[jimmyle]

This is helpful if I have a list of Closed Sales.

[jimmyle]

This is helpful if I have a list of Closed Sales.

[jimmyle]

our $16/hr secretary drives the Hummer H2 to work. One way distance is 60 miles. I just can’t understand it.

[jimmyle]

I think these houses were about $260K in 2000 when I just graduated from UCSD and made $50K/yr. Everyone was telling me to buy one. I thought buying a $260K home with my salary was stretching it so I didn’t. Another reason was during the 90’s prices stay almost flat so I didn’t expect house prices to balloon. As the price went up and I couldn’t afford it any longer, they kept telling me “I told you so man”. Admittedly, between 2003-2005,I regretted the decision of not buying in 2000.

I think $175K is too low, assumming inflation is 3.5% and home prices in 2000 were economically sound.

Then $260K x 1.035^7 = $331K (2007)

But I think it might not go down this low. It might goes to around $410-420K, stalls and let inflation catches up some times in 2009-2010.

[jimmyle]

Earlier my fiancee and I was thinking about making an offer of $480K for the Granby’s house (which was listed at $525K). Luckily, I found this website, bought in your analyses, and told my fiancee to wait. Wow, we basically saved $50K already.

Lets say the Kemerton house will be sold at $440K. It is going to be shown clearly on Zillow.com and that will affect the pricing for the entire neighborhood. At this rate these houses might be going for $420-430K at the end of this year.

[jimmyle]

Sounds like those late night infomercials.

[jimmyle]

Hopefully this continues to accelerate for the next two years to bring prices down to a level where young people can afford to buy a house.

[jimmyle]

I don’t like this but $1B in financial aid is pocket change considered how many people will be in trouble. Also, many people will just stop paying to qualified for the assistance, it could make the problem worse.

[jimmyle]

I didn’t know there is another foreclosure near by. I love to see these foreclosures. My fiancee said that I am an “ambulance chaser” because families get evicted in these cases.

[jimmyle]

I meant some body bought it at $618K, not $635K. So the drop is about 20% not adjusted for inflation.

[jimmyle]

asianautica,

I hope you are right. It would be nice to buy a house like that under $500K.

There was another Blackstad house listed for $549K (1800+ sq ft). We checked it out but didn’t like it because the back yard fence got knocked down, the bathrooms and kitchens needed replacement). Bedrooms have laminated woods (bad idea). Stairs were squeaky. The owner seemed depressed when we talked to him. Anyway, it went into foreclosure today.

[jimmyle]

I make about $75K and my fiancee makes about $50K. There is no way I can afford a home if she doesn’t work. None of my friends can buy anything without their spouses’ income (we are around 30 yrs old). I remember my uncles bought homes on their Engineering salaries in the 90s. I think it will never be like that again.
We plan to have children immediately but luckily my to be mother-in-law is in Mira Mesa and she wants to baby sit the kids. She loves kids. That is why I have to buy in Mira Mesa.

[jimmyle]

Thank you everyone for your advice,
I think I will wait until September and then make my decision from there.
By the way, I like the following house, but it is way overpriced. Hopefully a house like this will be around $500K in one or two years.
http://yahoo.prudentialcaliforniarealtyonline.com/details/start.aspx?Results=true&propid=0090076023501

[jimmyle]

asianautica,

Where are you planning to buy in MM? I like the Sorrento Valley/Calle Critobal area but these newer homes are still out of my reach with the 1800-2000 sq ft ones going for $600K-$650K. If they go down an additional 15% then I will be able to get them. If prices stay where they are then I will buy near Rancho Santa Fe and Mira Mesa Blvd.

[jimmyle]

gn,
Thanks for the info, I didn’t even think about it but it makes sense now, people are basically max out on the loans to get bigger houses so the median price might not reflect the actual market price. Price per square foot should be a better indication of the market price but I am not sure if this information is available anywhere.
Recently I saw a house that was purchased for $660K in 2005 and was listed for $549K in March 2007. We were tempted to put in an offer of $530K but then we held back because we weren’t sure if the timing was right. It was really difficult not to pull the trigger because this attractive house was suddenly within my reach. Some body bought it but I am not sure how much they paid for it.
Hopefully we can wait for the market to bottom out in 2008.
Thanks,
Jimmy

[Author]

Posts