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Recession: A great time to buy!

By Glenn Roberts Jr., Wednesday, April 16, 2008.
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While housing sales are slumping nationally, the monthly Reuters/Zogby Index released today found that most of a group of 1,049 likely voters believe it is a good time to buy a home. The survey, which was conducted April 10-12 and has a margin of error of plus or minus 3.1 percentage points, found that 53.8 percent of participants believe it is a good buying opportunity, while 41.6 percent said it is not a good time to buy and the remainder were unsure, Reuters reported. The error margin and 4.6 percent "unsure" respondents, though, make this somewhat of a tossup.

The overall Reuters/Zogby Index climbed to 95.5 percent this month after hitting a low of 87.7 percent in March. This index is based on responses to 10 poll questions about the state of the nation and the economy. This index was launched in August 2007, and the baseline rating established for that month was 100.

About 71 percent of index participants said they believe the U.S. economy is now in a recession, down from 74 percent in last month's index. The National Association of Home Builders' chief economist this week threw his hat into the recession ring, declaring in his latest forecast that the nation is already in a recession and that he expects this "mild recession" to fade away at the close of the second quarter.

About 81 percent of survey participants view U.S. economic policy as fair or poor, and about 53 percent rate their personal financial situation as excellent or good. About two-thirds of survey participants said the nation is on the wrong track, down from 73 percent in March -- about 83 percent of Democrats expressed pessimistic views in this area, while 48 percent of Republicans said the nation is going the wrong way.

Is Congress doing its job? About 16 percent of survey participants gave positive marks to Congress, compared to 13 percent in last month's survey.

On the heels of the poll results, online real estate advertising site ForSaleByOwner.com sent out a statement today about the importance of consumer confidence. "The missing ingredient to recovery within the housing market has been consumer confidence," a company spokesman said, adding that the survey results "are a great sign of growing consumer confidence and awareness that market conditions have provided unique buying opportunities."

But can consumer confidence override a recession (if we are in fact in one)? And do polls speak louder than pocketbooks? The U.S. Census Bureau and Housing and Urban Development Department today reported that housing starts and new-home building-permit authorizations hit the lowest rate since 1991, and single-family starts and permits have been in decline for 12 straight months. NAHB is forecasting a 30 percent decline this year in housing starts, and the National Association of Realtors has forecast a 4.7 percent dip in sales of resale homes compared to 2007, and a 25.7 percent drop in new single-family home sales.

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Submitted by Dr. Sally Witt on April 21, 2008 - 7:23am.

We have seen a surge in buyer interest, new homeowners as well as investors. My family is in Real Estate, and I am a real estate coach. I am in the greater Philadelphia area.

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Submitted by Andrew Himes on April 21, 2008 - 7:27am.

Interesting subject! Now IS the time to buy! Just think these 2 situations have never existed at the same time, low interest rates and a large supply of homes for sale. It has always been one and not the other. Take advantage of the opportunity to get a home for a great price and have the peace of mind of a low interest rate. Now is also a great time to SELL for "move up" buyers looking for a bigger house. Granted you may not be able to sell your smaller home for as much as you might like to but think that the person selling their larger house to you is experiencing the same market, possible effecting them even more. If all else is equal a 10% discount on your $200,000 home will net you a greater gain when you purchase a $400,000 home at that same 10% discount. Many people think about it as a loss on the sale of their current home without realizing the gain they get on the purchase of the larger home. Great time to buy, I say Absolutely!!!!

 
Submitted by Ki Gray on April 23, 2008 - 3:03pm.

I think now is a good time to buy. The problem is that with lenders not wanting to lend its difficult of a lot of people to get a loan these days.

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Submitted by Spencer Mason on December 5, 2008 - 7:37am.

With the 30-year fixed mortgage rate dipping to 5.2% this week, it is very good time to buy – if you are in a position to do so. First of all, you need a very strong credit score (650 or higher). Of course, lender requirements vary so shop around. Liquid assets are also important. You need cash for the down payment, at least 10% for most loans. You also have to be able to show documentation of income (usually in the form of a W-2).

Getting a loan is becoming easier than it was a couple months ago (residual effects of the financial bailout) however banks are still somewhat picky in who they will lend money to. For instance, buyers who are self-employed are regularly being turned away. Self-employed workers must use their tax returns to verify income to a lender, but the returns often downplay how much someone actually makes. This has been a problem for many self-employed borrowers across the country right now.

Locking in a loan today could save you a good deal of money in the long term. We haven’t seen rates this low in years. 2009 is around the corner and with factors in place for the housing market to rebound, it wouldn’t be surprising if you’d have to pay more for the same home a few months from now.

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Submitted by Leo Z on January 8, 2009 - 11:25pm.

The Consumer Electronics Show in Las Vegas is this week and I might need a payday loan to get there. On the other hand, I don’t think that will be the smartest move to make, at least for right now. The show, like the economy, is shrinking. And salespeople are looking to generate more than interest this year – they are looking to generate profit. I know I’m short on extra cash so it may be best to stay away. However, if you have somehow managed to stay ahead financially, with or without a payday loan, some of the items that will be featured this year might help keep you ahead. This year’s convention will spotlight items such as Netbooks, which are lightweight, low-cost, and energy-efficient. Amid the recession, this may be one of the best things to invest in. Although these energy-efficient technologies can help people save money, you’re going to have to spend some money first. So who knows? Maybe getting a payday loan for this event may not be such a bad idea.