Home Buying in Foster City>Question Details

Jenni, Home Buyer in Foster City, CA

Are prices falling in Foster City? We are in a position to wait to buy.

Asked by Jenni, Foster City, CA Tue Jan 27, 2009

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Hi Jenni, yes the prices have come down a little. But compared to most markets Foster City has held it's value very well.

One of the reasons is because of the schools, and also the location.

My advice is to get pre-approved for a loan if you haven't already and starting looking at homes. It doesn't sound like you have to move, so you have the luxury to sit and be patient. But, with that said you should focus your attention to finding the "RIGHT Home"

With home values down and the cost of money at record lows, that makes it an awesome combination.

By the time buyers and agents figure out that the market has turned upwords, it will be too late to buy at the bottom.

Focus on finding the right home.

Cheers,

Dave Tap Tapper
Realtor
Cashin Company
http://www.Davidtapper.com
650-403-6252
Web Reference: http://www.Teamtapper.com
1 vote Thank Flag Link Tue Jan 27, 2009
Hi Jenni, I just want to reiterate that you need to look specifically at the targeted segment of properties that match your search criteria for the information to be meaningful. Generalized stats "cloud" the information that you should be looking at to be fully informed in your search. Generalized stats are easier to come by, but that doesn’t mean they should be used to make one of the most important financial decisions of your life.

Best, -Steve
0 votes Thank Flag Link Tue Jan 27, 2009
I specialize in the Foster City area. House value falls at least 10% compare to 2007. Of course nobody knows whether it hits the rock bottom or not, but if you are going to keep the house for a while, why wait? Taking into consideration the low interest rate, and the negotiation power that a buyer has right now, don't let this chance slip off your hands. You can contact a real estate agent who can run the statistics for you, and also let you have a real picture of what's happening in this specific area. Don't just rely on the news, it covers the whole nation or California and you cannot tell the situation for a specific city.
0 votes Thank Flag Link Tue Jan 27, 2009
Hi Jenni - I haven't run the statistics since October but as of that time the prices were coming down and I believe they have continued to do so. But, again, I'd need to run the numbers.

The question at this point seems to be when are we going to hit bottom. Really, the answer to that is nobody knows. We could have already done so. We'll know when we look back and see that the market has begun its ascension.

I read an article yesterday that indicated that the banks will be releasing a lot of property for sale in the coming months; and a many, many of those adjustable loans are set to actually adjust this year. There's not a sure way to know if those factors will affect Foster City or not.

I hope some of this was helpful, but the bottom line is that none of us really know what's going to happen.
0 votes Thank Flag Link Tue Jan 27, 2009
Hi Jenni,

A Comparative Market Analysis (CMA) gives you the best representation of market price/activity/trend direction - for the specific property details you search on. DO NOT rely on median and average-based statistics, these measures are meaningless for targeted selling/purchasing as they have no regard for any of the specifics you may be searching for and can be skewed by segments of market activity not matching your individual situation.

If you would like to provide me with the specifics of the property you are seeking I can perform a CMA for you to definitively determine the answer to your question.

Having said this, for the most part I'm suggesting my buyers hold their cash until the end of Q109 and then reassess the direction of the economy. I don’t see anything concrete indicating Q2 will be better. The resulting reduction in jobs will lead to less demand for housing and more distressed supply, FURTHER REDUCING PRICES.

Barring any successful government intervention, the end of 2011 is when the brunt of “questionable loans” is flushed from the financial system. By Jan of 2013 it’s all gone, but my sincere hope is housing appreciation occurs well before 2011 and with enough zest to allow some homeowners to refinance out of these final loans and into more affordable loans prior to the currently projected reset schedule (which can be viewed via the link in the next two paragraphs). While the predominate amount of foreclosures tied to “subprime” loan products has passed, we're not in the clear. This chart shows scheduled reset loan volumes for different loan categories:
http://docs.Steven-Anthony.com/Resets.pdf

As the chart shows, Subprime loans have pretty much run their course; however, Option/Alt-A/Unsecuritized ARMs are the next phase to provide a destabilizing affect. We have taken on some of the projected Option ARM pain earlier than is shown in the reset schedule. This is because Option ARMs have valuation based "triggers" that can cause resetting to occur sooner than originally planned (due to property devaluation and an owner's payment selection of a minimum or interest-only payment). The following chart shows how the resetting of these loans has shifted due to valuation based resetting and I have also provided an explanation.
http://docs.Steven-Anthony.com/OptionArmResets.pdf

Best, Steve
0 votes Thank Flag Link Tue Jan 27, 2009
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