From Realty Times 3/6/8

A portion of the article indicating some reporters are seeing things in a new light. Long ago I found when the media said the bottom was in on the stock markets they were already up 10% – 20%. Could it be the same will be found by those waiting for the media to tell them the bottom is in the housing market?

Some members of the financial press are beginning to suggest that a bottom is near, and that buyers should get out and start looking for bargains in homes.

Time Magazine ran a piece this week titled, "Ignore the Headlines!" by Dan Kadlec, where he notes that Fed rate cuts always "lift the economy eventually." He also makes the case that buying a home today will beat waiting another year even if home prices drop an additional 10 percent.

To buy a $218,900 home at 5.5 percent is $994.31 a month. To buy next year at $197,010 at 6 percent will cost $994.94.

The irony is that in the time Kadlec did his research and when the magazine came out, interest rates were already back over 6 percent, making his example all the more compelling.

The Motley Fool's Marko Djuranovic wrote on February 25th, 2008 that "the shape of the U.S. housing market is not nearly as bad as some analysts would have you believe." In his spirited defense of home prices as being far from overvalued, he points out that home sizes have increased 47 percent from 1973 (1,525 to 2,248 square feet), and that today's homes feature sturdier construction materials, more expensive siding, outdoor amenities, more complex wiring, sophisticated heating and cooling systems, and larger kitchens.

"And the moment that the supply of existing homes begins to shrink, potential first-time home buyers will wake up to the fact that between low interest rates and homes that sell at (or below) replacement cost, they can grab the deal of a lifetime," says Djuranovic.

As Kadlec points out, you just never know, but you may not save anything to wait, and you've "spent a year living someplace you'd rather not be."

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