IrvineRenter_IHB
New member
[quote author="Informed_Decisions" date=1224917709][quote author="IrvineRenter" date=1224914560]BTW, everyone, please be nice to ID. It is nice to have a bull around.</blockquote>
For the record, I am neither a bull nor a bear. I am a realist.
To illustrate my point: I bought my first home in Irvine in Spring 2003, mentally prepared that it would drop 20% in price. I bought it for my growing family and the best schools, I didn't look to make a quick profit. I still hold it today as rental ($4500 monthly gross rent, compared to $478K original price). I jumped the gun last Nov to buy a forelclosure as primary residence (monthly mortgage payment approx $2300, with close to $499 in principal). I knew it might not be the lowest price yet, but I were able to get finaced then at 5.25% fixed 30 years.)
If I waited till I see every thing clearly, I would not have accomplished any of the above. Many people fail to appreciate opportunity costs, which is difficult to quantify. There are always risks when buying in a turbulent market. Without risks, so gone opportunities.
As a real estate professional, I don't make forecast, I only focus on finding today's best deals with a safety margin to hedge against future price erosion. Most people I work with are educated and well informed with realistic expectations. They have their own needs and priorities, my job is to help them balance and facilitate them.
National and state statitics does matter to me, but not as important as local market trends. As someone who is active in the market, I naturally see things other don't see. I calls these empirical data and gut feel. However, you don't have to take my words for it. These won't be relevant to you unless you enter the market.</blockquote>
I am sorry to read that you purchased a property last November. You managed to buy at the worst possible time. The first 20% drop in real estate values began with the credit crunch in August of last year and it has only briefly stabilized this summer. If you want to fully comprehend what a mistake this was, please read the post <a href="http://www.irvinehousingblog.com/blog/comments/timing-does-matter/">Timing Does Matter</a>.
As someone who is active in the market perhaps you see that prices are falling, transaction volumes are very low, the few buyers out there are falling out of escrow because they can't obtain financing. Contrary to what you imply, we are all active in the market. Our activity is watching and waiting. Anyone who watches a financial market and has the ability to participate is a part of the market. Most of the people on this forum could buy a house today if they wanted to. Most don't because they recognize the cost of buying too soon as outlined in the post I linked to above.
Most of the people buying today are not educated and well informed. They are served a heaping helping of bullshit that is washed down with gallons of kool aid. They will all regret their poorly informed choices a few years from now. They may have purchased with "gut feel," but soon they will be puking their guts out from all the stress of being underwater.
For the record, I am neither a bull nor a bear. I am a realist.
To illustrate my point: I bought my first home in Irvine in Spring 2003, mentally prepared that it would drop 20% in price. I bought it for my growing family and the best schools, I didn't look to make a quick profit. I still hold it today as rental ($4500 monthly gross rent, compared to $478K original price). I jumped the gun last Nov to buy a forelclosure as primary residence (monthly mortgage payment approx $2300, with close to $499 in principal). I knew it might not be the lowest price yet, but I were able to get finaced then at 5.25% fixed 30 years.)
If I waited till I see every thing clearly, I would not have accomplished any of the above. Many people fail to appreciate opportunity costs, which is difficult to quantify. There are always risks when buying in a turbulent market. Without risks, so gone opportunities.
As a real estate professional, I don't make forecast, I only focus on finding today's best deals with a safety margin to hedge against future price erosion. Most people I work with are educated and well informed with realistic expectations. They have their own needs and priorities, my job is to help them balance and facilitate them.
National and state statitics does matter to me, but not as important as local market trends. As someone who is active in the market, I naturally see things other don't see. I calls these empirical data and gut feel. However, you don't have to take my words for it. These won't be relevant to you unless you enter the market.</blockquote>
I am sorry to read that you purchased a property last November. You managed to buy at the worst possible time. The first 20% drop in real estate values began with the credit crunch in August of last year and it has only briefly stabilized this summer. If you want to fully comprehend what a mistake this was, please read the post <a href="http://www.irvinehousingblog.com/blog/comments/timing-does-matter/">Timing Does Matter</a>.
As someone who is active in the market perhaps you see that prices are falling, transaction volumes are very low, the few buyers out there are falling out of escrow because they can't obtain financing. Contrary to what you imply, we are all active in the market. Our activity is watching and waiting. Anyone who watches a financial market and has the ability to participate is a part of the market. Most of the people on this forum could buy a house today if they wanted to. Most don't because they recognize the cost of buying too soon as outlined in the post I linked to above.
Most of the people buying today are not educated and well informed. They are served a heaping helping of bullshit that is washed down with gallons of kool aid. They will all regret their poorly informed choices a few years from now. They may have purchased with "gut feel," but soon they will be puking their guts out from all the stress of being underwater.
