I think that just about everyone on this forum agrees that there will be a lot of houses on the market due to foreclosures, sellers who have to sell, etc. What we have to keep in perspective is the huge decrease in available, qualified buyers in relationship to the amount of inventory. Unless a whole new round of creative loan products for deadbeats hit the market, it’s going to take quite a while to get the inventory in line. I believe that you shouldn’t buy a home until late 2010 (at the earliest) and that the bottom won’t actually be seen until late 2011 or 2012 (if you want to pay the lowest price. Keep in mind that if you miss the bottom by just $50k, your taxes on that extra $50k will stay with you as long as you own that house. An extra $500 per year (if you stay in the house for 10 years) is $5000 more than you would have had to pay if you just wait until you know that the bottom has settled. The chances that prices will start ramping up again quickly after the bottom has revealed itself are slim to none………..so you’ll have plenty of time to look around and find exactly what you want/where you want…….. if you have a 20% down payment plus closing costs and a good credit score. Bottom line: There’s no reason to rush to be a homeowner anywhere in CA before you are convinced that the bottom has revealed itself.
