Need Quick Advise - Home purchase - Page 4

lakai · #31 06-14-2009, 09:41 AM

Quote:

Originally Posted by FSETH

According to Bankrate.com Mortgage rates rose to 5.56% for a 30-year fixed. That is up from last weeks 5.36%. These rates are still crazy low. Before this recession, people would kill for rates like this. What are you gonna do? Sit around and wait for them to drop back into the 4's? Who knows if that will even happen and even if it does, by then the house you really wanted to buy may be gone??? It is a tax deduction anyway. If you can get a crazy deal on a house right now, it may more than make up for the rate increase from last week in the long run. Plus, you now have the house you wanted.

There are no deals for anything in a good area, at least for homes over half a mil, you also have a huge amount of homes that were say listing for under 425k back in dec, now listing for half a mil or more. Although the lower range of homes are somewhat stablizing, a vast majority are still priced too high.

For homes 500k and up its the same deal. btw... Anything decent is listing at a 10% premium at minimum. btw what tax deduction aside from what you can usually deduct? You get $8,000 credit from federal if you're buying your first home, and/or $10,000 from state if you buy a NEW construction home. If you make over 75k a year, you are automatically disqualified for the federal credit.

These "incentives" does nothing beside keep house prices high enough to lure a new batch of suckers to buy up the forclosure/REO inventory.

In a few months, the jumbo/ alt-a loans will start defaulting in large numbers. By then you'll see the 500k+ properties start to come back down to reality hopefully.

I'm really tempted to buy right now too but its not really a buyers market right now.

California gave another 120 day free pass to deadbeats, Banks aren't budging on the price for any short sale/forclosure homes that are decent.
I think the only way to possibly get a deal right now in this market is to pay cash.

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FSETH · #32 06-14-2009, 09:56 AM

Quote:

Originally Posted by lakai

There are no deals for anything in a good area, at least for homes over half a mil, you also have a huge amount of homes that were say listing for under 425k back in dec, now listing for half a mil or more. Although the lower range of homes are somewhat stablizing, a vast majority are still priced too high.

For homes 500k and up its the same deal. btw... Anything decent is listing at a 10% premium at minimum. btw what tax deduction aside from what you can usually deduct? You get $8,000 credit from federal if you're buying your first home, and/or $10,000 from state if you buy a NEW construction home. If you make over 75k a year, you are automatically disqualified for the federal credit.

These "incentives" does nothing beside keep house prices high enough to lure a new batch of suckers to buy up the forclosure/REO inventory.

In a few months, the jumbo/ alt-a loans will start defaulting in large numbers. By then you'll see the 500k+ properties start to come back down to reality hopefully.

I'm really tempted to buy right now too but its not really a buyers market right now.

California gave another 120 day free pass to deadbeats, Banks aren't budging on the price for any short sale/forclosure homes that are decent.
I think the only way to possibly get a deal right now in this market is to pay cash.

There are plenty of good deals in the best of areas here and even in these areas, the $500,000 and up homes have taken hits just like any other price point. $1 million+ homes have taken a big hit. It is hard to get values from a few years ago when appraising $1 million properties. I have come in less in the majority of these appraisals. From my experience here, listing prices have not started creeping up. If a house was listed for $425k in December, it not going to be listed for more now. More than likely reduced.

All I was saying about the deduction is that mortgage interest is tax deductible in general and if you are buying an 18,000 square foot home, you could probably use the deduction of the extra interest to get the house you want.

Like I said, someone else may know the Cali market better than I, but rates are still historically low. Not low for the last year or so, but still pretty good. B-Line really wanted this house and it appears that he found a pretty good deal from what he has mentioned. If he were to wait, there is no guarantee the house he really wanted would still be there. So with decent rates and the house of his desire available, he felt it was worth it to pull the trigger.

lakai · #33 06-20-2009, 09:37 PM

I understand what you are saying, things are a little different over here than in GA. Over here in Southern California, prices have gone up so much to the point where homes in less desireable areas like South Central LA or something went for $300,000.

Prices for homes that were/sold worth $1 million back in 2007 have fallen nearly 30% since. If looking at prices in that sense, then yes there are plenty of good deals. True that rates are historically low, but the what the government is doing trying to keeping home values artificially high, rather than let the market decide for itself what a home is worth. Listing prices might not have increased but most sellers will not sell for less than list. That being said, if you have no problem sitting on a home for a few years then now might be a good time to buy due to the amount of inventory available. People would rather let their home get foreclosed on rather than take a loss, all that has to stop.

btw b-line, if you're looking for more data on that home you are interested in, you can take a look at redfin.com or trulia.com for stuff that you won't see on mls.

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