156 homes sold in Corona in the last 30 days at an average price of $390,706 (source: Multiple Listing Service). Of course, prices vary widely based on location, condition, age, and size.
There are four types of homes you can buy today: Brand New, Short Sale, Bank Owned, and Owner Occupied.
My experience (and I'm currently working with 18 buyers from Corona to Moreno Valley to Hemet) is that Brand New homes are still overpriced, but they lure you in with upgrades as bait. Upgrades DO NOT translate dollar for dollar into value.
Short Sales are priced lower because the listing agent wants to use the house as a lure to get you to work with him. The only way I'd suggest you consider a short sale is if it is THE house for you and you have the time to wait out the bank.
That leaves you with Bank Owned and Owner Occupied homes. The difference between these two often comes down to price (Banks are often more reasonable than Owners) and condition (Banks sell homes AS IS).
I run the numbers daily for my Buyers and a good rule of thumb lately is that Bank Owned homes are CLOSING at about 55% of what their last sale price was ... so the deals are out there!
What you have to ask yourself is, what part of this is an investment versus what part is simply wanting a home? How much of my asset base am I willing to tie up in real estate? It's never a bad time to buy real estate. The question always comes down to price.
Thanks for the opportunity to help. Email me at Sean.Giorgianni@gmail.com if you need anything else. I don't bite and I'm here to help!
If we could predict anything in life in general we would not have questions or worries, however we can't and anyone who says they can, that is only their pure speculation.
Buying a home is not like buying a pair of shoes, dough the recently decline in home prices got so low that you may wonder where their were heading. Most cities in Riverside County hit bottom already, and some had a slightly increase in value.You need to look at your needs and wants, your finances, decide a price range and start looking. Keep in mind that prices are based on buyers interest and affordability. The homes less affordable will probably decline in value even further. Ultimately the decision when to buy or where is yours, and is specific to your needs and likeliness.
Find yourself an honest realtor, who will inform you all about the market aria you are considering, who will not pressure you to make a decision and will work with your goals, not his. To often real estate agents forget that their role is to inform, educate and get the best possible deal for their clients..... not for them.
Sean, that is really good advice. In recent year people just shot themselves in the foot. They bought the maximum they could possible qualify for (bad idea - first sign of trouble or job loss or whatever and you're doomed) and then as prices went up they turned that into "wealth". For those of them dont care about ever owning a home again or having a good fico they may have just actually walked away with some coin or even just a few years of splurging on the finer things that they would have never been able to normally afford.
Anyways, keep up the good advice. Its rare I see that coming from Realtors :) :) Now before I get flamed by every realtor on here i just have to say that its not personal but many of you seem to be perma-bulls on housing. Now I know thats somewhat of a job requirement but at some point you have to be honest with yourselves and then with your clients about the grim realities out there.
Prices are falling like a rock and they have a long, long, long way to go... Patience is your best friend right now...Also, if you take a look at the book, IRRATIONAL EXUBERANCE by Robert Shiller, it shows that home prices never keep up with the pace of inflation. They have only gone up in the past few years as a result of a speculative bubble...
Check out this article:
Prices will fall to get in line with Home Price vs. Rent and Median Home Price vs. Median income ratios. You will probably kick yourself if you buy a home anytime soon. Renting is your best bet right now, and wait to buy in 2011 or 2012 or even later.
If you bought a home for $300,000 and next year, you saw an identical home across the street selling for $240,000, would you kick youself? You are in a prime position to rent a great place and negotiate a great price for that rental. Save your money and buy in a few years.
When prices start to rise, they will not jump so high that you would say gosh I wish I would have bought in February, 2008. It just won't happen. The homebuyers left will mainly be investers (many who were burned trying to flip) and new home owners. Lenders now have stricter lending practices which eliminates even more competition. If you can wait until you see the signs of home prices rising, homes will be much lower than they are now, even if you don't time it "exactly."
That is a good question and the person that tells you that they "know" for certain when home prices will begin to rise must have a really good crystal ball :-) Now is truly one of the best times we have had in recent years to purchase a home, especially if you are a first time homebuyer. To be considered a first time home buyer you need to not have purchased or owned a home within the last three years.
With inventory up, prices going down and interest rates at historic lows you have the opportunity to find your perfect home right now. With 2100 homes available for purchase, 95 sales (as of December, 2007) and 21.2 months of inventory on the market the buyer's market has not been this strong in ages.
Also, now is a great time to start looking as we are still in what is historically a slower time in the market (fewer homes tend to sell in the late Fall to Winter than they do in the Spring and Summer) so that means less competition for you.
If you are not currently working with a Realtor and would like to sit down and discuss your options, I would love to talk with you. I am right next door in Claremont and we can get together or speak on the phone whenever it would be convenient for you.
Please give me a call at your earliest convenience. Let's see if we can get you into your very own home before spring.
Take care and have a wonderful day!
Tisza Major-Posner, Realtor, Keller Williams (909) 837-8922