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patb.
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February 24, 2013 at 11:16 AM #20550February 24, 2013 at 11:32 AM #760044
spdrun
ParticipantRenting? How about buying in markets that are still depressed and either flipping or renting to others? There are still a lot of people who can’t qualify to buy…
February 24, 2013 at 12:04 PM #760045bearishgurl
ParticipantI’m starting to “downsize” and clean up/repair/renovate, etc.
Unfortunately, I can’t move for another 16+ months but I see the writing on the wall.
I don’t really like being a “landlord” but if I relocate, I’ll just hire a PM Co if I decide to rent out my home instead of sell it.
What I am a bit concerned about is, “What will I have to pay for a (~1600 sf) replacement home?” I’m considering mountain towns with 1K to 55K people.
Hopefully, the exodus of “boomers” from cities won’t drive up the prices in these areas, as well. In some mtn resort areas, the residential RE prices have already doubled in the past ~15 years.
February 24, 2013 at 12:25 PM #760046ParticipantI glanced over the article and wonder if these fast-selling (outlying) new communities in the PHX area will lift ALL boats (new and old) in PHX.
Are buyers just flocking to the *new* because it is there? Many major cities aren’t allowing any building right now, ran out of land for subdivisions long ago or it doesn’t make sense, financially, for builders to enter a particular urban market.
I DO feel buyers flock to the *new,* no matter WHERE it’s located. ESPECIALLY younger buyers.
It will be interesting to see how this latest “building boom” affects home values in the entire residential RE market in PHX.
February 24, 2013 at 12:52 PM #760048SK in CV
ParticipantPhx has the same inventory problem that SD has. They’re down everywhere and prices are up. What is different here is the much higher number of homeowners still underwater and the number of all cash investor buyers. What I’m guessing will happen is that prices will continue going up through the early summer. At that point, some of those cash buyers are going to take their quick profits as well as some of those underwater homeonwers bailing as their equity rises somewhere close to zero. It won’t drive prices back down, but it will increase inventories and quell the increases.
In addition, the harsh winters in the east as well as the still depressed prices (in comparison to 5 or 6 years ago) will keep old people coming here from colder climates. (As long as they don’t hear about the snow storm we got here this week.) The growth has slowed, but it hasn’t stopped.
February 24, 2013 at 10:32 PM #760054CA renter
Participant[quote=patb]
seems like time to clean up the house and get it for sale.
Hundreds of bids on property for offer, Things going over asking,
Interest rates in the sewer?Seems like it’s time to start renting again.[/quote]
Bingo, patb! Even Jim the Realtor just sent out e-mails this past week telling everyone that, “it’s a great time to sell your house!” I could not agree more.
February 25, 2013 at 9:14 AM #760058UCGal
Participant[quote=CA renter][quote=patb]
seems like time to clean up the house and get it for sale.
Hundreds of bids on property for offer, Things going over asking,
Interest rates in the sewer?Seems like it’s time to start renting again.[/quote]
Bingo, patb! Even Jim the Realtor just sent out e-mails this past week telling everyone that, “it’s a great time to sell your house!” I could not agree more.[/quote]
Looking at my hood – stuff is going pending in a week – at close to peak bubble prices. These aren’t new houses… but it’s a decent/desired neighborhood.
I was just commenting to my hubby that the bubble is back in full force.
February 25, 2013 at 9:42 AM #760060SD Realtor
ParticipantThis is all pretty much to be expected isn’t it?
We did not let the market correct properly. Instead of letting the foreclosure process run a natural course, our government said no. Sacks of money were given to banks. A large number of homes did not hit the market that should have. No inventory glut occurred. Interest rates have been pushed WAY LOWER then the bubble interest rates ever were. Many people who should have lost their home did not. Loans were modified, and in some cases reduced.
Presto we have created conditions that were even WORSE then the original conditions that led to the bubble. It perpetuates itself. Those who were underwater soon will not be as the market marches higher.
Showed a home in Scripps yesterday. After 2 days on the market it has over 20 offers.
If you are a buyer looking for a deal in the I15 corridor or Carlsbad, my advice is to either come in very strong or go rent for awhile. Conditions like this may cool down some at the end of summer, but if people are predicting a reversal of the trend, well they are flat wrong. The trend will not reverse until rates rise substantially.
February 25, 2013 at 9:50 AM #760061ParticipantThat’s what was said about NJ where the foreclosures were basically stalled by the courts in 2010-11. Now the dam is breaking. (hugs Chris “kick the bums out” Christie)
February 25, 2013 at 9:58 AM #760062
barnaby33ParticipantSo is there a part of San Diego where conditions are favorable to buying?
JoshFebruary 25, 2013 at 10:21 AM #760064ParticipantDepends WHAT you want to buy. Deals on things that cater to middle class people, read 1-2 bdr condos in average areas are still good. Not as good as last year, but they’re there.
February 25, 2013 at 10:23 AM #760065ParticipantYou have to be more specific Josh. The short answer is no. Conditions are not favorable throughout the county compared to the past few years. Not for investment grade, not for owner occupancy grade. It also goes without saying I am talking about low or middle price tiers, not the 7 figure tiers.
Second, the low rates form a double whammy because investors have nowhere to put money. Do they choose an overbought stock market or an overbought real estate market? So now you have lots of investors buying, some seasoned, many not seasoned with regard to San Diego county and that is a bad recipe to create “favorable” conditions. I saw another home purchased at trustee sale for the same sales price as it was sold on the retail market back in 05. Prices will reach an equilibrium in the short term, maybe by the end of summer maybe the end of next summer, and then return to a much more subdued appreciation rate. Right now it is legging up fast and not a good place for buyers.
February 25, 2013 at 10:32 AM #760066earlyretirement
Participant[quote=SD Realtor]You have to be more specific Josh. The short answer is no. Conditions are not favorable throughout the county compared to the past few years. Not for investment grade, not for owner occupancy grade. It also goes without saying I am talking about low or middle price tiers, not the 7 figure tiers.
Second, the low rates form a double whammy because investors have nowhere to put money. Do they choose an overbought stock market or an overbought real estate market? So now you have lots of investors buying, some seasoned, many not seasoned with regard to San Diego county and that is a bad recipe to create “favorable” conditions. I saw another home purchased at trustee sale for the same sales price as it was sold on the retail market back in 05. Prices will reach an equilibrium in the short term, maybe by the end of summer maybe the end of next summer, and then return to a much more subdued appreciation rate. Right now it is legging up fast and not a good place for buyers.[/quote]
I totally agree SD Realtor. On both the overbought levels of several investment opportunities out there.
I don’t think anyone should be rushing to buy anything. I think it’s different if you are buying something that plan to live in for the foreseeable future that you can comfortably afford and another to be jumping in on investment properties. Lots seem to be the latter picking up investment properties.
The horrible thing is for savers and retired that are getting pummeled and punished and earning anemic interest rates. I for one can’t wait for interest rates to go back up.
February 25, 2013 at 10:47 AM #760067ParticipantIf you see an investment property that can yield 7.5% or so after expenses, then why not go for it? They’re out there. One is still languishing in the ss process for me. But I made another offer on an occupied property last week that can actually yield more than 7.5%. We’ll see.
February 25, 2013 at 10:53 AM #760068Participant[quote=spdrun]If you see an investment property that can yield 7.5% or so after expenses, then why not go for it? They’re out there. One is still languishing in the ss process for me. But I made another offer on an occupied property last week that can actually yield more than 7.5%. We’ll see.[/quote]
You GO, spdrun . . . I for one am rooting for you 🙂
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