Chess Player, Home Buyer in San Francisco, CA

Is this a good time to buy in the Mission area? Are the prices still sky high or are the coming down?

Asked by Chess Player, San Francisco, CA Mon May 26, 2008

Should I wait?

Help the community by answering this question:

Answers

16
It depends on what your motavation is to buy in Mission San Jose. Schools? You need to start sooner than later and make sure there is placement for your kids in the schools. You need to have that wrapped up by summer.
Brad Hatton
1 vote Thank Flag Link Mon Apr 19, 2010
What did you end up doing?
0 votes Thank Flag Link Mon Feb 24, 2014
Chess Player:

You posted this question back in 2008; what did you end up doing?
-Steve
0 votes Thank Flag Link Sun Feb 23, 2014
It is a good time to buy as the interest rates are still low. As we move into Spring and the Summer months you should start seeing more homes on the market. It is always a good time to start looking so you can get a feel of the market.
0 votes Thank Flag Link Sun Feb 23, 2014
Every area has their own special characteristics, however overall, it has been a good time to buy as rates have been excellent and the markets have been good
0 votes Thank Flag Link Sun Feb 23, 2014
Hi,

I am a mortgage loan officer, from most agents that I talk to they told me that inventory is low so this is your chance to start shopping for your home so you find the best fit for you.

I recommend to work with a realtor that focuses in the mission area and that is well connected with diffrent listing agents.

In the mean time Ill be happy to help on your prequalification for mortgage loan we offer both Conventional loans and Portfolio programs. We are a direct lender and feel free to contact me for more information. We have a really flexible programs and fast turn around closings.

Joanna Ramos
Loan Officer
Mortgage
NMLS# 868529

Cell: 415-823-8027
Fax: 855-622-8174

Joanna.Ramos@Banchomeloans.com
http://jramos.banchomeloans.com/
0 votes Thank Flag Link Sat Feb 22, 2014
Most of the time price is determined by supply and demand. Mission School district maintained its value & prices. If you are planning to stay in the home for 5-10 years & can manage the mortgage payments, you should buy. call me when you get a chance and I can guide YOu. SumaHomes.com
0 votes Thank Flag Link Fri Feb 14, 2014
It all depends on your view of the inventory/prices, interest rates, and tax credits. Prices will go up as there is more demand and less inventory. Interest rates are a historic low and will go up. Money for tax credits will also run out soon. Depending on your goals and time frames, you may not find a better time to buy.
Web Reference: http://www.sunilsethi.com
0 votes Thank Flag Link Fri Apr 23, 2010
Kools, a couple comments re: your remarks:


"--- Ben Bernanke already said to senate that he is going to keep the rate quite low for substantial amount of time (till the economy is on firm footing)"

Not sure which rate you are referring to here. If you are commenting on the Fed Funds Rate, which is now at .25%, "Big Ben" will be forced to raise this as the economy heads out of the current recession to control inflation. If you are commenting on mortgage rates the discussion gets a little more convoluted. The Fed Funds rate ONLY influences 2nd mortgages because most of these are tied to the Prime rate, which is the Fed Funds Rate + 3%. However, there's another twist here. This is because the Fed came out 11/25/08 and said they would purchase up to 750M in mortgages (Mortgage Backed Securities to be exact). Then, on 3/18/09 this was doubled to 1.25T. See http://www.newyorkfed.org/markets/mbs_FAQ.HTML for more info.
The Fed's purchase of MBS has been artificially keeping mortgage rates low. Purchases began in early January 2009 and will continue until the end of 2009. Without continued intervention by he Fed, there's only one way for mortgage rates to go and that's UP! If investors felt MBS were safe we would not need the Fed purchases; however, at this point, the word "trust" is not used much when talking about the security of MBS investments. This will be true until AFTER the housing markets stabilize and then start showing growth since increasing equity in a home is the true collateral of the investment.

To learn more about how Mortgage Rates, see: http://docs.Steven-Anthony.com/SAR-HowMortgageRatesAreDeterm…


"-- Even if the interest rates goes up, then obviously the affordability goes down, which indirectly means there will be less demand which will again bring down the asked price... "

I agree with you here, but economic movement is rarely tied to a single variable of what can only be described as an ever-evolving equation. Will the government intervene with a new plan if they see housing destabilizing again? Will an improved economy lead to wage increases that help counteract the "carry cost" of the mortgage? My point: the only thing that is fixed right now is that everything is variable!


"--- In this time of economy when CEO to an engineer is not sure how long he/she will have job, I think its a risky bet to sign up for a 30 years liability just because the interests rates are low. "

Is it less risky when rates are higher? One's job security does not come from an employer; it comes from the transferable skill set of the individual. Different areas react differently to economic change (see 94539 stats in my NUMMI comment below as an example).


"-- If the school is the issue, I see resonable houses/condos/townhomes are available for rent which is way cheaper than owning a shackle home in mission san jose by forking out cash :-) "

I think it is important for potential buyers to go through the "rent vs. buy" analysis. This aside, some people just don't like to have other people living above and to each side of them. In these cases the purchase decision is based more on "quality of life." Focusing on just the quantitative measure of finding a property discounts the qualitative aspects of a home, and that's a huge mistake because while price is important in buying a home we all know location, amenities, look and feel play a large role in determining market value as well. Some buyers place securing the qualitative aspects above the quantitative cost of acquisition, some reverse these priorities.


"Very soon Toyota is going to pull out NUMMI plant , which employees 4500 people.., Just imagine impact of the (assuming just 10% living in surrounding areas) this closure..."

I understand your logic here, and I also have to believe there will be some impact; however, it’s very hard to gauge the impact to the local area without knowing how many employees actually live in the MSJ area of Fremont. In fact, most of the people I know who work at NUMMI live outside of Fremont.

All in all, my personal belief is that if someone is interested in owning within the MSJ area long-term, now is the time to buy (I am a little concerned about where interest rates may be heading when the Fed stops purchasing MBS). Looking at all detached homes in the 94539, only 3 of 115 are distressed, in townhomes it's 0 of 12 and Condos are 0 of 5. I would say that this demonstrates strong employment stability for the area. According to MLS records there have been NO distressed sales in the 94539 area this year to date.

Best, Steve
0 votes Thank Flag Link Wed Jul 29, 2009
Another data point is, Very soon Toyota is going to pull out NUMMI plant , which employees 4500 people.., Just imagine impact of the (assuming just 10% living in surrounding areas) this closure... especially considering there will be long auto car depression and they can not find any other potential job in this area.. (since no other auto company exists in bay area) :-(


-kools
0 votes Thank Flag Link Tue Jul 28, 2009
Well most of Agents were spelling out of threat of increase in future interests rate were the reason of buying it now... I have the counter argument...
--- Ben Bernanke already said to senate that he is going to keep the rate quite low for substantial amount of time (till the economy is on firm footing)
-- Even if the interest rates goes up, then obviously the affordability goes down, which indirectly means there will be less demand which will again bring down the asked price...
--- In this time of economy when CEO to an engineer is not sure how long he/she will have job, I think its a risky bet to sign up for a 30 years liability just because the interests rates are low..
-- If the school is the issue, I see resonable houses/condos/townhomes are available for rent which is way cheaper than owning a shackle home in mission san jose by forking out cash :-)

-kools
0 votes Thank Flag Link Tue Jul 28, 2009
CP, Andrea is 100% right. I have lived in the Mission District of Fremont since 1988 and the area has always been a prime destination location. Additionally, Michael brings up a strong point regarding the effects of rising interest rates wiping out any benefit of "waiting for the bottom." This is very wise advice.

As a Realtor and Mortgage Banker I keep well informed on the two sides of the purchase equation. Inflation concerns are tilting the direction of mortgage rates upward as Mortgage Bond holders are selling to avoid deterioration of the fixed yields these investments are susceptible to during inflationary periods, which we now find ourselves in. My advice: If you desire the Mission area its time to buy!

Best Regards,

Steven A. Ornellas, GRI, ABR, e-PRO, CMPS, RE Masters, MBA
REALTOR® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist

Steven Anthony Real Estate & Financial Services
Cell: 510.461.6011 Skype: brokersteve
0 votes Thank Flag Link Fri Jun 6, 2008
BEST ANSWER
To stay abreast of the market, here's a place you can start: http://www.DQNews.com.

Check out the latest news. For example, as of May 20, 2008, the news in the Bay Area is that "Bay Area home sales edge up in April."

Story line is about: Bay Area home sales edged up from a seven-month run of record lows last month, indicating that mortgage availability is improving and that an increasing number of fence sitters have decided they like today's lower prices...new and resale houses and condos sold in the nine- county Bay Area in April was up 28.8 percent compared to March sales.

On the menu under "Charts" click on SF Chronicle Chart and choose the area by code. That should give you the trend on how many sales were closed compared to a year ago, what the median price is compared to a year ago, etc.

Hope this helps.
Web Reference: http://dqnews.com
0 votes Thank Flag Link Mon May 26, 2008
Hi there Chess Player. You should look for the best deal as prices are not going down like a sinking ship as much as the media would like to portray. The Interest rates are good now . You know they used way higher not so long ago. If interest rates went up even one quarter or one half a percent, then any minimal drop in price would be nullified anyway. What do you feel the prices will come down by in %?

If you would some recent market analysis on this area. Please let me know

Kind Regards
Michael Barron
First Team Real Estate
(714) 552-6817
0 votes Thank Flag Link Mon May 26, 2008
Prices are not going down in most areas of San Francisco. The only areas where prices are under pressure is in some areas of district 10. If you can get a loan now is the time to get shoppiing and buy. Rates are good, there is some selection and many people can't qualify for loans so your competition won't be bad.
0 votes Thank Flag Link Mon May 26, 2008
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
Contact
Dear Chess Player:
MSJ - Fremont - Despite journalist doom and gloom and national commentary to state otherwise NO - Fremont Mission San Jose is as strong as every with nearly little to show for Mortgage Meltdown.

In fact I'd venture to say that properties in this area still move swift on the market with numbers which go pending are strong, in fact stronger then any one expected.

Currently interest rates are very attractive, and while others circle the wagons in hopes of seeing the MSJ area falter with values wise people are aggresively out there negotiating the strongest offers they can to possess a home in this wonderful area.

If we see prices edge lower, do you belive that the projected increase in interest will make it a better time to wait, obviously not - housing in the Mission would have to SLUMP significantly to off set any increase in interest.

Best,
0 votes Thank Flag Link Mon May 26, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer