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Should You Sell Before the Housing Bubble Pops
For the past several years housing prices have risen dramatically. With interest rates continuously moving up, and more and more people being priced out of the market, all signs point to an imminent housing market correction. So should you sell your home now before prices drop or should you stick it out and see what happens? It really depends on your individual situation. Let's face it, we all need a place to live and the world and United States population continues to grow. Any correction in the housing market will inevitably be short lived, relatively speaking. Historically it is not uncommon to see house prices drop 10-20% during a correction cycle and for these cycles to last several years. Inevitably, however, the housing market recovers and prices continue to rise over the long run. Before a homeowner decides to sell out to beat the housing market, he or she should first decide what their 5 and 10 year plans are and what their home needs will be. If the plan is to stay in the same community and that the current home will meet their long term needs, e.g. enough bedrooms for a growing young family, then there should be no real reason to sell out. Unless of course your feeling lucky and want to gamble. However, if you sell out too early you may find yourself priced out of a new home and stuck in an apartment for much longer than you planned. As most financial investors will advise, it is not wise to time the market. Instead invest on a regular basis that suits your long term financial goals. Your home will probably be your biggest investment, so as with other financial investments, attempting to time the market is ill-advised. On the other hand, if your medium or long range plan includes moving to another community and/or requiring a change in housing needs then it may be wise to take advantage of a sellers market. For example, if the children have all grown up and left the nest and you have been contemplating downsizing it probably is wise to take advantage of a sellers market. Whatever the market conditions are, when deciding to buy or sell a house, first evaluate your own specific goals and plans, and then assess the market conditions. If the current housing market condition is favorable with your goals, then certainly take advantage of it. If it is not, then reassess your plans and see if your timeline can be stretched out to await better market conditions. If they can not, then indeed, you may need to make a less than favorable housing decision to meet you longer term goals. Me_Donovan@comcast.net Over the past 20+ years Mr. Donovan has been involved with building homes and additions to homes. His projects have included: building a vacation home, building additions and garages on to existing homes, and finishing unfinished homes. Mr. Donovan's formal education and profession have been as an Electrical Engineer and Marketing Manager.
MORE RESOURCES: Also: David W. Higgins, David Bohnett and more. Reality TV star and singer Heidi Montag has been hiding out by the beach this summer at a Malibu place she rented for $25,000 a month, according to the Multiple Listing Service. But she moved on in late August, and the gated contemporary is back on the market at $5.5 million. A Long Beach couple struggling with mortgage payments find out their home's been auctioned off by Wells Fargo when the new owner's representative shows up on their doorstep. Mike and Ellen Kahara knew times were tough. They'd run up about $30,000 in debt on their credit cards and had fallen about $8,000 behind on their mortgage payments. The 1960s Buff & Hensman-designed Wong House has a pool, a walled garden and downtown and ocean views. It seems as though actress Scarlett Johansson had no sooner sold her old place in the Hollywood Hills than she and her husband, actor Ryan Reynolds, closed on a house in Los Feliz for $2.9 million. Completed a few years ago, a Normandy-style estate was built to look a century old. Glen and Linda Keane felt guilty about tearing down the O'Melveny family home. After all, John O'Melveny was part of a group of Los Angeles businessmen who formed Lake Arrowhead Co. in the 1920s and oversaw the lake's development into a popular resort destination. The mortgage giant quietly launches the HomePath program, which offers subprime-era terms for buyers: minimal down payments, no appraisals, no mortgage insurance and lower minimum credit scores. If you're a buyer with little cash or a small-scale investor looking for a deal on a foreclosed house, a little-publicized national lending program could be just what you need this fall. How some of our previously featured properties have fared in the sales market. Buff & Hensman-designed beach house Lenders lose an estimated $310 million annually in undervalued short-sale transactions, according to a study released in August.
Question: I am fed up with my homeowners association and successive boards for sabotaging owner requests for records and refusing to fix maintenance problems in common areas that directly affect individual units. I believe I have no other choice than to sue the association and the boards. What are the steps I have to take?
Keeping tenant out over concerns of illegal activities may be viewed as a 'constructive eviction.' Such moves as changing the locks to prevent access can bring significant penalties. Question: I own a couple of houses that I rent out for extra income. Unfortunately, they are not in the best part of our town. I have a tenant living in one of them who may be dealing drugs or doing something else illegal because the police have arrested him several times. Every time he is arrested he makes bail and returns to the house in a day or so. Even though he pays the rent on time, I realize that I can't continue to allow him to live in my house. My plan is to change the locks the next time he is arrested, so he can't come back into the house. I know that I need to protect his property inside the house if I do this, but my plan is to move his belongings into a storage locker. I can't afford a lawyer to file an eviction case, so this is my only alternative. Will I be OK if I do this? July's increase from June in the National Assn. of Realtors' gauge for previously owned residences follows two straight months of declines and a report that sales of such homes dived 27.2%. An index of home purchase contracts for previously owned dwellings unexpectedly increased 5.2% in July over June, the National Assn. of Realtors said Thursday, a modest note of good news for the U.S. housing market. |
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