To buy it or not to buy
- Thread starter renter1
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Rising mortgage rates will put downward pressure on prices, but nobody expects rates to move much above the low-4s for the next year or two. If the timing is right for your family, the house will suit your family's needs for many years (7+), and you're financially prepared, then yes. You should buy.
By "financially prepared," I mean you have at least 10% to put down, your back-end DTI won't be near 40%, and your front-end DTI won't exceed 30%.
And at that price point, I'm positive you are not working at Taco Bell serving qwertaco and ps9 their Boss Crunch Wraps, so if you think your employment situation is stable enough, and you said you can afford... good luck to you.
There were even a few that barely dropped at all if any (we bought at peak, sold it closer to the bottom and was only 5% less than our peak purchase price).
This is why so many people buy homes in Irvine, because they see their highs/lows compared to surrounding cities and it seems to drop slower, rise faster and bounce back better.
oceanmonkey
New member
buy buy buy. everyone needs a roof.
Perspective
Well-known member
renter1 said:
Rising mortgage rates will put downward pressure on prices, but nobody expects rates to move much above the low-4s for the next year or two. If the timing is right for your family, the house will suit your family's needs for many years (7+), and you're financially prepared, then yes. You should buy.
By "financially prepared," I mean you have at least 10% to put down, your back-end DTI won't be near 40%, and your front-end DTI won't exceed 30%.
irvinehomeowner
Well-known member
Affordability and stability are the 2 main keys to buying.
If you have/make enough money and won't have to move/change jobs in 7-10 years, it's okay to buy... even at peak.
If you have/make enough money and won't have to move/change jobs in 7-10 years, it's okay to buy... even at peak.
irvinehomeowner
Well-known member
Most can judge if they are able to keep a job for 5+ years, or at least stay in the area with knowledge you can easily find work in your particular industry/job set if you had to.renter1 said:
And at that price point, I'm positive you are not working at Taco Bell serving qwertaco and ps9 their Boss Crunch Wraps, so if you think your employment situation is stable enough, and you said you can afford... good luck to you.
pricedoutJay
New member
I'm in the same boat and I believe so are many people except FCBs and investors who are in decline.
I started looking 1.5 years ago. Yes I missed the boat already then but my situation didn't allow me to buy anything pre-2014. Anyway, I started seeing less homes in the market while the price was sky rocketing. I didn't find any house that I liked within my budget. I guess I could've bought any house within my limit for the sake of buying a house but didn't and wonder if I should've.
Now I'm looking to buy something early next year. It may still be the peak before the market goes down for many years (or flat), but my personal finance is getting a lot better and we are in industry/job that won't be affected too much by global/macro economy. That said, I still won't buy anything for the sake of buying one. I will have to make sure my wife and I both like the house and can picture us being there until retirement. I will also make sure that I'm mentally prepare for something like 30% drop in value (I'm thinking that could be the worst worst case in Irvine since last "crash" in 2009 and 2010 only yielded something like 15 to 20% drop in some area of Irvine for SFH). But who knows? After the I buy a house, it drops 5% in 2 years then we go to SF or San Jose level in 5 to 10 years???
I started looking 1.5 years ago. Yes I missed the boat already then but my situation didn't allow me to buy anything pre-2014. Anyway, I started seeing less homes in the market while the price was sky rocketing. I didn't find any house that I liked within my budget. I guess I could've bought any house within my limit for the sake of buying a house but didn't and wonder if I should've.
Now I'm looking to buy something early next year. It may still be the peak before the market goes down for many years (or flat), but my personal finance is getting a lot better and we are in industry/job that won't be affected too much by global/macro economy. That said, I still won't buy anything for the sake of buying one. I will have to make sure my wife and I both like the house and can picture us being there until retirement. I will also make sure that I'm mentally prepare for something like 30% drop in value (I'm thinking that could be the worst worst case in Irvine since last "crash" in 2009 and 2010 only yielded something like 15 to 20% drop in some area of Irvine for SFH). But who knows? After the I buy a house, it drops 5% in 2 years then we go to SF or San Jose level in 5 to 10 years???
irvinehomeowner
Well-known member
Yep. I would say the "crash" only affected a minority of Irvine homes drastically.pricedoutJay said:
There were even a few that barely dropped at all if any (we bought at peak, sold it closer to the bottom and was only 5% less than our peak purchase price).
This is why so many people buy homes in Irvine, because they see their highs/lows compared to surrounding cities and it seems to drop slower, rise faster and bounce back better.
Perspective
Well-known member
That's the right attitude - Buy when you find something you both like enough to pay the enormous price, that you can reasonably afford, and that you can reasonably see your family living in for many years, if not decades.
pricedoutJay
New member
I agree with Irvinehomeowner.... for now and maybe for the short term.
I mean more expensive cities nearby or even some multi million dollar homes in parts of Irvine actually got hit harder than most of Irvine homes near and between 5 and 405 freeways during 2009 ~ 20012.
Now may concern is what can happen, let's say, in 5 years. Can Irvine stay as strong as it's been the past 25 years or so? Traffic is getting worse and population is growing fast. New "affordable homes" are getting smaller and smaller. More owners who bought their homes in 80s and 90s are moving out of Irvine or renting their homes and live in different cities. This may not be necessarily bad but if Irvine was so great place to live, why wouldn't they stay in their homes instead of renting them out to strangers?
In my opinion (I have two kids), IUSD is over rated also. High API scores are mainly due to Tiger moms and Helicopter parents... I don't see IUSD teachers are so much better than other district teachers. May be students are better behaved... I see talents in school sports and volunteerism (?) are going down since many FCBs and FOBs mostly focus on SAT, GPA, and music talents (this is purely my personal observation).
I know I'm rambling... I don't see Irvine becoming Compton anytime soon and the value of the homes will still be supported but the quality of community and personal life, I am not 100% sure... May be I'll move out of Irvine when I get older...
I mean more expensive cities nearby or even some multi million dollar homes in parts of Irvine actually got hit harder than most of Irvine homes near and between 5 and 405 freeways during 2009 ~ 20012.
Now may concern is what can happen, let's say, in 5 years. Can Irvine stay as strong as it's been the past 25 years or so? Traffic is getting worse and population is growing fast. New "affordable homes" are getting smaller and smaller. More owners who bought their homes in 80s and 90s are moving out of Irvine or renting their homes and live in different cities. This may not be necessarily bad but if Irvine was so great place to live, why wouldn't they stay in their homes instead of renting them out to strangers?
In my opinion (I have two kids), IUSD is over rated also. High API scores are mainly due to Tiger moms and Helicopter parents... I don't see IUSD teachers are so much better than other district teachers. May be students are better behaved... I see talents in school sports and volunteerism (?) are going down since many FCBs and FOBs mostly focus on SAT, GPA, and music talents (this is purely my personal observation).
I know I'm rambling... I don't see Irvine becoming Compton anytime soon and the value of the homes will still be supported but the quality of community and personal life, I am not 100% sure... May be I'll move out of Irvine when I get older...
If you started looking 1.5 years ago, were prices that much lower? I don't really feel like prices have moved over the past year (especially not on the resale front). I realize their are exceptions (in terms of select new home tracts or the absurd pricing in most of BP) but all we have seen is increasing supply. Even 1.5 years ago, their hasn't been big movement, with some rare exceptions (i.e., you could have jumped into PP about 1.5 years ago or Strada before the big run-up).pricedoutJay said:
Traffic is inevitable as there's population growth.
People are renting out probably because they can.
Large population in Irvine are educated and promotes education for their own family, more so than most other cities.
So they can afford to rent out their house in Irvine.
Irvine needs to have jobs and the population to believe in education, if so, Irvine will be sought after.
Also, if you are educated and value education, less likely to have violent crimes = safer city = greater home value
People are renting out probably because they can.
Large population in Irvine are educated and promotes education for their own family, more so than most other cities.
So they can afford to rent out their house in Irvine.
Irvine needs to have jobs and the population to believe in education, if so, Irvine will be sought after.
Also, if you are educated and value education, less likely to have violent crimes = safer city = greater home value
