As some of you have aptly observed, I think my views on the housing market are overly optimistic. The correction cannot happen fast enough in my book. I am sooooo ready to settle down in a place I can call my own.
Have I mentioned lately how I resent waiting out this bubble? I have tried to contain the bitterness and complaints .....but for some reason I feel the need to lash out today.
Yes wishing it so, won't make it so.....and this makes me an increasingly bitter renter (financially content, but emotionally bitter).
At first the local Sacramento housing market was a kind of geeky curiosity.....wondering if and when the economic fundamentals would kick in. During that time we were fairly productive and checked out various local neighborhoods.
But now that I have been in this rental for well over a year, and have pinpointed where I want to live, the curiosity has lost all its charm...even to this uber geeky blogger.
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I think you just have to hold out for one more year. Let the rest of the resets happen and wait for foreclosure rates to start slowing down.
I am in the same state of mind. I'm trying to hold out as long as possible. The area I really want to live in (Davis) hasn't budged as much as I would like. But houses in West Sac/Pocket area are mighty tempting.
So far we have been amply rewarded by waiting, lower prices, and lower rates.
In the year and a half we have been waiting, I would say we have saved between 50-100k in principle and interest. This is a healthy return for my time.
There is no doubt in my mind, waiting is the best option. But that doesn't mean I enjoy it.
'There is no doubt in my mind, waiting is the best option. But that doesn't mean I enjoy it.'
Exactamundo >; )
I seriously considered stretching my savings and even a 401k loan to buy a house when my lease expired. But the home I'm renting is acceptable, affordable, and moving is a pain. The rise in mortgage rates and the lack of loan programs/greater down payment required due to the declining market was also a deciding factor. I'm sticking it out for at least one more year.
I still look online at homes for sale, read the blogs, and even look at other rentals - some of which are mighty tempting. But then I think of how much I've NOT lost by renting the past couple of years and figure I can wait a year, even if I miss the bottom and catch it on a slow, normal rise.
Hey, if someone wants to buy my house...well...it is for sale...
But if it doesn't happen, oh well...
At least AgentBubble can tell you that it is a nice house.
Luis, just for reference, the last prices I had for Davis prior to the bubble were about 20-25% more than a similar home in Sacramento.
I can finally say, looking at higher end homes lately, that the higher end (over $500K) is really starting its downslide now.
smf said...
Hey, if someone wants to buy my house...well...it is for sale...
At least AgentBubble can tell you that it is a nice house.
Yep, very nice indeed. Great floorplan and location.
AB
By the way, we are following your suggestion to the letter.
The listing agent to the house we want is now our agent.
We'll see what happens. Those GR houses keep going down in price.
"Those GR houses keep going down in price."
I thought GR was a fortress? Real, where ya at?
The house we are looking at in GR sold for $720K at the peak.
They will be lucky to get more than $580K from us right now. A comparable house is for sale right now at $565K.
And I would still fully expect to lose another $100K of equity by the time it is over.
But this is a house that could work for us for 15 years or more. And we like it, even though it is a track home.
BT,
My wife and I discuss our situation in our rental quiet often, we have been in ours over 18 months now and it is tiring. Besides the obvious, saving money, watching the prices decrease and our choices increase daily, we have decided to "use" our deposit.
What I mean by “use” our deposit is to paint the kids rooms, put up extra shelves in the garage, hang up some larger painting/pictures that require larger holes in the walls, etc. I know it is not much but it makes us feel like the rental is more homey, not as cold and bland. So far a small price to pay.
Speaking of uber-geeks, we receive auto generated email for homes on a daily basis. If there aren't at least five (5) homes in each area we are disappointed. We also track the interesting ones through price reductions, in and out of ‘pending sale’, and then sometimes a sale… then we watch the neighbors houses come up with a cheaper price and it all starts over again. This makes the boring walls a little more likeable.
Still, when “that” day comes we will be overjoyed.
Renters, with the mortgage rate cuts OCR mortgage insider is reporting this week (from 6.13 ot 5.87%) you buying power has just risen 4% (or payments decreased 4%).
OH YEA, those other people looking at homes - them too.
Sippin, You first baby!
Oh that's right, you can't because you bought too early >; )
I was where you are, BT, a few months ago.
I haven't quite adopted husmanen's "using the deposit" tactic, mainly because I am incredibly lazy and won't put that much effort in until I'm in my own place.
On the two or three occasions when I was tempted to contact AB and try to make an offer, I talked myself out of it largely because of the rental's gardens and my love/hate relationship with them. I honestly am not seeing any PROPERTY that can meet this standard for the same as I'm paying in rent. The house itself is another story! But it's liveable, and when we have guests over we really try to just steer them outside as much as possible.
My standards aren't as high as most of the other bubblers, and that's because I don't have school age kids. I don't need to have really good schools. So, there's actually a lot out there right now in my price range -- but like Gwynster, I'm thinking the REOs are going to begin swamping the market sometime this fall and I've calmed down a lot in the last 6 months. I still look through MLS every week, and occasionally drive by the homes on my list. I read the blogs. But it's more like a hobby now than an obsession.
Just over 2 years in this rental for me.
Yep, I am in the same situtation. "Increasingly Impatient" It has been over 3 years since I've sold my house and been renting.
I am coming on to 4th year of renting and I am definitely wanting to buy a home now. It is very frustrating to see our government trying everything to keep the housing market from collapse(and keeping home prices high). I know they won't be succesful but it means I will have to rent longer.
It also doesn't help when the treasury bill I purchased this month was only paying 1.8%. I am especially frustrated as I have a large cash holding from sale of my house and Fed is doing everything in its power to punish the savers.
I will continue to make low ball offers (10-20% off asking), if the right house comes along but if I can hold out until this winter, I think I will be rewarded even more.
waiting sucks. We had decided to downsize, so the waiting is rewarding, but painful. Recession-proof employment is also a factor.
Patience will always be rewarded.
I think a guy sitting on a cold mountain top said that...
Increasingly impatient ... YESSSS!
I would also add that I'm angry about the level of fraud and wanton greed that has got us to this point. It wasn't that long ago that a home was a home, and not an investment (speculative or otherwise).
Renting (& waiting) sucks. But it is unquestionably the right thing to do. Trying to pick/time bottoms is tricky (& probably futile) but one has to balance emotional factors against the likelyhood of being underwater by $100K+.
"Trying to pick/time bottoms is tricky"
This has got to be the biggest urban housing myth ever told. IT IS NOT HARD to time a housing market bottom since they're several years wide. It's completely different than timing a peak.
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