[SD Realtor]

I pretty much agree with you all the way Rich. For a study on how the housing market performed in a substantially higher rate environment one can look back at the early 80’s. Sorry guys no 50% pullback.

Conversely people conveniently ignore the value of a nice low fixed rate mortgage when the money supply tightens up. Over the past 10 years we have seen (what I would guess) staggering numbers of loans converting to fixed rate vehicles. Given a few years of tightening the money supply these mortgages will be very well positioned. Yes there may be depreciation but for those with a fixed payment that was established in 2007-2017 dollars, they will be in decent shape.

I do agree with your point rich that low rates don’t justify insane valuations. However those who are locked into those low rates from purchases made in the past 10 years (IMO) will be able to weather any storm caused by depreciation.

It will be interesting to see what a rollover will look like in a high rate environment as opposed to a low rate environment like we had in 2006/7.

Finally as per the norm, most people are missing the point about buying a home. Waiting 5 or 6 years to purchase, which I believe is what we will need to see a marked depreciation means your 11 year old is now close to 17 and about the move out. Or your 5 year old is close to getting our of elementary school. The single person or couple who do not plan to have kids live a life that is not even close to young families with multiple kids. Different lifestyles demand a different approach to this problem.

[SD Realtor]

I am considering being an investor. I have had a friend tell me about one of them and he has entered into 2 different ventures and both of them yielded nice returns for him.

[SD Realtor]

It has been awhile Rich. I enjoyed the articles and I hope things have been well.

[SD Realtor]

Well stated FLU!

Falls into the “If I knew at 25 what I know at 50” category.

I would be working a hell of alot less now!

lol…

[SD Realtor]

I agree with cali’s point that if the treasury yields rise dramatically we are all pretty much screwed and the standard of living will change.

The shell game with the yields will go on for years maybe decades until someone pulls the plug. It will happen some day/year/decade.

[SD Realtor]

I have never seen a case where you MUST use the developer for financing.

That seems like it would have lawsuit city written all over it. Take my statement with a grain of salt but that would be interesting to see. I would heartily agree with HLS.

[SD Realtor]

Sorry to hear that happened Vees. You can contact your realtor and ask them to find out some of the details. First off if it was a cash deal you can see that as a field on the SOLD MLS page. You can also validate it on the tax roll. Furthermore your realtor can pull up the amount financed if it was financed. You can even find the name of the buyer and then look at their previous location to see if it was a neighbor or even a relative.

A call can also be made to the listing agent to see what happen.

It is a pretty trivial fact check that will help explain what happened so that it maybe does not happen again.

Beats speculating on it.

[SD Realtor]

WarChest there are plenty of bridge loans out there. However these loans are only made if there is a significant amount of money down. Also they have to be a primary loan so nothing is in front of them from a lien standpoint. Usually a minimum of 35 – 40% ltv is required.

[SD Realtor]

Hi nervous buyer… the turn around time from active to pending is tough to use in general. That varies substantially depending on your price range and type of home you are looking for.

The 350k and under range that you are looking in is a super competitive range. Try not to get frustrated and hang in there. Your agent should be able to give you some help on the statistics of the turn around time but again, don’t let it get you down. Don’t be afraid to take some time off of your search as well. Obsessing and pushing hard every weekend is a burner.

The “sitting” inventory I was referring to was a higher priced market in 4S and La Costa Valley in a certain price range. However you may see that higher priced homes where you are looking, that are 400k and have not moved because they really should be priced at 350k may come down some by mid summer. The problem you face though is a higher number of buyers in the pool.

Try to be patient and not get discouraged.

[SD Realtor]

Hi Moneymaker

Unfortunately, the answer is that each case varies somewhat. I made a post earlier in the thread by nervousbuyer on the subject.

It all depends on initial pricing with respect to comps. A less relevant factor is overall pricing as well. In the other post I was referring to communities in La Costa valley and some others in and around 4S Ranch. In these areas many sellers were coming in with initial pricings that were up to 10% above comps and had no reason being there. After about 40 days they were starting to come to church and bringing the pricing down.

Those were homes that were priced in the 900 and more range and had no reason being above say 850. One in particular came all the way down and has now received two offers in the past few days.

If they would have priced correctly to begin with they probably would have received higher offers to begin with.

So yeah your 45 day number is not a bad generalization. I would agree with you.

[SD Realtor]

nervous_buyer

Right now we are in a transition period. After having a robust period in 2012/2013 and part of 2014 things had slowed down. This spring we saw things happen quickly. Most all sellers came out of the gate strong in February with well overpriced homes. Some buyers fell for it and took the bait.

What then happened is more inventory came on the market in March and April and tried to match the relatively few higher priced sales. Unless their homes were exceptional or showed very well, we are now seeing much longer market times and are now witnessing price adjustments. However those price adjustments are still not bringing the homes to actual market value. Seller entitlement still runs deep. Homes that are priced fairly are still selling.

I cannot say we are really in a bubble but don’t buy a home if you don’t want to buy a home. I do think the market will adjust some but not in a major manner. More of a manner that if you take fair market solds from the last year spring, add a couple percent to them, that should be the price, not double digit percentages.

[SD Realtor]

Good to see things haven’t changed.

[SD Realtor]

Understand, the lender does not look at the physical inspection report. They do review the appraisal. Homes with cracked slabs are not insurable and thus the lender will not originate a loan. The same is not true for wiring unless it is something noted and commented on by the appraiser.

Once again, items that can be remedied should not prevent someone from buying a home unless the price is prohibitive…

We all have our own thresholds as to what “prohibitive” is.

[SD Realtor]

AN it is an indirect lack of financing. That is, you cannot get homeowners insurance on a home with a cracked slab. Without the insurance you cannot get financing. Although if the appraiser noted a cracked slab then the originator of the loan probably wouldn’t do the deal. You can get cracked slab deals done but getting an arrangement prior to even attempting to get the financing is the best way around it.

Agreed about the deal breaker stuff. I have seen many a buyer walk away from homes over things I personally would not sweat.

To each his own though right?

[SD Realtor]

Great news, enjoy the home and best of luck!

[Author]

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