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David Crowe, chief economist at the National Association of Home Builders, a non-profit trade association, joined us for a live web chat Thursday to answer your questions about the housing market.
Here’s one of David’s answers to questions from the live chat. (See below for the full Q&A.)
Emily asked:
“Has there ever been a better time to buy a home? Seems with rates so low, it’s a great time.”
David Crowe replied:
“Emily - I think so, but I am an optimist. Seriously, home prices have probably bottomed in most markets (but as I noted earlier, that is universally true). Mortgage rates are not likely to go down much further and will eventually rise as the economy recovers. Home builders are hungry and while you will still have to pay a fair price, you may not get a better bargain than now before all the rest of the demand comes back.”
Here’s the full chat archive:
Leave a Comment:
As a pessimist I say this is a terrible time to buy a house. Maybe it's not as bad as during the peak in 2006, but still a terrible deal. Houses are way too expensive, just rent instead.
Remember what the NAR said in 2006 when houses were their most expensive? They said housing prices never go down! That's right, they said house prices never go down! Hahahahahahahah!
Correct. According to Real Estate Agents, the best time to give them a commission, uh, I mean, buy or sell is always right now.
"chief economist at the National Association of Home Builders,"
Gee, I wonder if the "chief economist" at the National Rifle Association will say its a great time to buy guns?
Thanks for lowering the journalistic bar yet again NBC. We know you write for liberals but this type of marketing-as-news has to insult even their small minds.
I saw this news presented in some of my real estate classes as well. Looks like it's a really good time to buy houses now before the demand soars again.
This piece of journalism is a paid info-commercial promotion by the real estate industry.
The real estate propagandists want consumers to buy housing, today, claiming shortage of housing inventory; prices has bottomed; and the low mortgage rate won't last much longer. Setting aside the sales pitch, the fact is that real estate prices will continue to decline from their peak bubble levels despite the best of Federal government efforts to prop-up prices during the last 4 years.
As lower real estate prices decimate their 'bottom line,' the real estate industry has hired Madison Avenue to brainwash consumers with the notion that the 'real estate's good time' is back. Unfortunately, history proves otherwise.
The 2007 housing bust will follow the examples of the bursting of the Tulip, SouthSea, Railroad, and the Dot-com bubble market. As in all of the previous bubble markets, there will be wishful Johnney-come-lately who believe the housing prices will recover and restore their lofty mania prices. History has shown this never happens, even for over 100 years. Instead, the collapsed housing prices will be below the average norm for some time.
Those who buy real estate today is setting up their own financial demise. Low mortgage rate has lulled consumers into paying higher prices as their buying decision is clouded by lower monthy payment rather than the true value of the house.
When the mortgage rate increase from the current historical low of 3.5% to the norm near 7.5%, housing prices will substantiall decline as fewer consumers will qualify for a mortgage. And once again, foreclosure will be rampant as many of today's home buyers find their home is 'up-side down.' As banks fail; mortgage modification revisited; and foreclosure and short-sale re-surface, the cycle of misery is repeated.
For the real estate consumer who must buy today, the remedy is not to consider 'Back up offer' homes, which is a nasty dirty strategy of real estate agents who want a bidding war.