Confused with the current market

[an]

[quote=sdcellar][quote=CA renter]Although many of us would like to think we’re buying our “last” house, life has a tendency to be unpredictable, and any number of events — like changes in family formation (marriage, divorce kids, in-laws, etc.), job loss or transfer, etc.– might force someone to have to sell. Better to have bought near the low, so that you are always able to sell at any point in the future.[/quote]

Agree that it’s difficult (impossible?) for anyone to see 30 years out. I tend to think a good approach is to make sure things work for you 7-10 years out with somewhat challenging assumptions (e.g. value drops another 15-20%, can’t re-fi, must sell, etc.). If that can work, then it typically only gets better from there.[/quote]
First and foremost, planning to pay off the house and keep it forever doesn’t mean that it has to be your forever house. I agree with both of you that life can always throw you curve balls and you have to be prepare for them. That’s why rent vs buy is very important in my eyes. I have no plan of selling any of the house I buy. I plan to buy, live in it for 7-10 years while I save enough down payment for the next one. Then rent out the current one. Rinse and repeat until I’m ready to retire. The purchases I made and will be making have to be cheaper than rent and have to be handled by 1 income, just in case one of us get laid off. If you can rent it out for a profit, job loss, divorce, etc. wouldn’t affect you as much since you won’t need to sell. If the house you purchased can be handled by one income, even if you get divorce, one of you can pay out the other and the one w/ the house can still easily handle the payment.

[Anonymous]

Hi 4S,
Just writing to let you know we are in the same exact boat. We are 1st time buyers looking in the RB, CMR, and Carmel Valley areas. We have been looking for over 10 months now. We have submitted 12 offers and nothing. We go over list and nothing. Our issue is that we have an FHA loan and we are competing against all the cash. I am about ready to give up. On the bright side, every month we don’t buy we save and build up our down payment. Good luck!

[Anonymous]

Hi 4S,
Just writing to let you know we are in the same exact boat. We are 1st time buyers looking in the RB, CMR, and Carmel Valley areas. We have been looking for over 10 months now. We have submitted 12 offers and nothing. We go over list and nothing. Our issue is that we have an FHA loan and we are competing against all the cash. I am about ready to give up. On the bright side, every month we don’t buy we save and build up our down payment. Good luck!

[Anonymous]

Hi 4S,
Just writing to let you know we are in the same exact boat. We are 1st time buyers looking in the RB, CMR, and Carmel Valley areas. We have been looking for over 10 months now. We have submitted 12 offers and nothing. We go over list and nothing. Our issue is that we have an FHA loan and we are competing against all the cash. I am about ready to give up. On the bright side, every month we don’t buy we save and build up our down payment. Good luck!

[Anonymous]

Hi 4S,
Just writing to let you know we are in the same exact boat. We are 1st time buyers looking in the RB, CMR, and Carmel Valley areas. We have been looking for over 10 months now. We have submitted 12 offers and nothing. We go over list and nothing. Our issue is that we have an FHA loan and we are competing against all the cash. I am about ready to give up. On the bright side, every month we don’t buy we save and build up our down payment. Good luck!

[Anonymous]

Hi 4S,
Just writing to let you know we are in the same exact boat. We are 1st time buyers looking in the RB, CMR, and Carmel Valley areas. We have been looking for over 10 months now. We have submitted 12 offers and nothing. We go over list and nothing. Our issue is that we have an FHA loan and we are competing against all the cash. I am about ready to give up. On the bright side, every month we don’t buy we save and build up our down payment. Good luck!

[Scarlett]

Forgive me for a dumb question, theoretical speculation is great, but why not envision a scenarion in which the rate does go up 2-4%, but guess what, the prices don’t go down nearly as much to make the waiting for higher rate/lower price worth your while? (in which case it would be better to buy now w/ 20% down – not talking large downs). I am just asking, isn’t that a good possibility? Is that a carved in stone rule??

We’ve already seen that the overall prices didn’t fall back to fundamentals (in the areas mentioned by OP) and they are rising yet again. Just a couple % increase in interest rate may slow then down or stop them, but may not lower the price much….in these areas (and 20% down)…. I am just saying….

[Scarlett]

Forgive me for a dumb question, theoretical speculation is great, but why not envision a scenarion in which the rate does go up 2-4%, but guess what, the prices don’t go down nearly as much to make the waiting for higher rate/lower price worth your while? (in which case it would be better to buy now w/ 20% down – not talking large downs). I am just asking, isn’t that a good possibility? Is that a carved in stone rule??

We’ve already seen that the overall prices didn’t fall back to fundamentals (in the areas mentioned by OP) and they are rising yet again. Just a couple % increase in interest rate may slow then down or stop them, but may not lower the price much….in these areas (and 20% down)…. I am just saying….

[Scarlett]

Forgive me for a dumb question, theoretical speculation is great, but why not envision a scenarion in which the rate does go up 2-4%, but guess what, the prices don’t go down nearly as much to make the waiting for higher rate/lower price worth your while? (in which case it would be better to buy now w/ 20% down – not talking large downs). I am just asking, isn’t that a good possibility? Is that a carved in stone rule??

We’ve already seen that the overall prices didn’t fall back to fundamentals (in the areas mentioned by OP) and they are rising yet again. Just a couple % increase in interest rate may slow then down or stop them, but may not lower the price much….in these areas (and 20% down)…. I am just saying….

[Scarlett]

Forgive me for a dumb question, theoretical speculation is great, but why not envision a scenarion in which the rate does go up 2-4%, but guess what, the prices don’t go down nearly as much to make the waiting for higher rate/lower price worth your while? (in which case it would be better to buy now w/ 20% down – not talking large downs). I am just asking, isn’t that a good possibility? Is that a carved in stone rule??

We’ve already seen that the overall prices didn’t fall back to fundamentals (in the areas mentioned by OP) and they are rising yet again. Just a couple % increase in interest rate may slow then down or stop them, but may not lower the price much….in these areas (and 20% down)…. I am just saying….

[Scarlett]

Forgive me for a dumb question, theoretical speculation is great, but why not envision a scenarion in which the rate does go up 2-4%, but guess what, the prices don’t go down nearly as much to make the waiting for higher rate/lower price worth your while? (in which case it would be better to buy now w/ 20% down – not talking large downs). I am just asking, isn’t that a good possibility? Is that a carved in stone rule??

We’ve already seen that the overall prices didn’t fall back to fundamentals (in the areas mentioned by OP) and they are rising yet again. Just a couple % increase in interest rate may slow then down or stop them, but may not lower the price much….in these areas (and 20% down)…. I am just saying….

[infoseeker]

I have also been patiently looking at these areas for nearly a year… I feel the last 3 months was pretty bad as far as inventory. Also certain homes in 4S brought so much traffic for open houses that parking was an issue :). However I am seeing a bit more inventory in the last couple of weeks (in our search range). FWIW, zestimates are also reducing. Hold on.. IMO its always better to shop for a home in the winter.

[infoseeker]

I have also been patiently looking at these areas for nearly a year… I feel the last 3 months was pretty bad as far as inventory. Also certain homes in 4S brought so much traffic for open houses that parking was an issue :). However I am seeing a bit more inventory in the last couple of weeks (in our search range). FWIW, zestimates are also reducing. Hold on.. IMO its always better to shop for a home in the winter.

[infoseeker]

I have also been patiently looking at these areas for nearly a year… I feel the last 3 months was pretty bad as far as inventory. Also certain homes in 4S brought so much traffic for open houses that parking was an issue :). However I am seeing a bit more inventory in the last couple of weeks (in our search range). FWIW, zestimates are also reducing. Hold on.. IMO its always better to shop for a home in the winter.

[infoseeker]

I have also been patiently looking at these areas for nearly a year… I feel the last 3 months was pretty bad as far as inventory. Also certain homes in 4S brought so much traffic for open houses that parking was an issue :). However I am seeing a bit more inventory in the last couple of weeks (in our search range). FWIW, zestimates are also reducing. Hold on.. IMO its always better to shop for a home in the winter.

[Author]

Posts