We are located in Clovis, Ca, we are looking to buy a house that was sold last year for $430K, but the buyer couldnt afford it and it is going to foreclose, so before it went to foreclosure, it went into a "short sale, we offered $318K during the short sale and got the house. So my question is, with the declining California RE market, should we wait and save money while we rent in anticipation the market will continue to drop and we can get a bigger house for the same price in a year. or just buy this house because the housing market will go back up soon? any help is good.
2007-03-13 07:51:41 · 6 answers · asked by Gary S 1 in Business & Finance ➔ Renting & Real Estate
We are located in Clovis, Ca, we are looking to buy a house that was sold last year for $430K, but the buyer couldnt afford it and it is going to foreclose, so before it went to foreclosure, it went into a "short sale, we offered $318K during the short sale and got the house. The house is currently appraised at 419K. It is in the best part of central california and it is 2100, 4brm, 3 bath, fam room, living room, 2 stories, spanish tile on the the whole bottom floor and granite tops... So my question is, with the declining California RE market, should we wait and save money while we rent in anticipation the market will continue to drop and we can get a bigger and nicer house in the same part of town for the same price in a year. or just buy this house because the housing market will go back up soon? any help is good.
2007-03-13 09:44:10 · update #1
Not only no, hell no, the market is currently peaked and busting, it will be several months (probably several years) of crashing before its a good time to buy again. Wait for the bottom of the curve, then when prices start to slowly creep up, then buy.
Otherwise you will have a house that depreciates worse than a car.
2007-03-13 09:53:05 · answer #1 · answered by Mark P. 5 · 0⤊ 0⤋
Clovis and Fresno area has really low cost houses compared to Eureka, CA. Usually, the houses go up in price when school is out, and people are more prone to sell their homes, or to move out of the city they do live in. To give you an example of Clovis prices and Eureka, CA prices, listen to this: I own a 4 bedroom, 2 bath home, 500 sq foot playroom, 16X20 kitchen, large living room, large lot. All this is fenced. House well cared for and up to date in appliances and flooring. I bought the home in 1972 for $30,000.......and the home is worth over $450,000 right now. I used to live in Fresno, and do visit, often. I am amazed at how low the cost of homes is in Fresno. You did not mention if you own the home outright, or if it is a mortgaged home. If the home is in a good area, with all the things you want in a home, why would you even think of selling it, unless you could get a really fantastic price for it? It sounds as if you really did manage to buy well. In the beginning of summer, I would think you could expect an increase in the home's worth.
2007-03-13 08:09:44 · answer #2 · answered by laurel g 6 · 0⤊ 0⤋
You really can not say about RE market in CA. I will say people realize that it is to expensive for what you are getting and are waiting for affordable housing. For that price i hope u got tennis court, pool, privacy, etc. You got the house at a good price i hope it was worth it to u. I wonder is it investment property think about tax purposes too.
2007-03-13 08:06:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I agree with the previous poster- prices will continue to decline, but it sounds like you got it for below market value, so you have a built in margin of safety.
In regards to the lady who bought her house in 1972 for 30k which is now worth 450k- think what else you could have done. 1972 was 35 years ago. If you invested in stocks for a return of 10.7% (long term average return) your money would have doubled approximately every 72/10.7= 6.73 years. In the 35 years since you bought your house, that represents doubling your 30k 35/6.73= 5.2 times. The value today of that investment would be 30,000*2^(5.2) = $1,102,750. Over the long term, house prices move almost exactly in sync with the rate of inflation (except for short term imbalances).
2007-03-13 09:41:11 · answer #4 · answered by Cardinal Rule 3 · 0⤊ 0⤋
lf the housing market will go up soon then l will advice you to buy
that house so when next the opportunity comes when you feel the prices has dropped and you don't want the old house then you sell it to buy the house you really want.
2007-03-13 08:10:41 · answer #5 · answered by Edith B 2 · 0⤊ 1⤋
Normally, i would say yes, prices will continue to deline, but i think you got a hell of a deal.....take it and enjoy the house
2007-03-13 09:18:18 · answer #6 · answered by Anonymous · 0⤊ 0⤋