real estate help! 10 points. thanks?

Question

my aunt is looking to buy a house in south pasadena, california. is it a good time to buy? are the prices that low? or should she wait till next summer?

Answer 1

Hello Miss Trouble,

November and December seem to be the slowest times in the real estate business because people are preoccupied with the holiday season, therefore slower buyer traffic seems to drive down prices.

It is also rumored that mortgage interest rates my climb next year causing higher house payments therefore making a home less affordable slowing the market even more and creating more downward pressures on home prices.

The question is how low can housing prices drop, and unfortunately no one has that answer.

I believe that your aunt should start looking now in order to educate herself regarding the local South Pasadena housing market and plan on setting a late 2007 purchase before mortgage rates rise.

The likely hood of home prices falling drastically in the future is rather slim and the savings for a minor decrease in a home price is not worth the risk of a higher mortgage interest rate and payment.

And who knows, maybe housing prices have hit bottom already.

Don't forget to use a REALTOR with express knowledge of the neighborhoods you are interested in.

Good luck, hope I was of assistance.

Norm W...
REALTOR, socr

Answer 2

Ihave never understond those that inform someone to wait and purchase real estate.

Since 1940 real estate has only gone up in value. In 1940 you could buy a house for about $5000.00. Where in the hell can you purchase a house for that amount now.

5 years ago you could buy a house for $350,000 in California.
There are still a few places you can still purchase a house for that amount, but the average in Pasadena now is around $675,000 or above and is pretty stable, as a matter of fact I think the price have increased a bit.

I will relate a story a co-worker told me in 1979. He said "Buy real estate and wait" " Don't wait to buy real estate." The other saying he had about real estate was "The best time to purchase real estate was 20 years ago, the next best time to buy real estate is today."

Do anyone really think that the real estate market will continue for another 4-5 years. "NO" Real estate flippers and investors are still purchasing properties.

Real estate agents are still selling houses. Mortgage companies are still making mortgages. Qualifying might be a little tougher, but loans are being made never the less.

Tell your aunt to buy her house today, the price will probably be higher next year.

In 1992 there was a down turn in the real estate and mortgage markets, After a few months of correcting itself the market returned as strong as ever.

When the stock market goes down or falls no one tell the investors that invest in this market to stop investing, they just use a different strategy.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

While I agree that the best time to buy was 20 years ago...

If you're trying to time the market to get the best deal, deals are out there now.

The best time to buy real estate is when you can qualify for a 30 yr fixed loan and have the income to make the payments.

Real Estate is cyclical.......the subprime mess has affected both values and eligibility requirements today.

Housing will stabilize and go back up, that is for certain. When? That is a guess. Our population continues to rise and they aren't making anymore land.

Investors will keep buying up the deals and they will keep raising rents....that is also a certainty.

There are many California home buyer assistance, first time buyer and downpayment assistance programs for lower income Californians to help get into the housing market.
We use them all the time to get people into a home.

The state wants homeownership to stay high..........they are and will be scrambling to make sure homeownership is solid and grows in the state because statistically speaking homeownership is a positive for the state, its communities and families.

Pasadena in particular has atleast 4 different programs available for buyers who need assistance.

Holidays is the best time historically because it's slow that time of year and those selling must need to .....better deals.....In this market .....should be even better.
Summer is usually better for sellers than buyers historically.

I think the best time is when you qualify on a fixed rate 30 yr payment plan & in the winter time.
If you can afford that then a drop in price can be ridden out til they climb again.

Some say absolutely don't buy right now..........more deals after spring. Which has some truth with the bulk of ARM adjustments and people who overextended themselves and can't refi because they cant financially ride out the dip in prices.....the bulk of those will clear out alot in the market but those people will be renting from investors that recognize the deals.

Open Book Advisors™

Answer 4

The Pasadena market is still pretty good. Prices have not really dropped. Here are the stats from a current report:
Average house price is 650,000, which is up 15% from last year. 99% of houses are selling for asking price, and people are getting multiple offers. The average house is on the market for not longer than 30 days. It is a 50-50 buyer/seller market.

By the sounds of it, I think if she waits she may pay more next year.

Answer 5

Yes she should buy just off the strentgh of everyone saying that the market is doing nothing but going down. This alone will get her a great price. It it currently a buyers market so she has a better chance at getting a good price. Dont worry about the downturn(which personally I dont even think is going to happen) because real estate is like stocks you havent lost any money until you sell. The market will recover. Real estate has continued to be the one investment that is stable. Please stop listening to all these people who know nothing about real estate and just tell you what they heard on TV. Talk to a local realtor and they can let you know everything that you need to know about your market.

Answer 6

Yes, buy now, no matter what the price.

Long term, real estate seldom if ever falls in value.

Interest rates may be out through the roof next summer.
They could also be lower.You never know with the fed.

But the land is where the value is, not the structure on it.

Answer 7

I would wait. I don't foresee anything over the horizon that is going to stabilize the housing market. The amount of foreclosures is only increasing. The economy is slowing down.

Answer 8

The small condos are now down to about $300,000 ,
Is that low enough ?
An actual house , OK , that would be closer to $400K for a starter / fixer upper . . .

http://latimes.2.homescape.com:80/SCS/listing_result_list.jsp?calling_page=listing_result_list&affiliate_name=latimes&tab_num=1&geo_area_id=47792&sort_result_order=price_asc%2Cattribute_count%2Cprice_desc&page_num=1&reporting_search_name=hs2.0+refined


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Answer 9

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