Bob and Firsttimebuyer congratulations on your purchases and for the courage to post. Bob I wonder if the place you are in escrow on is one that I had been looking at….My wife and I had been eyeing a home right near Jerabak on Avenida Magnifica and it just recently went into escrow…
Anyways I think paranoid called it very well. Every single secular cycle be it the stock market or real estate is composed of cyclical trends within it. I think that is what we are experiencing and will continue to for at least a few months. However secular trends last several years so lets see what happens by summer…
Perry your posts made alot of sense…however… I think that there are more potential buyers out there then we all think. I have been renting for awhile now and am moving to my 3rd home because the owner is selling. It really is getting old and our quality of life had suffered because of it. I had submitted a lowball offer to the Scripps property I mentioned above but it was not taken. While I believe the market will continue to display a secular trend over the next several years, my strategy was similar to Bob and Firsttime, put down a large downpayment, finance the rest in a safe mortgage that I can live with. Yes the market may depreciate but I am looking for a home that will serve me for the long run. However the improvement in the quality of life would be worth it. I am not saying renting is a poor quality of life. I think it varies with the individual. Having 2 toddlers, a few dogs, cats, turtles and a live in mother in law, I can say that renting blows. I am really tired of moving and I want to live in a home where I can do things to it to make it mine. I am getting to the point where I think I am making my family suffer because of my own stubborness and that may not be fair.
So yes I will be buying before the market hits bottom and I am sure alot of those who do have the patience to wait a few years will do very well. Again I believe the secular downturn will continue but I very much understand the decisions made by Bob and Firsttime.
