[lonestar2000]

SD Househunter,

If you look at the articles, opinions, and the financial indicators, Americans are living on borrowed money, month to month. Purchases are being financed from 2nd mortgages, HELOCS, and the like. Savings are at an all time minimum.

I am the only earner in my family, with a stay at home wife/mom and a 14 month old son, and I make about $40,000 less than you. They way we do it is as follows:

1. Own a small mobile home in a rent controlled park,
$350 a month space rent.

2. Drive a scooter to work which gets 70mpg in the city,
$40 a month for gas.

3. I eat breakfast and dinner at home and eat $1 frozen dinners for lunch.

4. We shop at Ross (cheap, decent clothes), Big Lots (deals on many items), and 99c stores (groceries, toiletries, etc).

5. We limit eating out to once or twice a month.

We owe about $17,000 from a remodel and costs associated with our child birth. We’re paying this off to the tune of $1000 – $1400 a month and are on track to be debt free by this time next year. That is when we plan on purchasing a house. I think the timing will be just about right to pick up a cheap REO on a 30 year, fixed rate loan.

If you’re serious about buying a house you have to make any and all adjustments you’re able. A year of sacrifice will net you a nice house by this time next year.

[lonestar2000]

I agree with Thornberg’s assessment, but there will always be local markets that defy what happens overall.

Depending on where you’re looking prices may not decline much, or you might see incredible auction sell-offs of entire tracks like what happened in Florida.

Keep your eyes open if you’re looking to buy as there will be deals to be had much sooner than you may think.

[lonestar2000]

I agree with Thornberg’s assessment, but there will always be local markets that defy what happens overall.

Depending on where you’re looking prices may not decline much, or you might see incredible auction sell-offs of entire tracks like what happened in Florida.

Keep your eyes open if you’re looking to buy as there will be deals to be had much sooner than you may think.

[lonestar2000]

It’s fair to assume that all areas of discretionary spending will be hurting. Starbucks, movie theaters, and amusement parks are just a few that come to mind.

[lonestar2000]

It’s fair to assume that all areas of discretionary spending will be hurting. Starbucks, movie theaters, and amusement parks are just a few that come to mind.

[lonestar2000]

I already got mine, it was 5%, plus another 8% of my salary as profit sharing which went into my 401(k).

[lonestar2000]

I already got mine, it was 5%, plus another 8% of my salary as profit sharing which went into my 401(k).

[lonestar2000]

I would be upset too, but when people take light of the most important purchase of their life there’s nobody to blame but themselves.

People today think nothing about what they spend money on, just look at the bling passing for cars these days. A friend’s niece recently installed a 20 inch LCD display in her SUV so passangers in other cars can drool over it. The average population today is so stupid it’s scary.

[lonestar2000]

I would be upset too, but when people take light of the most important purchase of their life there’s nobody to blame but themselves.

People today think nothing about what they spend money on, just look at the bling passing for cars these days. A friend’s niece recently installed a 20 inch LCD display in her SUV so passangers in other cars can drool over it. The average population today is so stupid it’s scary.

[lonestar2000]

Lots of views expressed in this thread, thanks all for sharing.

One of San Diego’s charms are the open air space, and having to squeeze more houses in will definitely lessen that appeal. But that is only a small part of the full equation, and there is certainly plenty of options left for building new housing.

I would say that jobs and affordability are some of the strongest factors in pricing, and for now both of these are putting negative pressure on prices. Add to that the raising interest rate (which will worsen the ARM reset explosion), record high amounts of vacant homes for sale, and the fact that San Diego is losing more people than it is gaining. The result seems to be a continuing price adjustment downward and I don’t believe it is anywhere the bottom.

Coastal areas will be less everely hit than those more inland, but they will also feel the pinch in the coming months.

[lonestar2000]

Lots of views expressed in this thread, thanks all for sharing.

One of San Diego’s charms are the open air space, and having to squeeze more houses in will definitely lessen that appeal. But that is only a small part of the full equation, and there is certainly plenty of options left for building new housing.

I would say that jobs and affordability are some of the strongest factors in pricing, and for now both of these are putting negative pressure on prices. Add to that the raising interest rate (which will worsen the ARM reset explosion), record high amounts of vacant homes for sale, and the fact that San Diego is losing more people than it is gaining. The result seems to be a continuing price adjustment downward and I don’t believe it is anywhere the bottom.

Coastal areas will be less everely hit than those more inland, but they will also feel the pinch in the coming months.

[lonestar2000]

I fully agree with Perry. The best time to buy is when the interest rates are at the highest. You get a low principal with a high interest rate that you can barely afford, but when the interest rates go down you refinance, ending up with a low principal and a low interest rate.

[lonestar2000]

I fully agree with Perry. The best time to buy is when the interest rates are at the highest. You get a low principal with a high interest rate that you can barely afford, but when the interest rates go down you refinance, ending up with a low principal and a low interest rate.

[lonestar2000]

We’re currently renting (well, we own a small mobile home but rent the space) and we’re looking to buy a house, but they’re still overpriced for what we want, and can afford. Like many, we’re eagerly awaiting the day when house prices are back to fundamentals so we can move up without selling our souls to do it.

I think SD Realtor has the right balance and honesty in how he regards his profession in the current declining market. If I was looking for a home in SD I’d give him a call, but we’re about 120 miles North of there.

Anyhow, don’t be so quick to judge, I’ve found his comments to be well founded and realistic.

I too agree, that if you found the place you want, can afford it, and plan to stay, then buy it now. It’s a home, not an investment after all.

But, for many such as myself, there’s no choice but to wait, as we can’t afford the current prices.

What ever makes sense for your situation is what you should do. And I think most everyone here has realized by now, that the market is in for a long decline. It is the bottom that is going to be hard to judge. But, then again, once the house you want is affordable and within your reach, it really does not matter if it has reached the bottom or not, now does it?

[lonestar2000]

We’re currently renting (well, we own a small mobile home but rent the space) and we’re looking to buy a house, but they’re still overpriced for what we want, and can afford. Like many, we’re eagerly awaiting the day when house prices are back to fundamentals so we can move up without selling our souls to do it.

I think SD Realtor has the right balance and honesty in how he regards his profession in the current declining market. If I was looking for a home in SD I’d give him a call, but we’re about 120 miles North of there.

Anyhow, don’t be so quick to judge, I’ve found his comments to be well founded and realistic.

I too agree, that if you found the place you want, can afford it, and plan to stay, then buy it now. It’s a home, not an investment after all.

But, for many such as myself, there’s no choice but to wait, as we can’t afford the current prices.

What ever makes sense for your situation is what you should do. And I think most everyone here has realized by now, that the market is in for a long decline. It is the bottom that is going to be hard to judge. But, then again, once the house you want is affordable and within your reach, it really does not matter if it has reached the bottom or not, now does it?

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