So I’m seriously thinking of jumping in

[peterb]

Dont buy now. There’s every indication that prices will go lower in the next 6 months. And nothing to indicate they will rise.

[carlsbadworker]

I think it would be fine as long as you really plan to take six months to jump in. In fact, I’m planning to do the same. At some point, although the price may continue to drop, it would be insignificant comparing to the monthly rent + the pleasure of owning a house that you like (there is no guarantee that you will find your dream house if you only buy at the absolute price bottom in that area)

[carlsbadworker]

I think it would be fine as long as you really plan to take six months to jump in. In fact, I’m planning to do the same. At some point, although the price may continue to drop, it would be insignificant comparing to the monthly rent + the pleasure of owning a house that you like (there is no guarantee that you will find your dream house if you only buy at the absolute price bottom in that area)

[carlsbadworker]

I think it would be fine as long as you really plan to take six months to jump in. In fact, I’m planning to do the same. At some point, although the price may continue to drop, it would be insignificant comparing to the monthly rent + the pleasure of owning a house that you like (there is no guarantee that you will find your dream house if you only buy at the absolute price bottom in that area)

[carlsbadworker]

I think it would be fine as long as you really plan to take six months to jump in. In fact, I’m planning to do the same. At some point, although the price may continue to drop, it would be insignificant comparing to the monthly rent + the pleasure of owning a house that you like (there is no guarantee that you will find your dream house if you only buy at the absolute price bottom in that area)

[carlsbadworker]

I think it would be fine as long as you really plan to take six months to jump in. In fact, I’m planning to do the same. At some point, although the price may continue to drop, it would be insignificant comparing to the monthly rent + the pleasure of owning a house that you like (there is no guarantee that you will find your dream house if you only buy at the absolute price bottom in that area)

[SD Realtor]

For the most part, I cannot think of any compelling reason to purchase a condo at the present time with one exception…. that is interest rates.

I believe a very large misconception here is that home prices move inversely to interest rate movement in a quick amount of time. In reality that is not true. Home prices move for only one reason, that is that the home does not sell. Now of course when interest rates move up then yes that reduces the buyers pool and essentially less homes will sell. However there is a fundamental lag time involved, generally much longer then people think.

In the end the prices will move.

However if you were to purchase a condo 3-4 weeks ago verses today you would have save about 3/8 of a point on your mortgage rate and that is non trivial.

Let me ask you this… what is your rush? Do you have a family? Are you looking for a good school district? Are you tired of renting? What part of town are you looking at?

[SD Realtor]

For the most part, I cannot think of any compelling reason to purchase a condo at the present time with one exception…. that is interest rates.

I believe a very large misconception here is that home prices move inversely to interest rate movement in a quick amount of time. In reality that is not true. Home prices move for only one reason, that is that the home does not sell. Now of course when interest rates move up then yes that reduces the buyers pool and essentially less homes will sell. However there is a fundamental lag time involved, generally much longer then people think.

In the end the prices will move.

However if you were to purchase a condo 3-4 weeks ago verses today you would have save about 3/8 of a point on your mortgage rate and that is non trivial.

Let me ask you this… what is your rush? Do you have a family? Are you looking for a good school district? Are you tired of renting? What part of town are you looking at?

[SD Realtor]

For the most part, I cannot think of any compelling reason to purchase a condo at the present time with one exception…. that is interest rates.

I believe a very large misconception here is that home prices move inversely to interest rate movement in a quick amount of time. In reality that is not true. Home prices move for only one reason, that is that the home does not sell. Now of course when interest rates move up then yes that reduces the buyers pool and essentially less homes will sell. However there is a fundamental lag time involved, generally much longer then people think.

In the end the prices will move.

However if you were to purchase a condo 3-4 weeks ago verses today you would have save about 3/8 of a point on your mortgage rate and that is non trivial.

Let me ask you this… what is your rush? Do you have a family? Are you looking for a good school district? Are you tired of renting? What part of town are you looking at?

[SD Realtor]

For the most part, I cannot think of any compelling reason to purchase a condo at the present time with one exception…. that is interest rates.

I believe a very large misconception here is that home prices move inversely to interest rate movement in a quick amount of time. In reality that is not true. Home prices move for only one reason, that is that the home does not sell. Now of course when interest rates move up then yes that reduces the buyers pool and essentially less homes will sell. However there is a fundamental lag time involved, generally much longer then people think.

In the end the prices will move.

However if you were to purchase a condo 3-4 weeks ago verses today you would have save about 3/8 of a point on your mortgage rate and that is non trivial.

Let me ask you this… what is your rush? Do you have a family? Are you looking for a good school district? Are you tired of renting? What part of town are you looking at?

[SD Realtor]

For the most part, I cannot think of any compelling reason to purchase a condo at the present time with one exception…. that is interest rates.

I believe a very large misconception here is that home prices move inversely to interest rate movement in a quick amount of time. In reality that is not true. Home prices move for only one reason, that is that the home does not sell. Now of course when interest rates move up then yes that reduces the buyers pool and essentially less homes will sell. However there is a fundamental lag time involved, generally much longer then people think.

In the end the prices will move.

However if you were to purchase a condo 3-4 weeks ago verses today you would have save about 3/8 of a point on your mortgage rate and that is non trivial.

Let me ask you this… what is your rush? Do you have a family? Are you looking for a good school district? Are you tired of renting? What part of town are you looking at?

[Arraya]

Mortgage payments for Alt-A and option-ARM loans won’t hit the height of their scheduled -sharply upward- resets until 2010-11. Hence, unless home prices start rising soon and fast, these resets will drive up foreclosure and repossession numbers to levels even much higher than they are today.

IMO, This is the variable that will knock the shit out some of the more desirable areas of SD. How many homeowners back in 04-06 purchased something a little out of their range, with a time bomb loan, with hopes of either an increase in salary or skyrocketing equity to save them, all in the name of keeping up appearances. Now finding themselves with a shrinking job market, collapsing equity and financial system on the brink of implosion and facing a neg-am that is about to reset, like looking down a barrel of a shotgun. I’m sure quite a few people are sweating, cursing their significant other for running up the CCs and contemplating walking from their mortgage as I write this.

You can’t have it both ways: either sales go up OR prices go down. There will be no miracle that suddenly replenishes either people’s incomes or banks’ ability to lend, or both. The mounting job losses, of which there is no end in sight, only exacerbates they all ready horrendous state of the market.

The only possible conclusion that does not include a fairy tale or divine intervention, is that home prices will keep falling for years to come. If they stay high, there will be no buyers. And without buyers, prices will fall.

[Arraya]

Mortgage payments for Alt-A and option-ARM loans won’t hit the height of their scheduled -sharply upward- resets until 2010-11. Hence, unless home prices start rising soon and fast, these resets will drive up foreclosure and repossession numbers to levels even much higher than they are today.

IMO, This is the variable that will knock the shit out some of the more desirable areas of SD. How many homeowners back in 04-06 purchased something a little out of their range, with a time bomb loan, with hopes of either an increase in salary or skyrocketing equity to save them, all in the name of keeping up appearances. Now finding themselves with a shrinking job market, collapsing equity and financial system on the brink of implosion and facing a neg-am that is about to reset, like looking down a barrel of a shotgun. I’m sure quite a few people are sweating, cursing their significant other for running up the CCs and contemplating walking from their mortgage as I write this.

You can’t have it both ways: either sales go up OR prices go down. There will be no miracle that suddenly replenishes either people’s incomes or banks’ ability to lend, or both. The mounting job losses, of which there is no end in sight, only exacerbates they all ready horrendous state of the market.

The only possible conclusion that does not include a fairy tale or divine intervention, is that home prices will keep falling for years to come. If they stay high, there will be no buyers. And without buyers, prices will fall.

[Arraya]

Mortgage payments for Alt-A and option-ARM loans won’t hit the height of their scheduled -sharply upward- resets until 2010-11. Hence, unless home prices start rising soon and fast, these resets will drive up foreclosure and repossession numbers to levels even much higher than they are today.

IMO, This is the variable that will knock the shit out some of the more desirable areas of SD. How many homeowners back in 04-06 purchased something a little out of their range, with a time bomb loan, with hopes of either an increase in salary or skyrocketing equity to save them, all in the name of keeping up appearances. Now finding themselves with a shrinking job market, collapsing equity and financial system on the brink of implosion and facing a neg-am that is about to reset, like looking down a barrel of a shotgun. I’m sure quite a few people are sweating, cursing their significant other for running up the CCs and contemplating walking from their mortgage as I write this.

You can’t have it both ways: either sales go up OR prices go down. There will be no miracle that suddenly replenishes either people’s incomes or banks’ ability to lend, or both. The mounting job losses, of which there is no end in sight, only exacerbates they all ready horrendous state of the market.

The only possible conclusion that does not include a fairy tale or divine intervention, is that home prices will keep falling for years to come. If they stay high, there will be no buyers. And without buyers, prices will fall.

[Arraya]

Mortgage payments for Alt-A and option-ARM loans won’t hit the height of their scheduled -sharply upward- resets until 2010-11. Hence, unless home prices start rising soon and fast, these resets will drive up foreclosure and repossession numbers to levels even much higher than they are today.

IMO, This is the variable that will knock the shit out some of the more desirable areas of SD. How many homeowners back in 04-06 purchased something a little out of their range, with a time bomb loan, with hopes of either an increase in salary or skyrocketing equity to save them, all in the name of keeping up appearances. Now finding themselves with a shrinking job market, collapsing equity and financial system on the brink of implosion and facing a neg-am that is about to reset, like looking down a barrel of a shotgun. I’m sure quite a few people are sweating, cursing their significant other for running up the CCs and contemplating walking from their mortgage as I write this.

You can’t have it both ways: either sales go up OR prices go down. There will be no miracle that suddenly replenishes either people’s incomes or banks’ ability to lend, or both. The mounting job losses, of which there is no end in sight, only exacerbates they all ready horrendous state of the market.

The only possible conclusion that does not include a fairy tale or divine intervention, is that home prices will keep falling for years to come. If they stay high, there will be no buyers. And without buyers, prices will fall.

[Author]

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