If you have the cash and are looking for a house to live in (as opposed to a house to buy, live in 6 months and flip to a greater fool) this is not a bad time to shop around. I suspect that before the various panics of the day/week/month are over, the general housing market will take an across the board hit of an additional 10-20% in some areas.
But the fact remains, if you are cash flush (as opposed to flushing your cash) and would like to be home owner now is not the worst time to start looking around because there are some bottom fishing opportunities around in a lot of areas in this country.
The biggest hold up in the housing market for a lot of not dumb people is that with MERS, fraud, foreclosure bullshit and the total destruction of a 200 year+ system of unimpeachable land ownership documentation, can you really be sure that the house you buy has a clear title??? This would slow me down a bit before closing.
But there are bargains out there and in some areas, (like N.Dakota) flippable opportunities but not so many of those. If you want a cave to live in and need something a bit bigger or in a better location that you intend to buy and live in indefinitely to long term, it’s time to put the bait on the outrigger and go bottom fishing.
But, to do it, you’d best be financially independent, job secure and sufficient money in the bank to pay cash for what you want to buy.
Very little can go wrong cause you trouble if you are debt free. Ever since I build our first home out of savings in 1980 (a homestead on a beautiful ten acres in Idaho that I eventually sold for three times what it cost (discounting labor – sorry you can’t count that as an owner builder), we have built 3 more homes this way and have never been $1 in debt again. I will die before I go into debt to anyone for anything and that’s a fact.
So, if you are in a position to pay for a house out of cash flow or savings and build it yourself, there is absolutely no possible way to loose money on it. If you buy a ready build (preferably a fixer upper in a great community) house with cash, you’re in a position to drive the best bargain and if house prices drop another 10-20% and you plan to live in it for 5-10 years, there’s no way you’re not going to be far better off at the end of that 5-10 years than you were at the start. Specially with a fixer upper.
When my daughter and son-in-law first were assigned to Groton, CT when he joined the Navy, they wanted to buy a home. We advised them to search the absolute best neighborhoods for the most absolute run down rental home they could find. They did, bought it at a fraction of what the other homes in the community were selling for, lived in it 4 years and my son-in-law spent his evenings and weekends (not all but most) replacing fixtures, painting, landscaping and finishing off the basement. When they were transferred to Pearl Harbor, they sold the house to the highest bidder (yes – the place was so pretty and fixed up it started a bidding war between 3 different couples) at almost 3 times what they bought it for. They sent up on a cruise as a “thank you” for the guidance and until my son in laws death last year (far too young), the experience of fixing up that house allowed him to set up “Purpose Built Construction” and while they spent 20 years in the Navy, he always had a home business that almost doubled his salary from the Navy through the years and allowed them finally to purchase a 1765 Colonial farm house they converted to a thriving B&B. All because, after that first home, they had no debt for housing sucking out money and interest from their income..
I’d spend Summers – when I could – helping restore that Colonial and what a blast…
So don’t turn a dead eye on the housing market.. Just use the housing bubble “pop” to allow you to do what you want to do with it!
I don’t know where it came from. I reported, you decide. They showed a bunch of people being bussed around to look at houses, which I assume were flippers, but commented that the supply was getting slim. If supply/demand can explain the price of oil/gas, I would imagine it could explain housing in my area. No?