Monday, January 21, 2008

We’d like to purchase a house in Bucks County, PA.,%2Bpa%26gbv%3D2%26svnum%3D10%26hl%3Den

We’d fancy a house with 3-4 bedrooms, 2-1/2 baths, with a nice backyard (there is a reason we didn’t choose the city life, hello suburbs!), preferably a basement, and a garage. (BTW, I’m totally enjoying my brand new 2008 car, and he (yes, it’s a boy) needs a home too!) We want a quiet, woody location, far from trains, cars and fumes. I think it sounds pretty undemanding, well, apparently not. But then again, money talks, and our price range is not that promising. Although 300-400K sounds fairly respectful, or at least to me…
The other factor playing a huge role in our home buying process is the real estate market, which is going bananas right now. The good news is that the interest rate is going down, and there is some hope that the prices of the houses will go down in the next couple of months, too, a trend following the real estate market crisis with the unsecured mortgage loans and the subsequent foreclosures, happening all over the US.
Given the huge inventory of homes already for sale plus the ones likely to come into the market as more homeowners default on their mortgages and go into foreclosure, prices are forecast to tumble another 6 percent or so in 2008. It is doubtful that prices will rebound in a significant way until 2009 at the earliest.

The truth is that most houses in Bucks County have kept their listing prices unchanged. We shall see.

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