I am in Escrow, but extremely nervous now…what should I do.

[andymajumder]

I have been a member of this site for a while and waited for a while for home prices to be more affordable….though prices have gone down, I wouldn’t call them affordable in the areas I would like to live in.
Finally, in the past few months we started looking for a house and just went into escrow today on a 1744 sqft townhouse in RB. Basically, I am paying late 2003 price on it…and looks like maybe able to lock in a very good rate this week, (rates went down today after the markets crashed). I have 20% down and can afford this house, though I will be spending much more than i used to while renting a 2 bedroom in Mira Mesa. I have been waiting for the shadow inventory for a while but just gave in I guess…

Just read this article today
http://blogs.wsj.com/economics/2010/04/24/number-of-the-week-103-months-to-clear-housing-inventory/?source=patrick.net

Makes me very nervous about buying a home. Should I just back out? My earnest money deposit is already in escrow…..
Though I can afford it, I am really scared that with the next leg down by deposit (hard earned money for the past 5 yrs will be gone)…..

[SD Realtor]

You should be nervous. It is a very unsettling time to buy a home right now. I agree that the shadow inventory is disturbing but I am much more concerned about how things will be when the world comes to a realization that our country simply spends to much money and the bond market either collapses or interest rates move sharply upward. That will have a more profound effect, more then the inventory issue in my opinion. However the big question is, how long will this take to happen. Then again some people look at it like, they are happy to have a 5% mortgage when we could see way way way higher mortgages in the future, just how much will prices adjust is the real question and again, how long will this take. We have gotten good at kicking the can.

[SD Realtor]

You should be nervous. It is a very unsettling time to buy a home right now. I agree that the shadow inventory is disturbing but I am much more concerned about how things will be when the world comes to a realization that our country simply spends to much money and the bond market either collapses or interest rates move sharply upward. That will have a more profound effect, more then the inventory issue in my opinion. However the big question is, how long will this take to happen. Then again some people look at it like, they are happy to have a 5% mortgage when we could see way way way higher mortgages in the future, just how much will prices adjust is the real question and again, how long will this take. We have gotten good at kicking the can.

[SD Realtor]

You should be nervous. It is a very unsettling time to buy a home right now. I agree that the shadow inventory is disturbing but I am much more concerned about how things will be when the world comes to a realization that our country simply spends to much money and the bond market either collapses or interest rates move sharply upward. That will have a more profound effect, more then the inventory issue in my opinion. However the big question is, how long will this take to happen. Then again some people look at it like, they are happy to have a 5% mortgage when we could see way way way higher mortgages in the future, just how much will prices adjust is the real question and again, how long will this take. We have gotten good at kicking the can.

[SD Realtor]

You should be nervous. It is a very unsettling time to buy a home right now. I agree that the shadow inventory is disturbing but I am much more concerned about how things will be when the world comes to a realization that our country simply spends to much money and the bond market either collapses or interest rates move sharply upward. That will have a more profound effect, more then the inventory issue in my opinion. However the big question is, how long will this take to happen. Then again some people look at it like, they are happy to have a 5% mortgage when we could see way way way higher mortgages in the future, just how much will prices adjust is the real question and again, how long will this take. We have gotten good at kicking the can.

[SD Realtor]

You should be nervous. It is a very unsettling time to buy a home right now. I agree that the shadow inventory is disturbing but I am much more concerned about how things will be when the world comes to a realization that our country simply spends to much money and the bond market either collapses or interest rates move sharply upward. That will have a more profound effect, more then the inventory issue in my opinion. However the big question is, how long will this take to happen. Then again some people look at it like, they are happy to have a 5% mortgage when we could see way way way higher mortgages in the future, just how much will prices adjust is the real question and again, how long will this take. We have gotten good at kicking the can.

[Waiting to feel the magic]

Well, I’m trying to buy right now too. Part of me worries about pricing continuing to go up, and part of me worries about the double dip. Overall the consensus seems to be that prices will likely go down some more before they’ve totally bottomed out, but a lot depends on location and the type of property.

I’d say that if you were able to get 2003 pricing then you’re probably OK for the long run. Could you live with it if the value of your townhome went down 10% more in the next year or so? Are you planning to be in the property for several years? Would you prefer to live there than the rental that you have now? If yes to all of those, then buy.

Good luck. I’ll need it too.

[Waiting to feel the magic]

Well, I’m trying to buy right now too. Part of me worries about pricing continuing to go up, and part of me worries about the double dip. Overall the consensus seems to be that prices will likely go down some more before they’ve totally bottomed out, but a lot depends on location and the type of property.

I’d say that if you were able to get 2003 pricing then you’re probably OK for the long run. Could you live with it if the value of your townhome went down 10% more in the next year or so? Are you planning to be in the property for several years? Would you prefer to live there than the rental that you have now? If yes to all of those, then buy.

Good luck. I’ll need it too.

[Waiting to feel the magic]

Well, I’m trying to buy right now too. Part of me worries about pricing continuing to go up, and part of me worries about the double dip. Overall the consensus seems to be that prices will likely go down some more before they’ve totally bottomed out, but a lot depends on location and the type of property.

I’d say that if you were able to get 2003 pricing then you’re probably OK for the long run. Could you live with it if the value of your townhome went down 10% more in the next year or so? Are you planning to be in the property for several years? Would you prefer to live there than the rental that you have now? If yes to all of those, then buy.

Good luck. I’ll need it too.

[Waiting to feel the magic]

Well, I’m trying to buy right now too. Part of me worries about pricing continuing to go up, and part of me worries about the double dip. Overall the consensus seems to be that prices will likely go down some more before they’ve totally bottomed out, but a lot depends on location and the type of property.

I’d say that if you were able to get 2003 pricing then you’re probably OK for the long run. Could you live with it if the value of your townhome went down 10% more in the next year or so? Are you planning to be in the property for several years? Would you prefer to live there than the rental that you have now? If yes to all of those, then buy.

Good luck. I’ll need it too.

[Waiting to feel the magic]

Well, I’m trying to buy right now too. Part of me worries about pricing continuing to go up, and part of me worries about the double dip. Overall the consensus seems to be that prices will likely go down some more before they’ve totally bottomed out, but a lot depends on location and the type of property.

I’d say that if you were able to get 2003 pricing then you’re probably OK for the long run. Could you live with it if the value of your townhome went down 10% more in the next year or so? Are you planning to be in the property for several years? Would you prefer to live there than the rental that you have now? If yes to all of those, then buy.

Good luck. I’ll need it too.

[andymajumder]

I understand that….it is unsettling times, I came to the conclusion that FED would forcibly inflate our way through this, after all this is helicopter Ben in charge and everything he has done so far indicates that he believes deflation is a much bigger threat than inflation and reducing the value of our debt through infaltion is something he will continue to attempt.

If the bond market does collapse, what affect will that have on the dollar, wouldn’t that crash too…in that case in dollar denomination home prices might go up even though the dollar will be worth much less…

[andymajumder]

I understand that….it is unsettling times, I came to the conclusion that FED would forcibly inflate our way through this, after all this is helicopter Ben in charge and everything he has done so far indicates that he believes deflation is a much bigger threat than inflation and reducing the value of our debt through infaltion is something he will continue to attempt.

If the bond market does collapse, what affect will that have on the dollar, wouldn’t that crash too…in that case in dollar denomination home prices might go up even though the dollar will be worth much less…

[andymajumder]

I understand that….it is unsettling times, I came to the conclusion that FED would forcibly inflate our way through this, after all this is helicopter Ben in charge and everything he has done so far indicates that he believes deflation is a much bigger threat than inflation and reducing the value of our debt through infaltion is something he will continue to attempt.

If the bond market does collapse, what affect will that have on the dollar, wouldn’t that crash too…in that case in dollar denomination home prices might go up even though the dollar will be worth much less…

[andymajumder]

I understand that….it is unsettling times, I came to the conclusion that FED would forcibly inflate our way through this, after all this is helicopter Ben in charge and everything he has done so far indicates that he believes deflation is a much bigger threat than inflation and reducing the value of our debt through infaltion is something he will continue to attempt.

If the bond market does collapse, what affect will that have on the dollar, wouldn’t that crash too…in that case in dollar denomination home prices might go up even though the dollar will be worth much less…

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