Originally Posted by skibbs
Not true at all, rates are very good right now. ~6% for a 30 year fixed and ~5.5% for a 5/1 ARM. Now is an excellent time to buy with lots of inventory and lots of eager sellers. Pending sales are up in this area and new inventory is coming on at a slower rate. Things are looking up. You can't time the real estate market month-by-month, that's silly. If you're looking for a home for yourself, finding a home that you truly like and can see yourself living in for a few years is more important than hoping the price drops another 2% before someone else buys it. Since he is looking for an investment property, it's even simpler - rents are increasing a lot in the Seattle area and vacancies are low. There aren't many new apartment complexes being built now which indicates that it's a good time to purchase rental properties. If you can purchase a rental home and and charge somewhat close to what the mortgage would cost you, then you'll likely turn it into a profitable asset in a few years and be able to supplement your income for a few decades during which time you'll also enjoy the appreciation in the home price and the mortgage paydown. I'm also looking for rental properties in the area at the moment.
From just July of this year to September houses in King County have dropped over an average of $40k in value and is still in a downward trend.
Rumors are already flying around today about another rate cut.
All these factors just make it too damn volatile to invest in any homes right now.
Sure you can go ahead and buy a rental property right now, but what if the average price of homes drop another $40k in King County? Thats another $40k that you don't have to finance or about $87k (6%) after 30 years! That's not including potential rate drops that might happen in these next couple of months.
The best play right now is to WAIT.