The Market this Fall

[MicroGravity]

[quote=Scarlett]
I have young kids, I can’t keep renting and moving forever. I want a relatively nice, stable home for my family.[/quote]

My rationale as well. I’m up in the foothills of LA, and am pretty sure the “bottom” won’t happen for another couple of years. But, with the gov’t intervention, etc, etc,… it’s become quite hard to predict where things will go. We live in a town that is 3-miles square, and there are about 5 houses a year that come on the market that we would ever consider and the rental market is almost non-existent. Five years since we sold our house, it is time to stop wondering what school the kids will stay in, which little league, whether the landlord will let us get another dog.
Sometimes it’s not all about the money. We just pulled the trigger on one. We’ll see how far down it goes before heading northward again…

It’s only money, and ten years from now the money is likely to be worth much less–the house? we’ll see.

[Cube]

[quote=Ready411]
Seems there are more 1st time buyers buying on a whim doing the 3.5% down FHA loans. That’s my problem. If this is the new standard, and these are the people I will have to compete against, it will change the entry level market because they have a different view on the value of money.[/quote]

This is my main concern in a nutshell. If I use 20% down as my standard, but others are using 3.5% (or less) and are only looking at debt service, it’s not a market in which I want to compete. I don’t want to play the game of “who’s willing to promise to pay more for a house”. That’s a game of one-ups-manship I don’t want to play.

[Cube]

[quote=Ready411]
Seems there are more 1st time buyers buying on a whim doing the 3.5% down FHA loans. That’s my problem. If this is the new standard, and these are the people I will have to compete against, it will change the entry level market because they have a different view on the value of money.[/quote]

This is my main concern in a nutshell. If I use 20% down as my standard, but others are using 3.5% (or less) and are only looking at debt service, it’s not a market in which I want to compete. I don’t want to play the game of “who’s willing to promise to pay more for a house”. That’s a game of one-ups-manship I don’t want to play.

[Cube]

[quote=Ready411]
Seems there are more 1st time buyers buying on a whim doing the 3.5% down FHA loans. That’s my problem. If this is the new standard, and these are the people I will have to compete against, it will change the entry level market because they have a different view on the value of money.[/quote]

This is my main concern in a nutshell. If I use 20% down as my standard, but others are using 3.5% (or less) and are only looking at debt service, it’s not a market in which I want to compete. I don’t want to play the game of “who’s willing to promise to pay more for a house”. That’s a game of one-ups-manship I don’t want to play.

[Cube]

[quote=Ready411]
Seems there are more 1st time buyers buying on a whim doing the 3.5% down FHA loans. That’s my problem. If this is the new standard, and these are the people I will have to compete against, it will change the entry level market because they have a different view on the value of money.[/quote]

This is my main concern in a nutshell. If I use 20% down as my standard, but others are using 3.5% (or less) and are only looking at debt service, it’s not a market in which I want to compete. I don’t want to play the game of “who’s willing to promise to pay more for a house”. That’s a game of one-ups-manship I don’t want to play.

[Cube]

[quote=Ready411]
Seems there are more 1st time buyers buying on a whim doing the 3.5% down FHA loans. That’s my problem. If this is the new standard, and these are the people I will have to compete against, it will change the entry level market because they have a different view on the value of money.[/quote]

This is my main concern in a nutshell. If I use 20% down as my standard, but others are using 3.5% (or less) and are only looking at debt service, it’s not a market in which I want to compete. I don’t want to play the game of “who’s willing to promise to pay more for a house”. That’s a game of one-ups-manship I don’t want to play.

[CA renter]

[quote=Cube][quote=Ready411]
Seems there are more 1st time buyers buying on a whim doing the 3.5% down FHA loans. That’s my problem. If this is the new standard, and these are the people I will have to compete against, it will change the entry level market because they have a different view on the value of money.[/quote]

This is my main concern in a nutshell. If I use 20% down as my standard, but others are using 3.5% (or less) and are only looking at debt service, it’s not a market in which I want to compete. I don’t want to play the game of “who’s willing to promise to pay more for a house”. That’s a game of one-ups-manship I don’t want to play.[/quote]

Amen. My feelings exactly.

There is no difference between what’s going on now and what was going on during the rise of the bubble (which has still not yet deflated). If a person with something to lose (20%+ down that was saved up over time),has to compete with a buyer with a 3.5% FHA loan (where the down payment can be borrowed!), then there is only going to be one winner — the least responsible, highest risk buyer/borrower. These people are **almost guaranteed** to end up in foreclosure if a single unlucky event happens and if there is no price appreciation to bail them out.

We have learned NOTHING from the events of this decade. That’s the biggest disappointment of all.

[CA renter]

[quote=Cube][quote=Ready411]
Seems there are more 1st time buyers buying on a whim doing the 3.5% down FHA loans. That’s my problem. If this is the new standard, and these are the people I will have to compete against, it will change the entry level market because they have a different view on the value of money.[/quote]

This is my main concern in a nutshell. If I use 20% down as my standard, but others are using 3.5% (or less) and are only looking at debt service, it’s not a market in which I want to compete. I don’t want to play the game of “who’s willing to promise to pay more for a house”. That’s a game of one-ups-manship I don’t want to play.[/quote]

Amen. My feelings exactly.

There is no difference between what’s going on now and what was going on during the rise of the bubble (which has still not yet deflated). If a person with something to lose (20%+ down that was saved up over time),has to compete with a buyer with a 3.5% FHA loan (where the down payment can be borrowed!), then there is only going to be one winner — the least responsible, highest risk buyer/borrower. These people are **almost guaranteed** to end up in foreclosure if a single unlucky event happens and if there is no price appreciation to bail them out.

We have learned NOTHING from the events of this decade. That’s the biggest disappointment of all.

[CA renter]

[quote=Cube][quote=Ready411]
Seems there are more 1st time buyers buying on a whim doing the 3.5% down FHA loans. That’s my problem. If this is the new standard, and these are the people I will have to compete against, it will change the entry level market because they have a different view on the value of money.[/quote]

This is my main concern in a nutshell. If I use 20% down as my standard, but others are using 3.5% (or less) and are only looking at debt service, it’s not a market in which I want to compete. I don’t want to play the game of “who’s willing to promise to pay more for a house”. That’s a game of one-ups-manship I don’t want to play.[/quote]

Amen. My feelings exactly.

There is no difference between what’s going on now and what was going on during the rise of the bubble (which has still not yet deflated). If a person with something to lose (20%+ down that was saved up over time),has to compete with a buyer with a 3.5% FHA loan (where the down payment can be borrowed!), then there is only going to be one winner — the least responsible, highest risk buyer/borrower. These people are **almost guaranteed** to end up in foreclosure if a single unlucky event happens and if there is no price appreciation to bail them out.

We have learned NOTHING from the events of this decade. That’s the biggest disappointment of all.

[CA renter]

[quote=Cube][quote=Ready411]
Seems there are more 1st time buyers buying on a whim doing the 3.5% down FHA loans. That’s my problem. If this is the new standard, and these are the people I will have to compete against, it will change the entry level market because they have a different view on the value of money.[/quote]

This is my main concern in a nutshell. If I use 20% down as my standard, but others are using 3.5% (or less) and are only looking at debt service, it’s not a market in which I want to compete. I don’t want to play the game of “who’s willing to promise to pay more for a house”. That’s a game of one-ups-manship I don’t want to play.[/quote]

Amen. My feelings exactly.

There is no difference between what’s going on now and what was going on during the rise of the bubble (which has still not yet deflated). If a person with something to lose (20%+ down that was saved up over time),has to compete with a buyer with a 3.5% FHA loan (where the down payment can be borrowed!), then there is only going to be one winner — the least responsible, highest risk buyer/borrower. These people are **almost guaranteed** to end up in foreclosure if a single unlucky event happens and if there is no price appreciation to bail them out.

We have learned NOTHING from the events of this decade. That’s the biggest disappointment of all.

[CA renter]

[quote=Cube][quote=Ready411]
Seems there are more 1st time buyers buying on a whim doing the 3.5% down FHA loans. That’s my problem. If this is the new standard, and these are the people I will have to compete against, it will change the entry level market because they have a different view on the value of money.[/quote]

This is my main concern in a nutshell. If I use 20% down as my standard, but others are using 3.5% (or less) and are only looking at debt service, it’s not a market in which I want to compete. I don’t want to play the game of “who’s willing to promise to pay more for a house”. That’s a game of one-ups-manship I don’t want to play.[/quote]

Amen. My feelings exactly.

There is no difference between what’s going on now and what was going on during the rise of the bubble (which has still not yet deflated). If a person with something to lose (20%+ down that was saved up over time),has to compete with a buyer with a 3.5% FHA loan (where the down payment can be borrowed!), then there is only going to be one winner — the least responsible, highest risk buyer/borrower. These people are **almost guaranteed** to end up in foreclosure if a single unlucky event happens and if there is no price appreciation to bail them out.

We have learned NOTHING from the events of this decade. That’s the biggest disappointment of all.

[34f3f3f]

There is still quite a large number who think there is more downside potential than upside, and for reasons as solid as bricks and mortar. Trouble is there are two variables; interest rates and prices so it’s become a bit of a roll of the dice for some. If your instincts tell you to wait, then wait and keep your ears to the wall for signs of a change. Another option may be to explore possible areas that already give you that discount you may be anticipating. Foreclosures, fixer’s, short sales, areas tipped for upside potential. I’ve just posted to see if anyone knows about lease options. I am tired, depressed, frantic, disillusioned, frustrated, but am determined to extract what is owed me for my patience and due diligence. Home ownership isn’t everything, and does come with more than just a high price tag, so not all is lost if you don’t buy.

[34f3f3f]

There is still quite a large number who think there is more downside potential than upside, and for reasons as solid as bricks and mortar. Trouble is there are two variables; interest rates and prices so it’s become a bit of a roll of the dice for some. If your instincts tell you to wait, then wait and keep your ears to the wall for signs of a change. Another option may be to explore possible areas that already give you that discount you may be anticipating. Foreclosures, fixer’s, short sales, areas tipped for upside potential. I’ve just posted to see if anyone knows about lease options. I am tired, depressed, frantic, disillusioned, frustrated, but am determined to extract what is owed me for my patience and due diligence. Home ownership isn’t everything, and does come with more than just a high price tag, so not all is lost if you don’t buy.

[34f3f3f]

There is still quite a large number who think there is more downside potential than upside, and for reasons as solid as bricks and mortar. Trouble is there are two variables; interest rates and prices so it’s become a bit of a roll of the dice for some. If your instincts tell you to wait, then wait and keep your ears to the wall for signs of a change. Another option may be to explore possible areas that already give you that discount you may be anticipating. Foreclosures, fixer’s, short sales, areas tipped for upside potential. I’ve just posted to see if anyone knows about lease options. I am tired, depressed, frantic, disillusioned, frustrated, but am determined to extract what is owed me for my patience and due diligence. Home ownership isn’t everything, and does come with more than just a high price tag, so not all is lost if you don’t buy.

[34f3f3f]

There is still quite a large number who think there is more downside potential than upside, and for reasons as solid as bricks and mortar. Trouble is there are two variables; interest rates and prices so it’s become a bit of a roll of the dice for some. If your instincts tell you to wait, then wait and keep your ears to the wall for signs of a change. Another option may be to explore possible areas that already give you that discount you may be anticipating. Foreclosures, fixer’s, short sales, areas tipped for upside potential. I’ve just posted to see if anyone knows about lease options. I am tired, depressed, frantic, disillusioned, frustrated, but am determined to extract what is owed me for my patience and due diligence. Home ownership isn’t everything, and does come with more than just a high price tag, so not all is lost if you don’t buy.

[Author]

Posts