I personally live in Downey and I can say that I know each part of this city. If you live in Downey you probably know already that in Downey the prices are not going down that much. You can still find good deals as this was my work over this last weekend but the prices compared with other cities are still up. It all depends on what area are you looking for in Los Angeles? I can get into details for each city that I work and show you the sales comparable for the last year. It's true you can see a lot of properties for sale but it doesn't mean that the banks are going to give those away for nothing. Plus, I can't say how the interest rates would be by next year and your friends can't guarantee you this either. If the prices are going down another 10% lets say for a $300,000 current price right now it will bring a price reduction of $30,000. I can tell you right now as rough numbers it will not change dramatically the monthly payment especially that you should take in consideration at least a slight rate increase.
If you go FHA, they just changes the guidelines last month by increasing the monthly mortgage insurance. Since October 2010 the monthly mortgage insurance for FHA went from 0.55 to 1.15. You can say that this made a difference into some borrowers monthly payments.
If you have any other questions related to this area let me know and I'll answer.
Warren Buffets, Billion dollar investor, says this about timing the market " Be fearful when others are greedy and greedy when others are fearful"
What I want to say most of my other friend agents already explained to you.
For me, the most important for you right now is looking for a nice house that both you like and feel happy to buy it.
No one will even know exactly how the price is tomorrow how can your friend know the price will go down until next year (365 days in advance).
When you buy a house, feel happy with it, make it become a beautiful sweet home, you gain more than lost!!!!!
I hoe that you can find a nice home to buy it asap!!!!!
I believe that actions speak louder than words in most cases. And even though I am a mortgage professional, I am also a homeowner. My wife and I purchased a "move up" property last summer and we couldn't be happier. We're not concerned if prices go down --- this will be a family home and we like the community as well.
If you're an investor, that's a different story. Then you need to be very sensitive to the price you're paying for any asset. But if you're like the majority, you are looking to buy because you want to build your life/family, be part of a community and know the benefits of home ownership. These are intangibles when you ask for advice, but they are far from insignifcant.
If the timing is good for you, on paper it is good for most. Inventory is plentiful, sellers are motivated, rates are great and you can still get a great loan with approx. 3% down. We may never see such an convergence of factors again in our lifetimes.
Best of luck and let me know if I can help in any way!
Here's what I tell anyone that asks me "Is it a good time to buy". I in return ask them, "Is it a good time to buy for you". Only you can tell us if this is the right time for you, it's pretty simple. You've done the first step by getting pre-approved, my guess is your lender has told you how much you can afford and what kind of loan options you can look at.
No one can tell you what the prices are going to be tomorrow, what the interest rates are going to be, whether or not loan qualifications are going to get more demanding, or having to put more money down. The sure thing is what you know today. If you are financially and emotionally ready and capable, go for it.
Best of luck to you.
Only a qualified financial planner, taking into account your complete financial picture, can advise you on this.
You always play the where will rates be game as well. Good luck.
People are always full of good advice, and NO ONE knows where the market will go. Since we don't work in your area, I would take some time and find a broker there who is experienced, knowledgeable, available, and honorable enough to be looking out for your interests, especially when that means advising you against buying.
Ask for referrals and interview until you find the right one.
But if the house payment is a lot more than rent, I do not think it is worth it to buy. Because you also have to tie up a down payment when you buy & you have a lot of property repair and maintenance costs you don't have when you rent.
On a short-term front employment picture is gradually improving with downticks in unemployment rate monthly and jobless claims weekly. Manufacturing activity is picking up. There is a stream of legislation aimed at loan modifications and other ways of helping homeowners in need in lieu of foreclosure. If you can find a home you really like with payments comparable to what you are paying in rent and you are comfortable with the state of your employment situation - there is no need to put too much stock into what will happen next year. Americans spend 7 years on average in their homes anyway.
No one can know for sure what homes prices will do int he future.
If you are thinking of buying a home make your decision on CURRENT market conditions. If you locate a home in an area you desire and it is in your price range, go for it.
You should also plan on keeping the home as a long term investment. If you want to flip a home, I would be cautious. Current market conditions are not ripe for flipping.
Best of luck to you.
Kawain Payne, Realtor
Lets say that house prices were to decrease what would happen is that a rush of buyers will come in to the market to buy and the home prices will rise again: you will be in the same position, but it will be a year later.
Please let me know if I can help you search for a house with a monthly payment that you are comfortable with. I specialize in the Downey area, our office is located in Old River School and Firestone: Home Central Realty. With us, we pay for your closing costs or 3% of your downpayment, you decide. You are more than welcome to come in to our office. You can reach me at (626) 476-4822, Vanessa@homecentralrealty.net.
You need to purchase after the bubble pops not while itâ€™s being inflated. I work the Downey area and I believe that Downey has bottomed and prices will be low and increase a little within the next few years, but they will come back up again. Of course, not to the levels that it did in 2006/2007 and no one knows at what rate homes will appreciate but prices have no where to go but up, but thatâ€™s just the real estate cycle. The danger of waiting is your interest rate can go up and so can the cost of getting a loan: loan points, title insurance, homeowner insurance, private mortgage insurance, escrow fees.
Buying a house is more than just a financial decision, itâ€™s a place where you are going to build a home for your family. If you find that right place at the right price, what does it matter if prices fluctuate up or down, if you are planning on staying for at least 5 years, youâ€™ll be ok. If you are buy to flip and try to make a quick profit, then I say you might be treading in dangerous waters. If you are planning on flipping for a profit, I wouldnâ€™t be able to help you but if you want to buy a â€œhomeâ€ then I can most certainly help you. Please call me.
To answer your question: yes this is a great time to buy because prices are very low, there are plenty of inventory and interest rates are also at a all time low.
I would love to discuss these options with you more in details and also the opportunity to earn your business.
Realtor, DRE# 01891274
Century 21 All Moves
FREE Monthly Newsletter: http://newsletter.davidnewhome.com
Now is a great time to buy while interest rates are below 5 % and selections in every price range are plentiful. There is nothing better than owning vs renting ,it is a really good feeling to be a new homeowner..I know that none of my clients have regretted it & are thankful that they took advantage of this homebuying window of opportunity, so I would say don't listen to friends & do what you feel in your heart is right for you!
No one--much less your friends--really knows what'll happen to real estate prices. And there are pressures in both directions. If you're preapproved, you have the money, and you're planning on living in the property for 5-7 years or more, you might as well buy now. Interest rates likely are going to go up. Prices may or may not go down next year. But let's assume they do go down 5% next year. Then--just playing games--let's say they're flat for a year. Then they rise 2% a year for the next 5 years. You'd be ahead of the game. And even if you believe your friends that prices will drop, a drop followed by a slow rise is certainly possible.
So, if you're ready to buy and plan on living in the property for 5-7 years, go ahead and buy.
Hope that helps.
All the best,