Doug, Other/Just Looking in Fontana, CA

I'm looking to buy a home in Rancho Cucamonga/Fontana, CA area within the year.

Asked by Doug, Fontana, CA Wed Jan 2, 2008

I know the home prices have been continually dropping, but does anyone know when the cost of homes in this area are expected to reach their lowest? Any help would be appreciated. Thank you!

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It is anyone's guess where the bottom is. Some areas of Fontana have seemed to hit the bottom already yet, the area continues to surprise me. When the cost to build far exceeds current property values in an area, it would be difficult to see that they could go down much further. There is still room for downturn in any market though as you also have to have demand to see stabilization. There is far less demand in Fontana than in Rancho Cucamonga which seems to holding value pretty well considering. The next 6 months will determine the direction of the future market. I have seen some pretty good deals in both areas on the REO market. You should watch the market very closely and determine the neighborhood(s) that are ideal to your situation and then continue to research the market in those specific neighborhoods. Good luck in your search!
1 vote Thank Flag Link Wed Jan 2, 2008
I do know that in San Bernardino County, Fontana is the number one City for notices of default (Nov 07) with 427 notices filed, Rancho Cucamonga came in 8th with 155 notices filed during this time. With so many distressed properties on the market it will take some time for that inventory to be absorbed. None of us has a crystal ball -- wish I did! -- so trying to time a market bottom isn't really possible.

I was just looking today at our Northern California numbers and I see that even though November numbers for notices are very high they are all down from October -- feel free to email me if you'd like me to look up San Bernardino county numbers. (melanie@condocontessa.com)
1 vote Thank Flag Link Wed Jan 2, 2008
There is no way to know when the market will hit the bottom, but remember what goes down usually and eventually goes up. There is another important factor in purchasing a home at this time and that is that the interest rates are very low. The most important part of purchasing a home is that you can afford the payments. You want to make sure that you do not get any creative type of loan, unless there is something that is changing in your life that would make you able to qualify and pay for increased payments in the future. I would advise against a negative amortization loan and it is also best not to get an interest only loan, unless you are willing to make extra payments towards the principle. If you are planning to stay in the home, now is the best time to buy even if prices go down, you get to take advantage of the tax benefits and you have the advantage of looking for homes that are bank owned or short sales which many times can be purchased below appraised value (by the way, that is what is causing the home prices to go down, once they are gone and supply goes down the home prices will go back up). You also have the advantage of having a home to call your own, which is part of the American Dream. If you would like any more information about areas, prices and for what loan amount you qualify for please give me a call. Diana 909-945-5763
0 votes Thank Flag Link Tue Jan 8, 2008
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