Monday, October 25, 2010

DC real estate site warns consumers about buying low

Here’s a great little reference on housing prices that someone told me about at a movie (“Inside Job”) last night, on a site called “Patrick” (link here). The subtitle of the site is “What realtors won’t tell you”. (Yup, the orbit of the Earth is collapsing toward the Sun and “they” just aren’t telling us! Well, there is no “they”.)

Patrick makes a point that it’s bad to buy prices are high and interest rates are low. Why? Pretty obvious. Interest rates could rise again, helping homeowners become upsidedown.

He claims that renters win right now, and owners lose.

I got burned once, in Dallas, when I bought a two bedroom condo in 1984 for $39990, from Pulte. We even had a “39990 party” in January 1985 (Dallas winters actually can be bad sometimes). But housing crashed in Texas in the late 80s because oil prices fell, and eventually it was sold for just $30000.

Picture: From Science Fair on the Mall Sunday Oct. 24.

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