A second wave of Alt-A loan defaults are scheduled to hit through 2011.
There are many great deals available, be selective.
Trying to time the bottom of the market is much like trying to catch a chicken let loose in the yard.
By the time the train leaves the station MANY ARE GOING TO BE LEFT BEHIND.
The bottom of a market is a LENGTH of time not a POINT in time.
Many wiseacres in this forum have lost EVERYTHING in their 401Ks yet continue on with their investment brokers??? Go figure.
Homes are not stocks...........rationalizing them as such LEAD US TO THIS MESS!
What about good neighborhood to live in?? a good school district??
What about LIKING where I live and building a future??
These things have real value ...yet are now lost in the homebuying conversation.
If you would like to discuss the many specifics about the advantages of buying now........Email me.
Century 21 ** Orange County
If you are not working with a foreclosure expert.......... you may want to rethink your entire strategy.
Realtors can be a big help when buying or selling homes and most of them charge MUCH less than a total of 6%.
I'm not a realtor by the way, and although I have a real estate license, I am not actively helping homeowners buy or sell real estate so I have no ulterior motive here. (See website)
I didn't tell her renting was a bad idea. I told her Orange County is considered a good long term buy but that it wouldn't be a good idea to buy at that point if she wanted to sell in the next couple of years. I think there's a good chance value here will recover. Let's revisit this in 5 or 10 years and see if I'm right.
With the market continuing to decline in most areas, buyers should obtain an independent appraisal to help them make sure they don't overpay for their home. Sad to say, but we've all realized by now that bank appraisers can be biased sometimes and inflate values. Get your own appraisal!
We are in a similar situation in Costa Mesa. 5 weeks ago when we were negotiating price it seemed like a great deal, but since then I've been feeling that we may have been able to find a better deal in Dec '08 or Jan '09. But, as we've talked about it, we've decided to just go through with it even if we may have been able to spend $10K less or gotten a better house for the price we're paying. The main reasons behind our decision to go through with it is that we intend to hold the property for a long time. We want to move in two years to a house we bought in Paso, but we are so ready for own house now. I'm sick of growing tomatoes in containers and we really want to live in a place that feels like it's ours. In two years we will rent it out and we expect that it will help fund our retirement.
If you are plannng to live there for a few years it will be a wise investment to buy. Ask someone you know who bought a home 7-10 years ago were they sad that they bought when they did?
Then if you were to fast forward to 5-7 years from now and ask yourself the same question , if you buy today would be happy in 7 years or so. I bet the seller of the condo you are considering to buy was happy he bought when he did. I always ask my cleints this question and it really helps them with this decision.
What % do they think that the price will drop this year. another 5% maybe , so I would make an offer at 5 % less than asking price and secure todays low Interest rates. If rates went up even 1/4% this will nullify the price adjustment on your montly payment. If you would like exact numbers for your situation please feeel free to contact me . I specialize in Orange and Tustin Area.
E mail: email@example.com
All the answers you have received so far are pretty right on the mark. The questions of how long you want to own, your tax situation (needing a tax shelter or not), exactly where, etc. all come into substatial play while we try and answer your question.
One of the main questions is, have you removed your contingencies from your offer? If so, then you have to factor in losing your deposit in to the equation.
I would advise a thorough discussion with your agent or Realtor, TODAY to clear up any doubt you might have and so they can better answer your questions with better knowledge of your circumstance.
Robert M. van der Goes
A few things to think about.........
1) Housing is a good lomg-term investment.....it's not a day trading activity in any way.
2) Owning a home isn't just about an investment.....It's also about building community, creating a place of your own, and taking part in the American dream.
3) Homes are different than stocks....Most people stay in their home for about 6 years....they buy for the long haul.....not buy and then dump six months later.
4) It is IMPOSSIBLE to time any market. Right now, interest rates are favorable and buyers have lots of great homes to choose from.
5) Conventional loans are available, rates are reasonable, and FHA-insures mortgage applications have been rising as low and moderate income buyers seek alternatives to sub-prime loans.
6) 2/3 of metropolitan areas across the country are showing modest price gains, and the national median homw price in August showed a slight increase.
7) The average homeowner has seen an increase of 50% in value over the past 5 years. Prices are projected to rise about 2% next year, and in coming years home price appreciation should return to historical averages, around 6%.
8) You need a Realtor that is passionate about helping people get into homes and expanding homeownership opportunities.
I love helping people navigate the real estate market in Orange County California.
Please contact me directly @ 714-718-7156 or firstname.lastname@example.org
I look forward to answering your questions!
Kurt Steinhebel ** Century 21 Superstars ** Orange County ** California
If you back out of the deal now you may lose your deposit money. I am in the Studio City area. The market has slowed, but homes and condos are still selling. The median price of a home has actually increased.