“Not true. Anyone who has heard housing analysis but buys right now at peak prices thinking they are going to make money in the next couple of years is dumb or stupid. ”
It is worth noting that a friend of mine who I tried to steer to this site (I doubt he ever even made it over) just bought a house in 4S (I posted about this a week ago).
No matter how much I might try to sway his decision, he ended up buying and paid almost 100% of the asking price in spite of the fact that recent comps for larger houses in the same neighborhood were 60-80k lower than the list price.
He sent me this little gem:
“We stopped at 700K plus some seller credit cash. It all works out to a
favorable position for us and them that also keeps the comps good in the
neighborhood. When you buy your upgrade house, don’t try to be cheap,
because you also need to consider the comps in the neighborhood. If we had
gotten down to 680K, then all of the homes in the are would have gone down
too. That would have made our floor value much more unstable. As it is,
none of the homes have resold for an unfavorable equity position yet.”
Note that my friend is a smart guy (he actually IS a rocket scientist) but the gist of his argument here was “overpay for your house cause it keeps the comps up”.
Trust me, there’s plenty of suckers out there still….
