california home prices to hell..

[thedecapitator]

how much longer do you guys think the home prices in california will keep on plummeting down??

theyre offering in some cases a 40,000 downpayment on 180k-200k homes up on riverside, lake elsinore, perris, and mo-val.

and the end monthly payment would be from 750- 1100

just wondering if this is the RIGHT time to buy a home.

I cant really see the housing market go up anytime soon...

do you guys think the prices may go back down to 115k? like they were couple years back ?

just wondering what you guys think...:hs:

[jackjack]

the real estate market is HORRIBLE right now. especially in my area. i'm not sure how long it will last, but definitely take advantage of it while you can.

[psychoblue23]

Houses are deffnot going to get more expensive... I know NorCal prices continue to stay low, and I see more and more forclosure signs all over as ppl are still unable to afford to pay off there mortgage.

If your rushing to buy because you think prices will shoot up again I would say your fine if youneed to wait.

My buddy just bought a house for 480,000 that the bank was into for 720,000. Needed some workbut what a great deal. Huge yard, good size garage, 4 bdr

Not sure how it is down in the southern part tho.. I would imagine its not too diff

[usdm180sx]

Once all the 2-3 year sub-prime and option arm mortgages come due (Should be after 2008-2009 as the bulk of them were funded in 2005) then short sales and foreclosures will peak. Banks will then sell their inventories of foreclosed homes on the open market to minimize thier overhead (homes without loans = no interest income) which will cause home prices to bottom out. Between now and then buying a home will only get better.

[thedecapitator]

the real estate market is HORRIBLE right now. especially in my area. i'm not sure how long it will last, but definitely take advantage of it while you can.

i agree the real estate is horrible i have read in a couple of magazines that they predict house prices to go down even into the 2009 year

the price as it is now is pretty cheap at 180k-220k which is the budget aimed towards but that 40k down payment kills the possible buyers seeking for their first home..

AND.. the fact of the possiblity of housing prices to go down another 20%

buyers are too scared to lose that 20%... what do you guys think?

this is a pretty interesting subject and anybody with knowledge bout this issue please comment.:x:

[thedecapitator]

Once all the 2-3 year sub-prime and option arm mortgages come due (Should be after 2008-2009 as the bulk of them were funded in 2005) then short sales and foreclosures will peak. Banks will then sell their inventories of foreclosed homes on the open market to minimize thier overhead (homes without loans = no interest income) which will cause home prices to bottom out. Between now and then buying a home will only get better.

i see where your getting at into this but theres thousands of houses just there with a for sale sign on the front lawn and many people losing their homes..


this is insane!

may this be something like a DEPRESSION?

that would be scary as in many construction workers and mechanics have been getting laid off

[BustedS13]

home prices aren't just sliding in california. a friend and i are working on buying our first house. no it's not gay. we found a foreclosed home in a semi-decent area (the neighbors are slobs but they won't rob us style) for 75k. house sold in 2004 for about 130k. we plan to add a bitchin' garage, live there for a few years, and sell it for a nice profit once everybody pulls their heads out of their asses.

DOOO IITT.

[thedecapitator]

home prices aren't just sliding in california. a friend and i are working on buying our first house. no it's not gay. we found a foreclosed home in a semi-decent area (the neighbors are slobs but they won't rob us style) for 75k. house sold in 2004 for about 130k. we plan to add a bitchin' garage, live there for a few years, and sell it for a nice profit once everybody pulls their heads out of their asses.

DOOO IITT.

NIIIIIICE...

lol @ " no its not gay. "

75k is a steal and yes seems like a time to invest some money and couple years down the road sell and leave with pockets full of change:naughty:

i will just have to keep a close eye at the real estate market..

thanks for the quick replies

ive been checking out the home prices online and i still think they may go lower and lower

some houses bank owned already went down 75k in the last week :aw:

[HyperTek]

how much longer do you guys think the home prices in california will keep on plummeting down??

theyre offering in some cases a 40,000 downpayment on 180k-200k homes up on riverside, lake elsinore, perris, and mo-val.

and the end monthly payment would be from 750- 1100

just wondering if this is the RIGHT time to buy a home.

I cant really see the housing market go up anytime soon...

do you guys think the prices may go back down to 115k? like they were couple years back ?

just wondering what you guys think...:hs:

we trying to get a 5 bedroom house under 300k in said areas..

[BustedS13]

NIIIIIICE...

lol @ " no its not gay. "

75k is a steal and yes seems like a time to invest some money and couple years down the road sell and leave with pockets full of change:naughty:

i will just have to keep a close eye at the real estate market..

thanks for the quick replies

ive been checking out the home prices online and i still think they may go lower and lower

some houses bank owned already went down 75k in the last week :aw:

it's not even about the profit, really, even though that's pretty much inevitable. fact is with home prices this low, with a 30 year it's actually cheaper to pay a mortgage than it would be to pay rent. so i mean, when your choices are "throw money away on an apartment" vs. "buy land for reals and actually own something", it's a pretty easy decision.

[thedecapitator]

it's not even about the profit, really, even though that's pretty much inevitable. fact is with home prices this low, with a 30 year it's actually cheaper to pay a mortgage than it would be to pay rent. so i mean, when your choices are "throw money away on an apartment" vs. "buy land for reals and actually own something", it's a pretty easy decision.

def... agree on that its just always scary to have it in your mind that u may lose it like everyone else has eeeeeeek..
but its all to the good u just gotta know the limits on the mortgage

+1

[BustedS13]

def... agree on that its just always scary to have it in your mind that u may lose it like everyone else has eeeeeeek..
but its all to the good u just gotta know the limits on the mortgage

+1

only way you're gonna lose it is if you get some shit mortgage you know you won't be able to pay, like all these suckers did... we wouldn't be having problems if people wouldn't take things that are too good to be true.

[kornaz]

The banks who gave out loans fucked a lot of things up too. They gave low percentage, minimum to no down payment loans out. And then the people could not afford the house anymore, that's what's killing the market. Banks do NOT give out any good loans or percentages anymore. Because they lost a lotta dough. And it's not easy for first time buyers, that's what had a big impact on it too.

[downshift_sideways]

In our area house pricing is way low.

Lot of foreclosure signs around my neighborhood.

[drift-it]

The market will continue to decline over the next 2-3 years and it'll come up a little bit and then go down to the bottom I'd say around 2012-2013ish and then the storm will clear around 2015. So I'd hold off a little bit before buying a home, could vary somewhat but that's about what we are looking at. Oh yeah and I'm studying/training in real estate investment that's why I knows this stuff. Don't take my word though, I'm just saying what has been predicted.

[Gnnr]

it's not even about the profit, really, even though that's pretty much inevitable. fact is with home prices this low, with a 30 year it's actually cheaper to pay a mortgage than it would be to pay rent. so i mean, when your choices are "throw money away on an apartment" vs. "buy land for reals and actually own something", it's a pretty easy decision.

We got the problem of high property taxes where I'm at...

[duffman1278]

I would think that you wait a bit since I think they'll start lowering interest rates more to get money back into recirculation to try and somewhat counter this recession.

[BustedS13]

We got the problem of high property taxes where I'm at...

we're looking at under two grand a year on this one.

[drift freaq]

i see where your getting at into this but theres thousands of houses just there with a for sale sign on the front lawn and many people losing their homes..


this is insane!

may this be something like a DEPRESSION?

that would be scary as in many construction workers and mechanics have been getting laid off

This is nowhere near a depression. There would have to be 30% unemployment to equal a depression. With that said it is a Recession and these things do turn around.

Now UDSDM180sx has a pretty good tap on whats going on. He should he is in the business. Basically what he said is true once all the mortgages that were written in 2005 at the height of housing market reset then you will see the bottom. At the earliest thats roughly July of this year though that would be the start of the bottom not the end.

The end would probably not roll around till the end of this. Now Recovery could happen in 2009 though it will be slow in my opinion. As far as what some people are saying different people have different opinions I base mine on following economic indicators. AKA part of what was stated above, whats going on on housing starts , homebuilders, credit situations, bank holdings etc...

For those people talking about getting loans right now its really tough. A lot of lenders are just not lending. Regardless of good credit. In a word save your money, keep your credit up and if at all possible when do buy, use as much cash as possible.

Go for a 30 year fixed rate. Do not look at your house as a way to make money look at it as security and a place your going to live for a long time and have a family.

To many people of late bought houses, trying to flip them and make money taking adjustable rates, because they thought they could sell them off in a few years at a profit.
There also were the people that took out second mortgages and spent the equity on trips and boats and other things thinking their house value would go up covering it.

Others while making good money took loans out for houses that were technically in a range that could outstrip their income, aka Jumbo loans. These people are defaulting as well not as much as the sub primes but its the last sector to fall and it will fall hard.

I live in an area thats full of Jumbo loans and its just now starting to decline in values while other areas have already fallen. Plus house's are not appraising at their escrows. I.E. buy a house now and theirs a good chance it will appraise below your purchase price. take this for what its worth.

All factors stated above is the reason you should look at a house the way your parents did. They bought it to live in it and raise a family. not make a killing and sell.

[thedecapitator]

This is nowhere near a depression. There would have to be 30% unemployment to equal a depression. With that said it is a Recession and these things do turn around.

Now UDSDM180sx has a pretty good tap on whats going on. He should he is in the business. Basically what he said is true once all the mortgages that were written in 2005 at the height of housing market reset then you will see the bottom. At the earliest thats roughly July of this year though that would be the start of the bottom not the end.

The end would probably not roll around till the end of this. Now Recovery could happen in 2009 though it will be slow in my opinion. As far as what some people are saying different people have different opinions I base mine on following economic indicators. AKA part of what was stated above, whats going on on housing starts , homebuilders, credit situations, bank holdings etc...

For those people talking about getting loans right now its really tough. A lot of lenders are just not lending. Regardless of good credit. In a word save your money, keep your credit up and if at all possible when do buy, use as much cash as possible.

Go for a 30 year fixed rate. Do not look at your house as a way to make money look at it as security and a place your going to live for a long time and have a family.

To many people of late bought houses, trying to flip them and make money taking adjustable rates, because they thought they could sell them off in a few years at a profit.
There also were the people that took out second mortgages and spent the equity on trips and boats and other things thinking their house value would go up covering it.

Others while making good money took loans out for houses that were technically in a range that could outstrip their income, aka Jumbo loans. These people are defaulting as well not as much as the sub primes but its the last sector to fall and it will fall hard.

I live in an area thats full of Jumbo loans and its just now starting to decline in values while other areas have already fallen. Plus house's are not appraising at their escrows. I.E. buy a house now and theirs a good chance it will appraise below your purchase price. take this for what its worth.

All factors stated above is the reason you should look at a house the way your parents did. They bought it to live in it and raise a family. not make a killing and sell.

great explanation and great insight......hopefully it goes the way you and usd180sx stated:)

[sideview_180sx]

and if you are like me. you aren't looking at residential, you are looking at commercial. IE apartments. A house further up the road was going for 800K during the boom. i think now its mite be around 680K. it was a 6 bedroom 5.5 bathroom, extended 4-car garage(essentially 6+ since the depth of the garage you could park 2 in a row) a casitas and 3800sqft. all on .48 acre lot. I sooo want the house(it was a model home)

[kornaz]

Great post drift freaq. Actually same thing happened here with my 'rents. When they bought the house, they started flipping it, the market went up pretty good, and THEN, it went down. Now, it's like not worth to sell it. Anyways, we know whose fault it is. Many factors involved. One of them, is the name of the thing that grows down south. :D Lol.

[BOROSUN]

the news seems to talk about only socal home price drop.

sf area/siliconvaylley looks to be steady except for stockton,sac,oakland all have high foreclosure.

[SimpleS14]

Yea, drift freaq made a good post...I would also like to add appraisal and mortgage fraud into the mix that contributed to this mortgage market as well. The CEO of the company I work for (Freddie Mac) predicts that the prices for homes will decline another 15% and bottom out in 2009. Bold guess to make, but I'm guessing he is just preparing for worse case scenario.

Now is a good time to buy a house…however, only buy it for long term (more than 5 years) and don’t think about depreciation. I would buy a house now, but I don't know if I will be in this state three years from now and I rather not rent it out.

It kinda urks me on how this market just blew up and was getting out of control…debts going all over the place and now the Feds have to clean up the mess of others. IMO…if the market continues as is…the Feds will start to impose some regulations on banks/mortgage lenders.

[s13playa]

how much longer do you guys think the home prices in california will keep on plummeting down??

theyre offering in some cases a 40,000 downpayment on 180k-200k homes up on riverside, lake elsinore, perris, and mo-val.

and the end monthly payment would be from 750- 1100

just wondering if this is the RIGHT time to buy a home.

I cant really see the housing market go up anytime soon...

do you guys think the prices may go back down to 115k? like they were couple years back ?

just wondering what you guys think...:hs:

maybe im doing something wrong, cause i was casually looking for a house in the sd area. i cant find anything under 250k unless its a condo or manufactured home.

[exitspeed]

Once again DriftFreaq, great post.

My wife and I are both in the real estate biz. She's an agent and I work in the corp setting.

While it's bad here in WI, it's nothing like it is in CA, FL, Chicago area. While we saw values increase they weren't to unrealistic value's like you guys saw. Therefore we are more at what I'd call a "normal market" right now. You're probably not going to list your home and have 3 offers competing the day after it goes on the market. You're also not going to get $30k more for then what you paid 1 year later when you haven't done a single renovation. That was what was happening in 05 for us.

To answer the OP question, YES this is the time to buy. If you qualify. Like others have said, loans are a LOT harder to get right now. And rightfully so.

My advice is to purchase modest and most importantly PUT AS MUCH OF A DOWN PAYMENT DOWN AS YOU CAN. Then stay.

My prediction is a little more optimistic then most. I see the market being stale/slow being short term. The event I think will change the market again is the presidential election. It's not going to be instant by any means, but I think we will see the market becoming quit a bit more positive a year or maybe less after the election.

[ronmcdon]

that's about right for San Diego. its not too bad at all actually. feds will cut rates again this year, and possibly it won't stop there. interest rates will probably be the lowest they'll be by the end of this year. when they start raising, it's difficult to say.

I think housing prices will continue to drop regardless. Banks are going to have to be forced to sell them for cheaper as inventory increases. Personally I'd wait till the end of this yr to buy if you want to play it safe. I'm going to wait till at least mid-late 2009 at least. I'd rather have higher interest rates, but pay lower pricing costs, and land taxes. Interest rates are significant, but they're not everything.

I could be entirely off, but that's my hunch anyways.

[Bobafreak]

Yeah alot of homes are going up for sale. Its a good thing i guess but i think its going to drop down alot more.

[eastcoastS14]

no offense but I hope the cali housing market continues to go down the tubes for another few years....so I can graduate and get a job then move there and get a decent house




....and yeah for the record......cali needs to chill the fuck out with its housing prices, just looking at shit on santa barbara craigslist....HOLY FUCK! 600k for a 2bd lol...160k for a mobil home??? GTFO

[drift freaq]

no offense but I hope the cali housing market continues to go down the tubes for another few years....so I can graduate and get a job then move there and get a decent house




....and yeah for the record......cali needs to chill the fuck out with its housing prices, just looking at shit on santa barbara craigslist....HOLY FUCK! 600k for a 2bd lol...160k for a mobil home??? GTFO

East Coast I could not agree with you more here. I have felt that housing here California has been out of control for several years.

[usdm180sx]

I can't wait. A friend of mine is a direct lender and is offering a new type of loan that applies payments to the principal unlike a traditional 30 year fixed where during the first half of the loan most of the payment goes to interest. With this loan we will be able to pay off our $250,000 mortgage in 7-8 years.

Once the loan is paid off it becomes a line of credit equal to 80% ltv of the home's appraised value for the remaining 27 years. You gotta have a mid 720 score and 80% ltv max to qualify.

[unwed_transient]

Once all the 2-3 year sub-prime and option arm mortgages come due (Should be after 2008-2009 as the bulk of them were funded in 2005) then short sales and foreclosures will peak. Banks will then sell their inventories of foreclosed homes on the open market to minimize thier overhead (homes without loans = no interest income) which will cause home prices to bottom out. Between now and then buying a home will only get better.i've been doing some research and what you're saying seems to correlate with what i've been reading. i'm planning to buy end of this year/early next. probably going to go with a condo for the first home but if i can find a decent house that maybe needs a little work in a decent neighborhood, i'll go that route.

as long as rates stay low that is, which they should.

[exitspeed]

The prices of homes in Cali is retarded. I'd watch those shows on HGTV and that and compare Cali homes to my own. My home would be like $2mil there. LOL.

[eastcoastS14]

yeah I mean dont get me wrong we have a bit of that in the north east...Its incredibly expensive to live in boston...I guess NYC is the east coast equivilent to socal

I went to visit my cousin in Savannah GA and housing down south is sooooo cheap compared to what it is up here.....and take the 2mil u were gonna spend on a house in socal and buy a mansion down in GA or NC or somethin

[1ZlowZ]

Houses went down by a lot mines is a perfect example. We bought the house for 355,000 2 years ago. Today the house is worth 145,500. It has 4 bed rooms, 2 full bath rooms and, 1 acre of land. House was made in 2004. Where I live I think its the best place to buy a house, lots of tranquility. =]

Also, houses being cheaper in different states is because of jobs, we were going to move to Texas but, no jobs for what we qualified on. Lesser jobs cheaper stuff because lesser people to spend money.

[thedecapitator]

Houses went down by a lot mines is a perfect example. We bought the house for 355,000 2 years ago. Today the house is worth 145,500. It has 4 bed rooms, 2 full bath rooms and, 1 acre of land. House was made in 2004. Where I live I think its the best place to buy a house, lots of tranquility. =]

Also, houses being cheaper in different states is because of jobs, we were going to move to Texas but, no jobs for what we qualified on. Lesser jobs cheaper stuff because lesser people to spend money.


damn 145k for 4 bedroom and 2 bathroom sounds too good to be true.
i need to look it up on the internet

and for other people wanting to know where i get the 160k houses or the 180k houses theyre out there but theyre on the developing cities and well they lack emp. , stores are kind of far away but they are a growing community..

ex. Lake Elsinore, Riverside, Corona, Perris and Moreno Valley

i usually google " lake elsinore real estate" and it shows the diff price ranges with pics of the homes and how much downpayment is needed and the monthly payment...

[ByeByeSti]

prices of property has gone down everywhere.... here in new hampshire my parents had our house and property appraised a few years back at 2.5million... then this past year once again re-appraised it came out to 750k... thats 9 bedrooms, 2 living rooms, 3 bathrooms, pool room, hot tub, kitchen, office, 2 car garage, 3 decks, wrap around concrete patio, extra empty kitchen type room, 158 acres of land, and a 50x80 shop with 3 bays.... oh and the town is a small town with high income for the most part. and less the 1 mile from the lake

oh and we built it in 1989

[obsolete]

what are you doing on zilvia? hahaha...wait, your house depreciated 70% in a few years?

[exitspeed]

Houses went down by a lot mines is a perfect example. We bought the house for 355,000 2 years ago. Today the house is worth 145,500. It has 4 bed rooms, 2 full bath rooms and, 1 acre of land. House was made in 2004. Where I live I think its the best place to buy a house, lots of tranquility. =]

Also, houses being cheaper in different states is because of jobs, we were going to move to Texas but, no jobs for what we qualified on. Lesser jobs cheaper stuff because lesser people to spend money.

Wow that really really sucks. Talk about being upside down.

We bought our house for $215 in 06. Fair market value right now is 280+. But we did an entire high end kitchen remodel, bath remodel, and remodeled most of the main floor. Once the lower level and master bath is done we'll be well over $300. And that's in THIS market. Not 2005's.

[SiI40sx]

I cant imagine living anywhere far east of LA. I work in Rosemead plan on staying here for the next few years. I really want to buy a house with my dad but there's no chance in hell I'd qualify for the loan. And its so stupid, there's all kinds of houses around the area RENTING for more or as much as a mortgage.

[SimpleS14]

prices of property has gone down everywhere.... here in new hampshire my parents had our house and property appraised a few years back at 2.5million... then this past year once again re-appraised it came out to 750k... thats 9 bedrooms, 2 living rooms, 3 bathrooms, pool room, hot tub, kitchen, office, 2 car garage, 3 decks, wrap around concrete patio, extra empty kitchen type room, 158 acres of land, and a 50x80 shop with 3 bays.... oh and the town is a small town with high income for the most part. and less the 1 mile from the lake

oh and we built it in 1989

That sounds like a ballin house....I would never sell that or worry about its market value. I would definitely keep it in the family for generations.

Interesting quote I read on Montey Fool:

Like a parent with children, you can't keep giving and giving, or the kids will never learn to fend for themselves. The same goes for our economy. The Fed cannot continue to bail out those who made short-sighted decisions. A lot of people screwed up, and a lot of people should suffer the consequences. If they don't learn their lesson, they'll just do it again.

http://www.fool.com/investing/dividends-income/2008/03/19/just-stop-already-bernanke.aspx?source=iflfollnk0000003

[eastcoastS14]

prices of property has gone down everywhere.... here in new hampshire my parents had our house and property appraised a few years back at 2.5million... then this past year once again re-appraised it came out to 750k... thats 9 bedrooms, 2 living rooms, 3 bathrooms, pool room, hot tub, kitchen, office, 2 car garage, 3 decks, wrap around concrete patio, extra empty kitchen type room, 158 acres of land, and a 50x80 shop with 3 bays.... oh and the town is a small town with high income for the most part. and less the 1 mile from the lake

oh and we built it in 1989

new england zilvia house party??? where in NH do u live??