San Diego Housing Bubble News and Analysis

p-dude

What's your income ?
What's your down payment ?
How long are you planning to stay in this house ?
How many months of saving you have ?

>200K if i don't loss my job
>enough down to get a comfirming rate at 5.625%
10 yrs
48 months

I think brand new ones start at $650k...that subdivision has had some downward pricing pressure. It used to start in the mid $700s.

You're paying just current market price.

I'd wait.

thanks for the inputs. The same plan sells for ~710K with additional builders' incentives. Anyone knows details on the incentives?

The builder gave away 2.5% of your purchased price for upgrading (you can have your own contractor or even DIY) and another 2.5% for incentive if you go with their preferred bank.

You can also get 1.5-2% commission split if you go with a buyer agent (negotiate with your agent and get 1/2 ~ 2/3 or even 4/5 of his/her 3% commission back).

~710K is the listed price, it's negotiable - but if you go with their listed price, you can get enough upgrades/options in return.

Personally, lily, unless you're in love with that particular unit and location, I'd probably wait.

Does that unit have upgrades already?
Does it need repair (as a repo)?

Maybe it's just mind games I'm playing with myself, but I would expect the repo to go below what you can buy new, unless it has really nice upgrades or at least something special. Also, it's the second house in from a 4 lane road.

It's not a terrible deal, but it's probably not stellar either. Have fun, whatever decision you make!

It has upgrades similar to the model home without wall paper treatments or crown molding. It needs some repairs but should not cost more than $2000. The location is not ideal. I can hear street/freeway noise when opening windows. I agree with you that it's neither stellar nor a terrible deal.

All the suggestions/info are very helpful. Many thanks to you all.

It sounds like you are buying a place that you like, but are not inlove with. You can afford it, the question is should you. What is your reason for buying? If you have kids that need a place and schools and such, then that is a decent reason and your are not getting ripped off, so ok. I wouldnt do it, but then I dont make that kinda money either.
If you are buying because you are afraid of getting priced out again, that is a HORRIBLE reason and you should run like the wind. I keep hearing that crap now and then. Think how long it took us to get where we are. Prices have been falling for nearly 2 years now in most of SD, maybe 6 months or so in CV. Do you really think that will change in 1-2 months and well start seeing appreciation again? No way, the housing market is a momentum mover, and momentum is all down.
PS, I also live near a busy road, and it sucks when I want to go to sleep at night with my window open. For those prices, I dont want to have to dream on someone elses exaust.

How reliable are buyer's agents about sharing a portion of the sales commission with the buyer? Should this be put in writing? What happens if the agent simply refuses after the home is bought?

p-dude

you seems to be able to afford this house at this price range. I would buy the house if this is EXACTLY what you are looking for without any compromise.

If I was buyer in this market, I will negotiate like hell, ready to walk if I don't get my way and have no tolerance for BS from lender, Seller or Agent. You are in driver seat
at least for next 2 years so use it wisely

rent