Adams Myth tells you when to buy that house.
We’re getting a regular stream of questions for our redoubtable economist, Adams Myth. Keep posting your questions in Comments.
Photo: Maybe you should rethink this house. The Arpel residence in Jacques Tati’s Mon Oncle.
Question: My fiance and I have decided to buy a house. We are still in the process of completing the down payment. Is it a good idea to buy a house now?
Adams Myth: If a generic new house from a developer, take your time. There is plenty of supply and the deals can only get better. If an old house with singular characteristics that particularly suit your personality, then go for it. Think scarcity value.
Q. Is it a good time to buy a condo? If it isn’t yet, what are the signs I should look out for?
A.M. Same principle as in the reply to the question about houses. There are too many condos coming into the market this year and next, at a time when demand is slowing. Take your time.
Q. If we stop buying new cars, will the dealers be forced to peddle them to us at ridiculously low prices just to make a sale? For instance, when gas prices reached almost 4 dollars a gallon in the US, everybody stopped using gas-guzzling SUVs, the demand for gas dropped, Arab oil producers got scared and re-flooded the market with oil, and now we’re back to 35 to 36 per liter here. I wish the geniuses at Honda, Toyota and Mitsubishi would take this cue. If they do, I just might be lucky enough to insert a brand new Mitsu Evo X in my garage, beside my aging Corolla.
A.M. You could be right. Toyota is not only reporting its first loss in history, but is halting production in all factories for eleven days. Too much inventory.
Adams Myth’s next post will appear on Monday. Today you’re asking him about houses and cars. Next you’ll be asking him to vet your wedding plans/prospective spouses. Our unflinching economist will not refuse a challenge.
Answers to questions you might be asking, unless you wandered onto this site purely by accident >>>
