiting to buy dwarf the $8,000 new homebuyer credit. For this reason, many potential homebuyers who are not worried about losing their jobs and have the ability to make a down payment may still opt to wait for
evidence that the housing market has hit a bottom.
In this economy, the best way to accumulate wealth is to put off buying a home. It is unfortunate that the government, or non-profits that ostensibly promote "asset-building," are not counseling moderate-income, potential homebuyers to delay their purchases in these collapsing bubble markets.
I had been thinking of shopping around this year, but Chicago rents are dropping so hard that craiglist's apartment porn has stripped my attention from the zillow condo porn.
:: posted by buermann @ 2009-04-08 08:31:09 CST |