Comments on: Home Prices Are Going Down, But We’re Still Not Buying

By: AndyS

AndyS — Wed, 23 Apr 2008 18:41:23 +0000

Great post as usual. I am in a similar quandry to you though for different reasons. I am writing a post on this topic soon and my research shows that as rent prices rise, housing will start to look like a better option. This is why we have cycles I guess and eventually the lure of home ownership and a stable economy will revive our sagging property markets.

By: Why Renting is Right for Us Right Now

Why Renting is Right for Us Right Now — Sat, 19 Apr 2008 03:28:34 +0000

[...] (and an update: Home Prices Are Falling, But We’re Still Not Buying) [...]

By: Friday Link Love - Surprise Earthquake Edition | One Caveman's Financial Journey

Fri, 18 Apr 2008 14:40:30 +0000

[...] Mrs. Micah knows what she wants and she decided that now is not the right time for them to buy a house. [...]

By: The Friday Gathering For 4/18/2008

The Friday Gathering For 4/18/2008 — Fri, 18 Apr 2008 10:26:37 +0000

[...] Home Prices Are Going Down, But We’re Still Not Buying – Even though it’s a great time to buy, Mrs. Micah is holding off. Read her article to find out why…her reasons are solid. [...]

By: thebaglady

thebaglady — Thu, 17 Apr 2008 20:43:43 +0000

AMEN! The hubby and I can afford a house, but we just really don’t want to because the cost of owning a house is much greater than renting. Additionally, we’re not sure how long we will stay here in the SF Bay Area, either. We both agree that this is a horrible place to raise kids so we may move, too.

By: Mrs. Nathan

Mrs. Nathan — Wed, 16 Apr 2008 13:14:28 +0000

Totally with you on this. 283746574892873465748932 of my friends are buying houses now and I do get a little jealous, but then I think about all the things I am saving myself from by not buying too early. We won’t have to worry about scrambling for monthly payments, fighting over money (which we inevitably would), cleaning a huge house (cleaning an apartment is enough work for now!) and we have the freedom to pick up and go on vacation or live abroad if we choose to. We don’t have to feel pressured to stay in the same jobs if we hate them, or feel pressured to always be on the look out for better-paying employment if we like our low-paying school jobs.

(plus I’m secretly glad that you all not buying a house might mean that you could come back and live near us!)

By: Frugal Trenches

Frugal Trenches — Wed, 16 Apr 2008 12:43:08 +0000

I feel the same, it will be a few years before I buy. I was watching a financial program last night and they said that those that will do well out of this tough economic time are those who are able to save a deposit and buy when houses hit an all time low. I’m working very hard to try to build about a $50K downpayment (I live in the UK) so that in 2011 or 2012 I can puchase a home – albeit a small one

Also like Dad said, buying and selling is very expensive!

By: Money Blue Book

Money Blue Book — Wed, 16 Apr 2008 02:22:50 +0000

Mrs. Micah,

*High five* !

I’m with you on this…I’ve been a renter for years now and love it. It’s afforded me the chance to live in many places and not have to feel tied down to one location. Buying a house is important to long term wealth but only when the time is right. This market still has a long ways to tank…I can see it by the number of desperate condo sellers in my newly leased condo that I’m renting. The number of those real estate agent key pad locks hanging on our front building gate seem to increase every day.

By: Dad

Dad — Wed, 16 Apr 2008 02:03:23 +0000

All of your reasons and the ones in previous comments are very good ones. One thing you hinted out but which hasn’t been said yet is the cost of buying and selling. My father years ago gave me a rule of thumb that if you are in a house less than two years, the cost of buying and selling will eat up any principle you gain. While his numbers may need revising these days, the point is still valid. You spend at least several thousands of dollars in buying a house and you don’t get it back in the short term. There is the realtor’s fee, the transfer tax, the cost of getting the property surveyed, the cost of searching the title to be sure it is clear, and the cost of title insurance. There is also a cost for an attorney to close the deal for you. When you think you are going to stay in an area for a while, you take the chance that you will pay off enough so that the principle gain will cover these costs. But in the short term, renting is financially safer.

By: Funny about Money

Funny about Money — Wed, 16 Apr 2008 00:08:03 +0000

You are so smart!

The first few years of an academic’s career are volatile. Micah may find himself (and you) going from job to job over the next five years or so. You’ll be so much better off to rent, pay off that debt, and save up a few shekels than you would be to tie yourself down with a piece of real estate you may not be able to unload on short notice.

Hang on to your mobility and freedom for a while longer! You’ll find your place…but take your time.