In California do you expect the housing market to get worse?

Question

I want to buy a house next spring. I can buy now. But at a higher interest rate and a mortgage I can't afford. Will the price of homes go down? I need to wait as my BK will be 2 years out in April. When do you think the housing industry will bottom out? I've noticed just in the last 3 months. The prices have come down a lot.

Answer 1

The prices of houses are going down now because they reached a point where no one was buying due to excessively high prices. So now they are going down a lot. They'll keep going down for a while until everyone starts buying again. Around my area (i live in Orange County) i just recently saw a 4 bedroom, 4 bath for $649,000 which is the lowest I've seen in a really long time

Answer 2

Here is the problem. 75% of the American population makes under $60,000 a year. The average wage where I live is about $40,000 while the average price was up to $640,000 this year. With the 2 1/2 rule, the person making $40,000 can only afford a $100,000 house while a couple making $80,000 can afford a $200,000 house. The greater the spread from what they can afford and what they pay for (if the price is higher than what they can afford) increases the likelyhood that they had no intentions of owning the home for the extent of the mortgage.

So find the average wage of the homeowner (treat couples as one wage) in the area, multiple it by 4 and I think that's that's where it's going.

Answer 3

Home prices have come down, because no one is buying. It's been just too risky.

I wouldn't count on predictions. Predictions have been made how many times now? Even the experts in this field were wrong.

For whatever reason no one thought any big changes in the housing market would take a dive as it has. War does a lot of things to a lot of people.

The decision is up to you. Actually, you answered your own question, interest rates and mortgage.