The question is one that is being asked by many people who normally would consider buying. You've gotten a good number of the justifications for high prices they also would hear. What's interesting to me is that some of the justifications could also be the very reasons for these prices continuing to decline.
Supply and Demand...There is a huge supply now and it is growing larger, yet so far not the number of buyers to create anything approaching a demand. Most people think the prices will or should decline even more.
Price is determined by the buyer...Isn't that what is happening now as buyers sit on the sidelines waiting for housing to become affordable for them..
Patience is virtue...For the buyer that couldn't be more true than it is now. We are at the beginning of the recession, not the end, the fact is prices are still declining and warnings of missing the bottom are premature at best..
American Dream...Overpriced property, upside down mortgages, foreclosures, people fearing the effect of the economy on their jobs or retirement ect...???
Who's is to blame?...It's the banks, it's the CEO, the goverment, loan brokers, bank lenders, greedy lying consumers, re agents, the media, kindergarden field trips and daylight savings, ignorant consumers..Take your pick, everybody has someone to blame, and yet each group when asked had nothing to do with it.....it was something else..
What you asked and have said is something I am hearing in conversation every day. More people seem to be becoming more angry and less tolerant of generic responses each passing day, as someone else they know is foreclosed on, their small business goes under, the investment in property they were told every smart person makes declines in value, entire neighborhoods fill with for sale signs,and food banks see growing lines...
This isn't to suggest that there are not buyers for this market and yes, there will be a good number of people who get exactly the perfect deal for them..But to suggest that it's a great time to buy for everyone and warnings of missing the bottom if you don't buy now are IMHO just not true..Read thru the Q&A the same people were giving the same responses a year ago, six months ago, three months ago, they were WRONG then and they are wrong now..Do you really think the economic situation in California is near being fixed? Do you really believe we are close to the economy being fixed anywhere?
People like you (and I believe you are in the majority) will be the ones who finally decide what the market will be for all the reasons given to you in the answers you got. People like you will decide which agents to use and the RE industry will be shaped by the decisions of future consumers, not the wishful thinking of some..
Your question is being asked by many, even if the number isnt $6,604.83 or $800,000. It's being asked about prices and expenses across the board..
Please continue to ask, and remember your opinion is worth just as much as anyones in this Q&A about this topic..Yes some people may be able to pay those prices, but not many can...
Hope to see you around, Dunes
"You might say to yourself that no one in their right mind would spend that much to own a $850,000 home...why not rent? Well, should that $850,000 home appreciate just 5% in one year, you as the owner can expect your equity to increase by 25%!! In this situation, if your home appreciates just 1.4% your equity will increase at least 7%.
Talk about a safe and very lucrative investment. If you think of your loan payments as "rent", you increase your equity from the bottom end as well and the principal you pay every month can be recouped when you sell the home, unlike rent which disappears forever. "
Anyhow. Homes in Fremont are now around 300k-400k, selling at values LESS than what they sold for in 2002, at the same size as the one I linked to here. So we're looking there.
I could pay for a tiny little house a block away from a noisy expressway.
The prices are crazy. They can't possibly stay this way, because I can't possibly see how so many people in this town could possibly be making enough to afford $6,600 a month payments. Is every home owner in Campbell a star corporate lawyer? Many of the cars I see parked in these driveways are older and cheaper than mine. Instead of renting a nice place and buying a masarati, they own a tiny little house in a crappy little neighborhood.
"The housing market is still one of the safest investment you can make, and the tax write offs make this desirable for most needing the write off, due to a good paying job. "
Even though it IS crazy, there is a simple explanation for it.... Supply and Demand. As long as there are buyers willing to pay these prices this will remain to be the case.
There are single family homes in Campbell in the $500K range, see mlslistings.com Perhaps you'll find something you can live in within your means
There is a pocket in 95127 that is 3 bedroom 2 baths that are going for around 300K, also the high school in this area is API scores of 800.
Unless you really want to be in Fremont, this may be another choice.
Denise Stuart Coldwell Banker
Where did the $6,604.38 come from!! What interest rate are you talking about!
I am selling a yown house in Los Gatos at the same price and after the 20% down payment the monthly payment could be as low as $3050.00
The rent on this town house is $3500.
Check with different lender.
By the way the computers you can buy every other weeks will ve worthless in 10 years! but your house might pay for your kids college!
Happy New Year
Here is the generic answer to home buying.
People of all walks:
Poor vs. Rich.
Born here vs. transfered here.
It is called the american dream because this is in fact is the ultimate payoff.
At least for those with family that children have seen for years buying low and selling high or the wealth of the family in many cases was the rental homes.
My family bought homes and kept them in the family and via transfer my Mother and step father are living a very comfortable life due to investments made during down real estate markets. Even if you choose not to live in an area, but the home prices are low, some choose to have the fall back of rental property and still choose to rent themselves. The housing market is still one of the safest investment you can make, and the tax write offs make this desirable for most needing the write off, due to a good paying job.
Give me a call if I can help.
There is obviously desirability or the home would not be priced as it is......time will tell.
If you owned the home, would you consider listing it for $399,000? I believe we know the answer.......