View Full Version : Good Time To Buy A House?
12-26-2001, 02:11 PM
My wife and I are looking to buy our first house sometime in March/April and the one question that I can't find a definitive answer to is, "Is it a good time to buy?"
We have been looking in and around the So. Orange County, CA area and home prices still seem to be unreasonably inflated. With the economy going in the pooper the way it is I can't imagine it will stay that way for long. I just don't want to drop a huge wad of cash on a place just to have it's value drop like a rock six months later.
So any word of wisdom? Thanks!
12-26-2001, 03:48 PM
I've just bought a condo and am waiting to close..
The price I got was actually REALLY good compared to the other condo's in the area...
I think there was a small window during the past 3/4 months where people were starting to drop prices realizing that it was becoming a buyers market...
However, the market got flooded with people trying to take advantage of the low interest rates, and thus, it became a seller's market again.
So, imo, i think you need to weigh the advantages of a low interest rate vs. a higher price. Let's say you buy a house at 200,000 but then, a year later, the market price is 175 but the interest rate skyrockets again to %15 (somewhat normal before this year). That interest rate is double what you can get now..
What's the better deal for you?
Are you really losing $25000?
kinda depends when you decide to move and resell...
it's case by case basis i think....
12-26-2001, 03:58 PM
I honestly don't believe home value will truly drop in California, particularly not in So. Orange County. More and more people are flocking there. It's just the new target for the "white flight." Coto de Caza and all those places are so far away from everything and overpriced, but I guess there's some kind of prestige with living in an area once owned by the Irvine family.
12-26-2001, 04:31 PM
You want to buy a house as early in the calendar year as possible. The reason is that for tax purposes all your points/origination fees are tax deductible and all mortgage interest you pay during the year is tax deductible. If you buy late in the year (Nov/Dec) the points you pay in interest may not be enough to clear the standard deduction amount (what is it like $4-5000 this year), and you wont be able to itemize and deduct your initial loan points/fees.
12-26-2001, 04:51 PM
I'm actually considering buying an apartment in Manhattan now. I was about to go rent, but given that real estate here has dropped rather precipitously and you can get a mortgage at 6.5%, it's starting to look like a damn good option. Will need a bit of help getting the down payment together, so we'll see if the good ole 'rents can help in that regard . . . if so, I think I'm in business . . . heh
12-26-2001, 05:22 PM
Originally posted by attgig
but the interest rate skyrockets again to %15 (somewhat normal before this year). That interest rate is double what you can get now..
Yeah, interest rates are low right now but 15%? I don't think they've been anywhere near there since the recession of the early 1980s. For the past 10 years they've been between about 6-9 percent.
12-26-2001, 06:25 PM
Well, it is defineately a better time to be in debt than any other, and if you can buy a home on a fixed rate right now, then you probably should. Property, especially in California, is one thing that doesn't depriciate. Okay, so maybe if you buy now, the property value might drop a little in the near future, but most of the time, when you buy a house, you are looking a little further than the near future. I would almost guarantee you that in 10-20 years, that home will be worth considerably more than you paid for it. If it isn't, then there is something really wrong with the economy, and you wouldn't have been any better off anywhere else.
12-26-2001, 07:21 PM
Buy in Oregon. Why would anyone want to live in Cali? well, stupid question, but still... got the mountains, ocean, lakes and ahhh yeah, cheap livin'
12-26-2001, 07:45 PM
I have a friend who sells real estate. He was explaining to me the whole cycle thing where it goes from buyers market to sellers market and all the time inbetween. Apparently in So Cal its never really a buyers market since everyone wants to live here (damn those cheeseheads!) but around March is where it will be best to buy.
12-27-2001, 12:06 AM
12-27-2001, 12:04 PM
12-28-2001, 01:07 PM
Donnie and I looked into buying a house when we first got here and I ended up on a email list for KBHomes. I get offers for free movie tickets all the time. They, of course come with offers of appliance deals and 5.99% financing.
As for the right time to buy, here in Vegas it is. So. Cal, prob as best as you will get :)
12-29-2001, 01:47 AM
well I moved into my new home in Oct... the price has jumped $70-80K since then
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