I bought in Antioch August 2008. Since then I have seen 6 foreclosures - on my side of the street! My home has depreciated 40k, and two houses in direct view of mine our now section 8 occupied. The school district for my development (Rivergate) is Brentwood/Oakley and there are no mello-roos taxes here - a major selling point. I did my research, no one could have told me that I would be living in a beautiful "hood" complete with cars on side lawns and daily police patrols. Just say no to Antioch. It's a slackers paradise. My neighbor pays $300 per month for 2800sq feet - this could turn out to be my biggest financial mistake ever.
It seems to make sense to wait it out. We are entering a time of significant economic uncertainty. Uncertainty can bring opportunity for those with liquidity and financial flexibility. It is frustrating to hear the counsel of real estate "pros" claiming higher interest rates or market bottoms. I would resist listening to any counsel from such "pros" except for after YOU decide where and when to buy they might provide some help in selecting an individual house.
It is true that no one can predict market bottoms - it is impossible to model buyer/seller/investor psychology. One can however examine income to price ratios - these should be somewhere near 3 times. In other words, look at the median income of an area, if it is $50,000 per year median house prices should be around $150,000. Other ratios such as median income to typical mortgage payments may make sense as well. All markets are driven by cash flows. They may deviate in the short run; in the long run cash flow drives prices.
Yes you should be concerned. Hold tight. DO NOT buy a home/car of take on any large obligations. Live as though you are a traveler, a nomad. Indeed, the worst is yet to come. 2010 will be difficult.
Is It A Good Time To Buy A Home? The simple answer is YES! It is still a good time to buy a home. With the help of the right agent, you can make this "good time" into a "great time" for you and your family. The news is full of stories about the housing crisis, homeowners losing their homes, and the overall bad state of the economy. Not all of this news, however, has to translate into dissuading you from buying a home. In fact, right now is a very good time, especially for some, to jump in and achieve the American dream of home ownership. As of late, the housing market is starting to look better. Read on for more information about why it is still a good time to buy a home.
First, the government is looking to help you. If you are a first time buyer (which, to the government, is defined as anyone who has not owned a home in the last three years), you are entitled to a maximum $8,000 tax credit. Additionally, interest rates are at all-time lows and the Federal government is taking steps to insure and make these loans available to more and more people.
Leverage. Leverage is defined basically as borrowing money to supplement existing funds for
investment. Imagine if you invested ten thousand dollars in stocks and those stocks earned ten percent, you would have earned one thousand dollars. But investing ten thousand dollars on a home, and having that home's value increase ten percent; effectively, you would have earned ten thousand dollars. Which sounds like a better investment to you?
Next, you have to live somewhere. And so does everyone else. According to nationwide statistics, approximately 800,000 new households are created each year in the United States alone. Each of these households will need housing, regardless of the state of the economy. This fact alone ENSURES the recovery of the housing market.
Cycles. The economy is a cycle, and like a cycle, what goes down must come back up. Once this happens, it will create INSTANT equity for you. That means you will have earned FREE money just by living in your home, which you are going to do regardless of where you live. Why not buy a home and earn free money in the process?
Mortgages. Many people think a mortgage is just like paying rent, right? WRONG! With the right fixed-rate mortgage, you are basically ensuring the same payment for thirty years. If you try to rent an apartment for thirty years, odds are that every year or so, your rent will be increased. That does not happen with mortgages.
Ownership. Owning a home is a GREAT accomplishment and it allows you to express yourself in the best way possible. You can decorate it any way you want, furnish it, paint it, and improve it and all the while you will be increasing its value and the value of your investment. Ownership also gives you and your family a sense of stability and a place to lay your roots.
These are only a FEW of the reasons why right now is a good time to buy a home. A qualified agent will be able to answer any questions you may have and also give you more reasons to consider investing in your next home!
Anyone who tells you any market in the USA has hit or is near the bottom is a liar and doing business with them is pure ignorance. If you decide to purchase property for any reason YOU MUST FIND YOURSELF AN HONEST AGENT TO WORK WITH!!!
There are many honest agents here at Trulia and outside Trulia so do not fall victim to those who would tell you anything to make a buck. THE MEDIA DOES NOT SAY THE MARKET IS FALLING, THE FACTS DO!!!
Best of luck and here's some antioch housing statistics...http://www.bhgrealestate.com/Views/Look/Default.aspx/?WT.srch=1
The present status of the real estate market is that of a "double edged sword." There are risks and yet, there are many fantastic deals to be had.
We feel the the bottom in some areas has been attained. The reality of the bottom will be determined by the "foreclosure" sales and the prices that come from these sales.
If you are considering buying to "flip," it probably is not a good time, however, if you are buying as a long term investment, planning on staying there for 8-10 years, this could be the ideal time to find yourself an opportunity.
The mistake you could make is to NOT explore your options by looking for the right deal, thus taking yourself out of the hunt. So find an agent and get started.......The fact remains, when this is passed, many people will be saying, "I should have bought when I had the opportunity."
Will you be one of them?
The "Eckler Team"
Michael Saunders & Company
I'm assuming that you are buying for the long term. Over time, the economy will get back to normal, inflation will get under control, people will find jobs and housing will again start to gain equity. when you buy when the market is down you will have the best chance of gaining equity quicker than those who wait until the market returns. Since there is no way to know when the bottom has been reached until months afterward, I wouldn't worry about timing for the bottom. If the home you want is a good value in today's market, if it is a good sound home (please have it inspected by a professional home inspector) then relax, buy it and enjoy!