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Has Home Prices Bottomed Out?
Posted: Sun Apr 06, 2008 2:43 am
by sambasambo1
Could you give me an insight on has the home prices bottomed out. If not, any idea on what is your gut feeling/pointers on when it will bottom out (especially in LA/Southern California)?
Has Home Prices Bottomed Out?
Posted: Sun Apr 06, 2008 4:44 am
by GutsyGibbon
Tricky situation for people who want to upgrade to a new home. Should not be an issue for first time home buyers. Cities like SD saw double digit growth for quite some time, now it has come down a lot. Its hard for anyone to predict the absolute bottom, but its currently a buyers market with low interest rates offerred by banks. If the plan is to stay put in the city for the next 3-5 years, it may not be a bad thing to buy right now.
-GG
Has Home Prices Bottomed Out?
Posted: Sun Apr 06, 2008 6:07 am
by sambasambo1
GutsyGibbon;93208Tricky situation for people who want to upgrade to a new home. Should not be an issue for first time home buyers. Cities like SD saw double digit growth for quite some time, now it has come down a lot. Its hard for anyone to predict the absolute bottom, but its currently a buyers market with low interest rates offerred by banks. If the plan is to stay put in the city for the next 3-5 years, it may not be a bad thing to buy right now.
-GG
Thanks GG for the reply. Could you enlighten me on why do you say it should not be an issue for first time home buyers.
I was going through other discussions. It seems renting is a better option than purchasing the home with difficulties associated with selling etc.,.
Is it feasible to go ahead on with the home purchase
if one's monthly rent is GREATER than
monthly payment + monthly property tax + insurance - monthly tax beneift (Assuming absolute minimum down payment).
Has Home Prices Bottomed Out?
Posted: Sun Apr 06, 2008 9:02 am
by abuSibu
sambasambo1;93212if one's monthly rent is GREATER than
monthly payment + monthly property tax + insurance - monthly tax beneift (Assuming absolute minimum down payment).
For 3 to 5 year term, renting is a better option.
Even if you rental house cost as much as your monthly payment, you will comeout ahead as you don't have brokerage fee when you sell. Also if you plan on getting a mortgage, you will have additional county taxes to pay (not to mention lender fees, if any).
Owning a single family home in the US is a lifestyle choice, not an investment option.
Has Home Prices Bottomed Out?
Posted: Sun Apr 06, 2008 7:06 pm
by direstraits88
sambasambo1;93212Thanks GG for the reply. Could you enlighten me on why do you say it should not be an issue for first time home buyers.
I was going through other discussions. It seems renting is a better option than purchasing the home with difficulties associated with selling etc.,.
Is it feasible to go ahead on with the home purchase
if one's monthly rent is GREATER than
monthly payment + monthly property tax + insurance - monthly tax beneift (Assuming absolute minimum down payment).[/quote]
This is a handy tool to figure out a breakeven.
http://www.dinkytown.net/java/MortgageRentvsBuy.html
If you don't plan to live in the house for next 5 years, it may not be worth the hassle... There's potentially no price appreciation in the next 3-5 years.
Has Home Prices Bottomed Out?
Posted: Sun Apr 06, 2008 10:19 pm
by cadude
abuSibu;93226For 3 to 5 year term, renting is a better option.
Even if you rental house cost as much as your monthly payment, you will comeout ahead as you don't have brokerage fee when you sell. Also if you plan on getting a mortgage, you will have additional county taxes to pay (not to mention lender fees, if any).
Owning a single family home in the US is a lifestyle choice, not an investment option.[/quote]
Great way of putting it.
Has Home Prices Bottomed Out?
Posted: Sun Apr 06, 2008 10:34 pm
by ILuvHyd
Also add a ~ 10% transaction cost for a whole buy-sell transaction to cover realter fees, taxes etc. The longer you stay in a home the better as the cost is spread over the years and typically it's around 7 years. The average house appreciation is pretty much on par with inflation, so no net gain and may be negative especially when you take account of depreciation of the house itself.
I agree with nicely put closing remarks of
abuSibu in
#4abuSibu;93226Owning a single family home in the US is a lifestyle choice, not an investment option.[/quote]
Has Home Prices Bottomed Out?
Posted: Wed Oct 13, 2010 10:04 pm
by karagg
How are the home prices US in general and the following Metros in partuicular.... Have they bottomed out?
1. Northern California (SFO Bay Area)
2. Southern California (LA)
3. Dallas
4. Seattle
5. Chicago
6. Dallas
7. NY/NJ
8. Washington DC/VA
9. Atlanta
10. Boston
Has Home Prices Bottomed Out?
Posted: Wed Oct 13, 2010 10:17 pm
by gwldaddu
karagg;339401How are the home prices US in general and the following Metros in partuicular.... Have they bottomed out?
1. Northern California (SFO Bay Area)
2. Southern California (LA)
3. Dallas
4. Seattle
5. Chicago
6. Dallas
7. NY/NJ
8. Washington DC/VA
9. Atlanta
10. Boston
Your question is too specific.
Can you broaden the scope of your question?
Has Home Prices Bottomed Out?
Posted: Wed Oct 13, 2010 11:41 pm
by samv
My view from the ground:
They are at their bottom for the desirable areas of So. Cal (i.e. good schools, 30mins or less from job centers) - There seems to be many many buyers for these and not a lot of supply.
However, having said that do not expect them to start rising 10% a year any time soon from here. [ Most likely those days will never come back in a generation!]. IMO prices will stagnate at these levels for a long time till the incomes catch up.
So if you are thinking of investing, there is no return. If you are looking to buy a nice house to live in and can afford it (and not overly concerned about return), this might be the best time in the last 10 years....
karagg;339401How are the home prices US in general and the following Metros in partuicular.... Have they bottomed out?
1. Northern California (SFO Bay Area)
2. Southern California (LA)
3. Dallas
4. Seattle
5. Chicago
6. Dallas
7. NY/NJ
8. Washington DC/VA
9. Atlanta
10. Boston