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  • January 28, 2011 at 10:29 AM #659703
    ljinvestor
    Participant

    It’s reasonable that a home in the $500k range could lose another 10% but personally I would focus on the comps in the area and try to get something that is already 10%-20% below then you don’t have to worry much about the bottom.

    Peak price means nothing and if you ever find anything at or around 2000 prices then it probably a great deal.

    January 28, 2011 at 10:36 AM #660184
    SD Realtor
    Participant

    Agreed that as long as rates stay consistent that pricing should tread water. You may see some variations but if you are shopping in the 500k range there is pretty strong demand there. At some point in time rates (in my opinion) will go up substantially but I believe that is pretty far down the road. Taking advantage of cheap cheap credit may not be a bad idea.

    If and when rates do shoot up you will see strong depreciation however it may not be proportional to the rate hikes. At some point investors will set the base due to the return they make on the investment as a rental.

    There will always be some downside risk to your purchase but the govt has displayed the will to manipulate the market and provide an artificial bottom.

    January 28, 2011 at 10:36 AM #659052
    SD Realtor
    Participant

    Agreed that as long as rates stay consistent that pricing should tread water. You may see some variations but if you are shopping in the 500k range there is pretty strong demand there. At some point in time rates (in my opinion) will go up substantially but I believe that is pretty far down the road. Taking advantage of cheap cheap credit may not be a bad idea.

    If and when rates do shoot up you will see strong depreciation however it may not be proportional to the rate hikes. At some point investors will set the base due to the return they make on the investment as a rental.

    There will always be some downside risk to your purchase but the govt has displayed the will to manipulate the market and provide an artificial bottom.

    January 28, 2011 at 10:36 AM #659856
    SD Realtor
    Participant

    Agreed that as long as rates stay consistent that pricing should tread water. You may see some variations but if you are shopping in the 500k range there is pretty strong demand there. At some point in time rates (in my opinion) will go up substantially but I believe that is pretty far down the road. Taking advantage of cheap cheap credit may not be a bad idea.

    If and when rates do shoot up you will see strong depreciation however it may not be proportional to the rate hikes. At some point investors will set the base due to the return they make on the investment as a rental.

    There will always be some downside risk to your purchase but the govt has displayed the will to manipulate the market and provide an artificial bottom.

    January 28, 2011 at 10:36 AM #659115
    SD Realtor
    Participant

    Agreed that as long as rates stay consistent that pricing should tread water. You may see some variations but if you are shopping in the 500k range there is pretty strong demand there. At some point in time rates (in my opinion) will go up substantially but I believe that is pretty far down the road. Taking advantage of cheap cheap credit may not be a bad idea.

    If and when rates do shoot up you will see strong depreciation however it may not be proportional to the rate hikes. At some point investors will set the base due to the return they make on the investment as a rental.

    There will always be some downside risk to your purchase but the govt has displayed the will to manipulate the market and provide an artificial bottom.

    January 28, 2011 at 10:36 AM #659718
    SD Realtor
    Participant

    Agreed that as long as rates stay consistent that pricing should tread water. You may see some variations but if you are shopping in the 500k range there is pretty strong demand there. At some point in time rates (in my opinion) will go up substantially but I believe that is pretty far down the road. Taking advantage of cheap cheap credit may not be a bad idea.

    If and when rates do shoot up you will see strong depreciation however it may not be proportional to the rate hikes. At some point investors will set the base due to the return they make on the investment as a rental.

    There will always be some downside risk to your purchase but the govt has displayed the will to manipulate the market and provide an artificial bottom.

    January 28, 2011 at 1:55 PM #659152
    jdsuowner
    Participant

    Can anyone comment on the effect of the reset/recasts for option arms and Alt-A that are supposedly going to happen in large amounts this year and next. How will that affect price if any?

    January 28, 2011 at 1:55 PM #659956
    jdsuowner
    Participant

    Can anyone comment on the effect of the reset/recasts for option arms and Alt-A that are supposedly going to happen in large amounts this year and next. How will that affect price if any?

    January 28, 2011 at 1:55 PM #659818
    jdsuowner
    Participant

    Can anyone comment on the effect of the reset/recasts for option arms and Alt-A that are supposedly going to happen in large amounts this year and next. How will that affect price if any?

    January 28, 2011 at 1:55 PM #660284
    jdsuowner
    Participant

    Can anyone comment on the effect of the reset/recasts for option arms and Alt-A that are supposedly going to happen in large amounts this year and next. How will that affect price if any?

    January 28, 2011 at 1:55 PM #659215
    jdsuowner
    Participant

    Can anyone comment on the effect of the reset/recasts for option arms and Alt-A that are supposedly going to happen in large amounts this year and next. How will that affect price if any?

    January 28, 2011 at 2:05 PM #659225
    Ren
    Participant

    jdsuowner, FYI, different areas rise and fall at different rates/times. Some areas have hit bottom, some haven’t. If you’re thinking of it as a home that you will be in for a very long time, that should factor into the price you’re willing to pay (a little more). You probably won’t find a great house in a great neighborhood for really cheap, but you might find a great house in a great neighborhood that you can afford, and that’s a good thing.

    [quote=SD Realtor]At some point investors will set the base due to the return they make on the investment as a rental.[/quote]

    I believe this is what happened in the inland empire. My hood (Temecula) hit bottom about the time TG bought, in my opinion. Returns were so good at those prices that they couldn’t go lower, or even stay there for long. Prices then bounced a little due to the tax incentive, but now that that’s gone, they’re settling down to a more reasonable (not crazy low) level.

    January 28, 2011 at 2:05 PM #659966
    Ren
    Participant

    jdsuowner, FYI, different areas rise and fall at different rates/times. Some areas have hit bottom, some haven’t. If you’re thinking of it as a home that you will be in for a very long time, that should factor into the price you’re willing to pay (a little more). You probably won’t find a great house in a great neighborhood for really cheap, but you might find a great house in a great neighborhood that you can afford, and that’s a good thing.

    [quote=SD Realtor]At some point investors will set the base due to the return they make on the investment as a rental.[/quote]

    I believe this is what happened in the inland empire. My hood (Temecula) hit bottom about the time TG bought, in my opinion. Returns were so good at those prices that they couldn’t go lower, or even stay there for long. Prices then bounced a little due to the tax incentive, but now that that’s gone, they’re settling down to a more reasonable (not crazy low) level.

    January 28, 2011 at 2:05 PM #660294
    Ren
    Participant

    jdsuowner, FYI, different areas rise and fall at different rates/times. Some areas have hit bottom, some haven’t. If you’re thinking of it as a home that you will be in for a very long time, that should factor into the price you’re willing to pay (a little more). You probably won’t find a great house in a great neighborhood for really cheap, but you might find a great house in a great neighborhood that you can afford, and that’s a good thing.

    [quote=SD Realtor]At some point investors will set the base due to the return they make on the investment as a rental.[/quote]

    I believe this is what happened in the inland empire. My hood (Temecula) hit bottom about the time TG bought, in my opinion. Returns were so good at those prices that they couldn’t go lower, or even stay there for long. Prices then bounced a little due to the tax incentive, but now that that’s gone, they’re settling down to a more reasonable (not crazy low) level.

    January 28, 2011 at 2:05 PM #659162
    Ren
    Participant

    jdsuowner, FYI, different areas rise and fall at different rates/times. Some areas have hit bottom, some haven’t. If you’re thinking of it as a home that you will be in for a very long time, that should factor into the price you’re willing to pay (a little more). You probably won’t find a great house in a great neighborhood for really cheap, but you might find a great house in a great neighborhood that you can afford, and that’s a good thing.

    [quote=SD Realtor]At some point investors will set the base due to the return they make on the investment as a rental.[/quote]

    I believe this is what happened in the inland empire. My hood (Temecula) hit bottom about the time TG bought, in my opinion. Returns were so good at those prices that they couldn’t go lower, or even stay there for long. Prices then bounced a little due to the tax incentive, but now that that’s gone, they’re settling down to a more reasonable (not crazy low) level.

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