$570K for a Mira Mesa house?

[barnaby33]

I liked the simple rate example above. AN, you recently bought. I perceive a none-too-subtle shift to a more defensive posture in your posting. Most of us however have the same bunker mentality as before.

The odds of rates going up to 14% are about as high as prices staying where they are, nearly zero. Rates will stay low until our creditors say no mas, which appears is several years off. Meanwhile job losses will pick up steam and housing prices will continue to decline as lending standards perform the same task that higher interest rates did in previous cycles. Namely shrink the buyer pool.

I for one would love to see rates shoot up, but The govt is literally pissing into a black hole the money it is printing. This money will exhibit itself as soon as the asset deflation has unwound but I’m not counting on it to get me a home I can live comfortably in at a price I can afford.

In summary 570 seems too high to me for any home in MM. Then again, my stated housing preferences are very different from most here.
Josh

[an]

barnaby33, you’re not seeing me defending my decision. I really don’t need to defend my decision since it’s my money I’m spending. All I’m trying to do is present the other point of view. I don’t like the idea of saying price will go to $x w/out saying what rates will be at when $x occur. $x and y% in rate will determine affordability. Either one of those 2 variable will make a home unaffordable.

I would love to see rates shoot up too.

[an]

barnaby33, you’re not seeing me defending my decision. I really don’t need to defend my decision since it’s my money I’m spending. All I’m trying to do is present the other point of view. I don’t like the idea of saying price will go to $x w/out saying what rates will be at when $x occur. $x and y% in rate will determine affordability. Either one of those 2 variable will make a home unaffordable.

I would love to see rates shoot up too.

[an]

barnaby33, you’re not seeing me defending my decision. I really don’t need to defend my decision since it’s my money I’m spending. All I’m trying to do is present the other point of view. I don’t like the idea of saying price will go to $x w/out saying what rates will be at when $x occur. $x and y% in rate will determine affordability. Either one of those 2 variable will make a home unaffordable.

I would love to see rates shoot up too.

[an]

barnaby33, you’re not seeing me defending my decision. I really don’t need to defend my decision since it’s my money I’m spending. All I’m trying to do is present the other point of view. I don’t like the idea of saying price will go to $x w/out saying what rates will be at when $x occur. $x and y% in rate will determine affordability. Either one of those 2 variable will make a home unaffordable.

I would love to see rates shoot up too.

[an]

barnaby33, you’re not seeing me defending my decision. I really don’t need to defend my decision since it’s my money I’m spending. All I’m trying to do is present the other point of view. I don’t like the idea of saying price will go to $x w/out saying what rates will be at when $x occur. $x and y% in rate will determine affordability. Either one of those 2 variable will make a home unaffordable.

I would love to see rates shoot up too.

[sdcellar]

[quote=asianautica]Can you be sure it’ll happen in 2 years? What happen if won’t get to that price for another 5 years? How much would you be paying in rent vs buying? I’m in the camp of government over stepping and cause major inflation. Also, long term average rates are around 8%. So, it’s not out of the range of possibility either. What if it goes to 8+% instead by the time price actually get down to 420k? Right now, you can get down as low as 4.375% w/ some points.[/quote]

Hey, I’m just using your numbers. No doubt one can screw with the knobs until they get the answer they want. I was just responding to your suggestion that rates going to 7% would more than negate the savings in home price–clearly not the case.

But heck, I’m not trying to pick on you, I’m really responding to my mother-in-law, who said to me the other day, “sdcellar, I’ve been meaning to talk to you about this. You know, you were right about house prices, but you’ve got to buy this year. The interest rates are just too good.”

As with all things, one must look at the complete picture (or as best you can with all things in the future).

[sdcellar]

[quote=asianautica]Can you be sure it’ll happen in 2 years? What happen if won’t get to that price for another 5 years? How much would you be paying in rent vs buying? I’m in the camp of government over stepping and cause major inflation. Also, long term average rates are around 8%. So, it’s not out of the range of possibility either. What if it goes to 8+% instead by the time price actually get down to 420k? Right now, you can get down as low as 4.375% w/ some points.[/quote]

Hey, I’m just using your numbers. No doubt one can screw with the knobs until they get the answer they want. I was just responding to your suggestion that rates going to 7% would more than negate the savings in home price–clearly not the case.

But heck, I’m not trying to pick on you, I’m really responding to my mother-in-law, who said to me the other day, “sdcellar, I’ve been meaning to talk to you about this. You know, you were right about house prices, but you’ve got to buy this year. The interest rates are just too good.”

As with all things, one must look at the complete picture (or as best you can with all things in the future).

[sdcellar]

[quote=asianautica]Can you be sure it’ll happen in 2 years? What happen if won’t get to that price for another 5 years? How much would you be paying in rent vs buying? I’m in the camp of government over stepping and cause major inflation. Also, long term average rates are around 8%. So, it’s not out of the range of possibility either. What if it goes to 8+% instead by the time price actually get down to 420k? Right now, you can get down as low as 4.375% w/ some points.[/quote]

Hey, I’m just using your numbers. No doubt one can screw with the knobs until they get the answer they want. I was just responding to your suggestion that rates going to 7% would more than negate the savings in home price–clearly not the case.

But heck, I’m not trying to pick on you, I’m really responding to my mother-in-law, who said to me the other day, “sdcellar, I’ve been meaning to talk to you about this. You know, you were right about house prices, but you’ve got to buy this year. The interest rates are just too good.”

As with all things, one must look at the complete picture (or as best you can with all things in the future).

[sdcellar]

[quote=asianautica]Can you be sure it’ll happen in 2 years? What happen if won’t get to that price for another 5 years? How much would you be paying in rent vs buying? I’m in the camp of government over stepping and cause major inflation. Also, long term average rates are around 8%. So, it’s not out of the range of possibility either. What if it goes to 8+% instead by the time price actually get down to 420k? Right now, you can get down as low as 4.375% w/ some points.[/quote]

Hey, I’m just using your numbers. No doubt one can screw with the knobs until they get the answer they want. I was just responding to your suggestion that rates going to 7% would more than negate the savings in home price–clearly not the case.

But heck, I’m not trying to pick on you, I’m really responding to my mother-in-law, who said to me the other day, “sdcellar, I’ve been meaning to talk to you about this. You know, you were right about house prices, but you’ve got to buy this year. The interest rates are just too good.”

As with all things, one must look at the complete picture (or as best you can with all things in the future).

[sdcellar]

[quote=asianautica]Can you be sure it’ll happen in 2 years? What happen if won’t get to that price for another 5 years? How much would you be paying in rent vs buying? I’m in the camp of government over stepping and cause major inflation. Also, long term average rates are around 8%. So, it’s not out of the range of possibility either. What if it goes to 8+% instead by the time price actually get down to 420k? Right now, you can get down as low as 4.375% w/ some points.[/quote]

Hey, I’m just using your numbers. No doubt one can screw with the knobs until they get the answer they want. I was just responding to your suggestion that rates going to 7% would more than negate the savings in home price–clearly not the case.

But heck, I’m not trying to pick on you, I’m really responding to my mother-in-law, who said to me the other day, “sdcellar, I’ve been meaning to talk to you about this. You know, you were right about house prices, but you’ve got to buy this year. The interest rates are just too good.”

As with all things, one must look at the complete picture (or as best you can with all things in the future).

[sdcellar]

[quote=asianautica]I would love to see rates shoot up too.[/quote]

Why is that? Do you have a lot of cash at this point, or is it because if things were working correctly, it should mean income increases as well?

[sdcellar]

[quote=asianautica]I would love to see rates shoot up too.[/quote]

Why is that? Do you have a lot of cash at this point, or is it because if things were working correctly, it should mean income increases as well?

[sdcellar]

[quote=asianautica]I would love to see rates shoot up too.[/quote]

Why is that? Do you have a lot of cash at this point, or is it because if things were working correctly, it should mean income increases as well?

[sdcellar]

[quote=asianautica]I would love to see rates shoot up too.[/quote]

Why is that? Do you have a lot of cash at this point, or is it because if things were working correctly, it should mean income increases as well?

[Author]

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