Confused with the current market

[pemeliza]

“I think prices will get cut in half again. ”

50% off of houses already 50% from peak would be 75% off peak. That would put us into mid 80’s to late 80’s nominal pricing. Recall at this time interest rates were 10+% and you could buy a nice home in La Jolla Farms for well under 1 million. I don’t see the government pulling their support out from under the mortgage market until the risk premimum has been severely diminished. I think this will happen when the economy is robust again at which point housing in SD will have stabilized and likely be moving up.

I do agree that the economy is awful and that the bubble has done incredible damage to the short term health of SD real estate. Personally, I could see most housing go to 00-01 nominal prices but not 87-88 nominal prices which are at the extreme end of some of the bearish views on the board.

I recently bought at probably an ’02 price so I full well expect that my house will drop in value before it starts to rise. For me it came down to really wanting a particular neighborhood that is hard to get into at my price point.

[patientrenter]

[quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]

Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.

[patientrenter]

[quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]

Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.

[patientrenter]

[quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]

Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.

[patientrenter]

[quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]

Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.

[patientrenter]

[quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]

Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.

[an]

[quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.

[an]

[quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.

[an]

[quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.

[an]

[quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.

[an]

[quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.

[Scarlett]

[quote=patientrenter][quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]

Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.[/quote]

What do you mean? Is it better to rent for the rest of my life? I don’t think so. Might as well pay the mortgage and own the house in the end. I really got tired of renting not-so-great places for 2500 a month, when that could be my mortgage. So if I can afford to rent, then I can afford to buy at this monthly payment, won’t you agree?

FYI – I am looking for a house price no more than 3x our gross income, with a debt to gross income ratio less than 30% and with 20% downpayment . So I don’t understand why you say I can’t pay for it or that I shouldn’t be “allowed” to buy it. Do you mean pay all cash???

If a couple of professionals with PhD degrees and successful careers cannot afford a house when they are in their forties and have finally 170K income, then, yeah, the system is nuts, I agree. When I grew up, people like us, at our age, were well settled in a decent house.

[Scarlett]

[quote=patientrenter][quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]

Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.[/quote]

What do you mean? Is it better to rent for the rest of my life? I don’t think so. Might as well pay the mortgage and own the house in the end. I really got tired of renting not-so-great places for 2500 a month, when that could be my mortgage. So if I can afford to rent, then I can afford to buy at this monthly payment, won’t you agree?

FYI – I am looking for a house price no more than 3x our gross income, with a debt to gross income ratio less than 30% and with 20% downpayment . So I don’t understand why you say I can’t pay for it or that I shouldn’t be “allowed” to buy it. Do you mean pay all cash???

If a couple of professionals with PhD degrees and successful careers cannot afford a house when they are in their forties and have finally 170K income, then, yeah, the system is nuts, I agree. When I grew up, people like us, at our age, were well settled in a decent house.

[Scarlett]

[quote=patientrenter][quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]

Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.[/quote]

What do you mean? Is it better to rent for the rest of my life? I don’t think so. Might as well pay the mortgage and own the house in the end. I really got tired of renting not-so-great places for 2500 a month, when that could be my mortgage. So if I can afford to rent, then I can afford to buy at this monthly payment, won’t you agree?

FYI – I am looking for a house price no more than 3x our gross income, with a debt to gross income ratio less than 30% and with 20% downpayment . So I don’t understand why you say I can’t pay for it or that I shouldn’t be “allowed” to buy it. Do you mean pay all cash???

If a couple of professionals with PhD degrees and successful careers cannot afford a house when they are in their forties and have finally 170K income, then, yeah, the system is nuts, I agree. When I grew up, people like us, at our age, were well settled in a decent house.

[Scarlett]

[quote=patientrenter][quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]

Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.[/quote]

What do you mean? Is it better to rent for the rest of my life? I don’t think so. Might as well pay the mortgage and own the house in the end. I really got tired of renting not-so-great places for 2500 a month, when that could be my mortgage. So if I can afford to rent, then I can afford to buy at this monthly payment, won’t you agree?

FYI – I am looking for a house price no more than 3x our gross income, with a debt to gross income ratio less than 30% and with 20% downpayment . So I don’t understand why you say I can’t pay for it or that I shouldn’t be “allowed” to buy it. Do you mean pay all cash???

If a couple of professionals with PhD degrees and successful careers cannot afford a house when they are in their forties and have finally 170K income, then, yeah, the system is nuts, I agree. When I grew up, people like us, at our age, were well settled in a decent house.

[Author]

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