James Baxter 760-271-9971

Hi Peter,
The long and the short is you should be.... however we have not seen your contract...
How long have you been in escrow? Have you removed any of your contingency's,
How long did your agent give you to do inspect of the property?

This is really a question you should be asking your agent.
A lot will depend on what your agent wrote in your contract.
You better get on the phone with him or her! - Tue Jun 30 2009, 16:45

I think we are getting this back on track. However, I like how I am the one getting hit as greedy and self promoting.
When I am quoting Mr. Warren Buffet with my quote on greed. I truly do feel that guy may know a little more then the rest of us about what is going on in this market.... just a little. ;)

I am quoting my fellow poster Mr. Chalnick in regards to self promoting. My apologies if that rubbed some of you the wrong way.
Non the less some points need to be made.

I should have started out my post with all markets are local, you got to look at the zip codes you are interested in.
(I am sure that a working town that has had its only factory just closed down. Still has a long way to go in its down turn.)

However what I have been referencing is what is taking place in sunny So. Cal, San Diego.

Looking at San Diego - According to efanniemae, the median income is $72,100

https://www.efanniemae.com/sf/refmaterials/hudmedinc/

And according to housing tacker, the median home price is 351,000

http://www.housingtracker.net/old_housingtracker/location/Ca…

The median income more then covers the median home purchase. Homes here are "affordable".
A family can legitimately afford to qualify and buy a home here again.

The other indicator you have to look at is the price per square foot to rebuild your home.
buildforyou.com pins the number around $125 per square foot (a lot of factors go into this number some homes are $80 sq. ft. some are $200+)
Call your insurance agent... my just told me I should have my home covered for $175 sq. ft..

http://www.b4ubuild.com/faq/faq_0002.shtml

Homes in the San Diego area a coming back in to line with what it cost to build them. The yen and yang are coming back in to balance.

I agree with Mrs. York a CMA should not go more then 90days and you have got to look for the down trend.
If prices are moving down step away from the house or offer less.

In the North San Diego market. We are seeing homes where the median income of that zip code can afford to buy a median priced home....
prices are making sense again.

Items have core values and the market will determine that cord value.
I am optimistic about our future and what tomorrow has in-store for us.

Bottom line once again - people will always need a place to live and at median home price of $350,000 assuming 20% down you payment comes in
around $1500 a month - That seems like a better deal then renting.

I think there are too many smart people that want to succeeded, then to let us all fall into the dark ages and homeless as has been some what implied in past posts. - Tue Mar 10 2009, 07:46

Well Peter I am sorry to hear you feel that way.
I can see how my last post can be taken as "harsh"
However - it is the nature of the beast - markets go up and markets go down.
It is the yen and yang.

In the 90's we had 30-40% drop in home prices much like today.
However unlike what what happened in the 90's we are now faced with a world wide economic down turn.
that scares a lot of people! And it is affecting more then 1 or 2 segments of the markets like what happened in the early 90's.

The bottom line that people need to take home is this.
We will always need a place to live and a roof over our heads - will the market keep going down or will it go up? We flat out do not know!

Looking at the facts, my guess is. We will see a flat market or even another 5-10% fall for the next 2-3 years or so then a slow incline like what we are use to seeing over the last 50 years or appx 8% ROI.
And interest rate have to clime back up around 7-9%.
And that make sense. What we saw during the early 2000's was nuts and was flat out an over inflated market that was fueled by the deregulation of the lending markets of the mid 90's (which help get us out of the mess we were in then) then the drop in interest rates after 9/11 to help the glooming rescission then. They both worked for the time. However they fueled what we now know today. The free money to just about anyone who wanted it.

Historically when we have had a new president take office, interest rates have gone up
Carter, Reagan, Bush, Clinton. (Who remembers 14% interest rates in the early 80's?)
http://www.foreclosureforum.com/rates.html

What is in store for tomorrow..... no one know, tomorrow is promised to no man!

In the mean time you can pay 2000 bucks a month in rent
or buy home for your family you can call your own and know that your rent will not go up. - Mon Mar 9 2009, 22:02

You mean like a home that sold on 10/29/04 for $645,000.
that my client just closed on 3/5/09 for 390,000 with 3%RCC?
If I did my math right that is a 40% price drop.

I would have to agree with my colleges before me.
And thus why I too am "shamelessly promoting my business"

This decline is about the same as what we saw in the early 1990.

Home prices have dropped and interest rates are low.
It is a great time to buy!

When people are greedy be fearful, be very fearful.
When people are fearful be greedy, be very greedy.

Never has this statement rung more true, then it does today!

2009 will be the year you look back on and say I wish I would have bought then! - Mon Mar 9 2009, 20:58

Hi Pravar,
We can all tell you what area's we like and where you should buy.
Bottom line, grab your Realtor hop in the car and go look at homes.
You will get a great feel for the area and should be able to narrow down your search in a matter of an afternoon.
If your budget affords I would recommend La Jolla. But again I am not making the house payment, you are!
Builders and sellers in general, have already set aside the Realtors commission and working with one or not - for the most part does not affect your purchase price. There are always exceptions to that rule.
If you get a competent Realtor - they should be able to get you a good deal, if not a great deal, help guide you through the home buying process and help keep the deal together - that last one has never been more prevalent then in this type of market.

all the best! - Sun Mar 8 2009, 20:33

Hi Nick,
You might also look at San Marcos, they have some nice area's and the market seems a little stronger or busier, there then other area's in San Diego county - Sun Mar 8 2009, 20:18

It is the fall out still to come.
To answer your question, we really do not know.
You will hear some say we are on our way out.
Others will tell you this is the beginning of the end.
Historically speaking when you look at the past when we have had down markets the indicators are that
we should be leveling out and in 3-4 years start an up trend. However anyone paying attention to what is
going on will tell you this is nothing like what has happened in the recent past.

If the economy does not start to turn around I could only see jumbo's taking the hit like the sub primes have.
As we sit they have already dropped and in San Diego we are starting to see more and more pop up as short sales on the market.... I can only concluded that REO's are next. - Fri Feb 27 2009, 13:08