Home price is still spiraling downward. Why people are buying?

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suckers_IHB

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? One in every 416 U.S. households received a foreclosure filing during 2nd Quarter of 2008.



? The median sales price fell 9.5 percent to $203,100, the largest price decline in records dating to 1999.



? The DOW in 10/18/07 was at $13,888. As of today the DOW is at $8,852.



? In August, California ranked at the bottom 48 of 51 on Unemployment Rate (7.7%)



? U.S. National Debt = $10,337,317,030,292. The National Debt has continued to increase an average of $3.45 billion per day.



This morning I downloaded Orange County homes sold (minus Banks? Foreclosures) for the last 3 months. I was surprise to see the results. We all know that home prices will continue to fall at least until the end of 2009.



So why are people still buying? Am I clueless?
 
Astute Observer,



You really think that we are at the bottom? The basic law of supply and demand is the primary driver in the home market. At this point, we have more troubled home owners than buyers. Thus supply will be there for at least another year. Also, the last wave of loan resets will happen in 2009. Supply will open up more.



I don't think the $700B bailout will save most home owners. That bailout was to psych financial firms to unfreeze credits.



Final thought, home prices have been dropping dramatically. This has been due to the burst. However, recovery will take 3 plus years to normalize. I don't believe home prices will go back at the end of 2006 level in less than 6 years. The 90's home market trend took 3 years to move in positive trend.



I have been searching for home last 8 months. There were moments when I almost pull the trigger. I am glad that I did not rush. I could have lost all my down payment, now that I am looking back.
 
[quote author="Suckers" date=1224380268]



You really think that we are at the bottom? </blockquote>


You asked (to paraphrase) "why are people being stupid" and he told you.
 
I will buy now if I find a good place in Irvine for a reasonable price per sq ft. in one of my target neighborhoods.



Why? Because we're getting closer to rental parity, and I would actually save money with the tax write off. Now, you're going to tell me "but prices might decline another 20%". So what? So my downpayment gets wiped out? Its not like I won't be able to save for another one, and i'll be able to save even more with the tax savings.



I'm going to be a move up buyer in 5-7 years anyway, so if the condo I pick up declines 20%, my move-up target house will go down 20% too. So financially, i'll be better off if things continue to depreciate once I buy!



Like I said, I'm not going to buy *right* now, since inventory is actually pretty low in the places I like, but if in the next few months I can get a steal on some REO, i'll pull the trigger.
 
[quote author="xsocal land merchant" date=1224386553]No_Vas



You know that it is always a good time to buy. Whats wrong with you??



Enjoy</blockquote>


Apparently I missed the party:



<object width="325" height="250"><embed src="http://www.youtube.com/v/youtube" type="application/x-shockwave-flash" width="325" height="250"></embed></object>



As of this afternoon, my car now has a floor mount parking brake handle from a 2003 Mustang. Unless I tell you I did it, you won't be able to tell it wasn't OE Ford.
 
Everyone kept saying it a good time to buy, but in our area of Huntington Beach, I don't see anything good to buy?



These 1200 sq fts are still going for $ 550K-599K...and these fixer upper. I just can't imaging paying for half a million dollar home for a fixer upper. It is not affordable yet!
 
Tulip:

We must be looking in the same area of Huntington Beach. I've had my eye on moving back close to my childhood neighborhood, but it's simply not worth it for me yet.
 
i watch these houses too. 1950s/60s 3/2s on 5000 or so. 92646 and nearby FV. they've dropped $50-100k in the last year. and very little has been selling.



i predict another $100k in the next 8 months or so.
 
I am looking at 92647. BTW Gothard to Bolsa Chica and Bolsa to Talbert.



We found a house near the kids school... 3bedroom, 2 baths need lots of fixing listing for $ 539K. By the time you are done upgrading the kitchen, the roofs, carpet, new coat of paint inside and outside...it might cost you additional $ 100K.



Still not affordable yet!
 
[quote author="tulip" date=1224503557]I am looking at 92647. BTW Gothard to Bolsa Chica and Bolsa to Talbert.



We found a house near the kids school... 3bedroom, 2 baths need lots of fixing listing for $ 539K. By the time you are done upgrading the kitchen, the roofs, carpet, new coat of paint inside and outside...it might cost you additional $ 100K.



Still not affordable yet!</blockquote>


I have recently purchased vintage locksets and knobs for old doors. Locksets made after 1940's would not fit my doors. Vintage light fixtures and window hardwares also were also extremely expensive. $100k disappeared quickly.
 
[quote author="bkshopr" date=1224554398] $100k disappeared quickly.</blockquote>


You need wasabi base boards. That will get you back on budget.
 
[quote author="bkshopr" date=1224554398][quote author="tulip" date=1224503557]I am looking at 92647. BTW Gothard to Bolsa Chica and Bolsa to Talbert.



We found a house near the kids school... 3bedroom, 2 baths need lots of fixing listing for $ 539K. By the time you are done upgrading the kitchen, the roofs, carpet, new coat of paint inside and outside...it might cost you additional $ 100K.



Still not affordable yet!</blockquote>


I have recently purchased vintage locksets and knobs for old doors. Locksets made after 1940's would not fit my doors. Vintage light fixtures and window hardwares also were also extremely expensive. $100k disappeared quickly.</blockquote>


bk - do you use skeleton keys and warded locks in your house too? I like those.
 
[quote author="SoCal78" date=1224564384][quote author="bkshopr" date=1224554398][quote author="tulip" date=1224503557]I am looking at 92647. BTW Gothard to Bolsa Chica and Bolsa to Talbert.



We found a house near the kids school... 3bedroom, 2 baths need lots of fixing listing for $ 539K. By the time you are done upgrading the kitchen, the roofs, carpet, new coat of paint inside and outside...it might cost you additional $ 100K.



Still not affordable yet!</blockquote>


I have recently purchased vintage locksets and knobs for old doors. Locksets made after 1940's would not fit my doors. Vintage light fixtures and window hardwares also were also extremely expensive. $100k disappeared quickly.</blockquote>


bk - do you use skeleton keys and warded locks in your house too? I like those.</blockquote>


Yes, all doors are skeleton keys except for the front door. No locksmith can create the keys from existing locksets. The only method was to remove the lockset and go to the biggest vintage hardware specialist and insert many keys to find the right one. I still have several locks without keys.
 
[quote author="no_vaseline" date=1224555216][quote author="bkshopr" date=1224554398] $100k disappeared quickly.</blockquote>


You need wasabi base boards. That will get you back on budget.</blockquote>


Or remove all the teeth from k-9s
 
sheesh, Talk about old school. I love it, but not that much. I'd probably do some sort of electric thumb print on the door or something. Maybe card swipe and keycode...



-bix
 
[quote author="biscuitninja" date=1224571799]sheesh, Talk about old school. I love it, but not that much. I'd probably do some sort of electric thumb print on the door or something. Maybe card swipe and keycode...



-bix</blockquote>


I love technology too but I can't keep up with it. Antique, I can learn it once and it is forever. The same are also true for Disneyland. Tomorrowland has been altered 6 times since 1956 and Sleeping Beauty's Castle and Snow White's cottage stood there for 3 generations.
 
[quote author="bkshopr" date=1224565192][quote author="no_vaseline" date=1224555216][quote author="bkshopr" date=1224554398] $100k disappeared quickly.</blockquote>


You need wasabi base boards. That will get you back on budget.</blockquote>


Or remove all the teeth from k-9s</blockquote>


Mrs. Vas continues to argue your dog needs purpose, and because it has none, it has chosen the destruction of your baseboards as it's lot in life.



She suggests:



<img src="http://www.doggonegoodstuff.com/Pictures/realmarrowbones.jpg" alt="" />



<a href="http://www.doggonegoodstuff.com/realmarrowbones.html">http://www.doggonegoodstuff.com/realmarrowbones.html</a>



Or the treat dispensing ball:



<a href="http://www.busydogball.com/products.htm">http://www.busydogball.com/products.htm</a>
 
[quote author="Astute Observer" date=1224376446]1, This is the bottom

2, There is no better time to take advantage of the low interest rate, lock in before it is too late

3, The inventory is large so there is more choices for the buyer

4, The buyer market may be gone next week due to the decreasing inventory

5, The price dropped 20% already, so you saved $200,000 right now

6, You and your family deserve a comfortable home</blockquote>


Nice Real Estate psycho babble:) Is you name Lawrence Yun?
 
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