Keep renting for $500/mo or Buy? (Lancaster, Palmdale: credit, equity, foreclosures)

[Blockheadofaknew]

My wife and I have been renting a 3 bdr, 1 br home in an older part of Lancaster, Ca for about 9-10 years now. We both have better career jobs now and we want a better home for ourselves as well as our two teenaged boys closer to our work & their school in Palmdale. If we waited this long to own our own home, would it make sense to wait a little longger for what the "Market" is experiencing? We were around when this town went through it's Foreclosures, and we know the kinds of prices that we missed out on. I don't think that Foreclosure prices this time around will be as substantly as low as back then, but I can't help but wonder if its woth it to wait another year or so because our rent is so cheap and all? PPLLLEEASE!! Help us decide. [/font]
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[EscapeCalifornia]

Like the old saying goes, never try to catch a falling knife. Buying into a falling market is very risky. You're better off keeping a very, very close eye on the market and buying when things start heading up a bit. In the mean time, keep banking the money you're saving by having such cheap rent. On the other hand, if you KNOW you'll be there for 20 years, there's no bad time to buy. The problem is, lots of people wind up needing to move before they thought they would. That's where the market can bite you.

[justsomeguy]

Originally Posted by Mr Bungle

My wife and I have been renting a 3 bdr, 1 br home in an older part of Lancaster, Ca for about 9-10 years now. We both have better career jobs now and we want our own home closer to our work in Palmdale. If we waited this long to own our own home, would it make sense to wait a little longger for what the "Market" is experiencing? We were around when this town went through it's Foreclosures, and we know the kinds of prices that we missed out on. I don't think that Foreclosure prices this time around will be as substantly as low as back then, but I can't help but wonder if its woth it to wait another year or so because our rent is so cheap and all? PPLLLEEASE!! Help us decide.

I'm not sure where Lancaster and Palmdale are located, but for the record, the housing malaise is worse in some areas than others. Did houses in your area appreciate 300% over 3 years like in SD, LA, SF, etc.? Or was their not much appreciation? If not, your market may not be in "freefall" like some of the other markets, and prices may not be overinflated like the other markets, in which case, maybe you should buy. Though $500 mo. rent is AWFULLY cheap.

[OutOfSoCal]

I am pretty sure landcaster is falling a little worse than most other So Cal areas, with the exception of riverside area. 500 for rent for a house is cheap cheap cheap. I would wait until the end of next summer and see what the market is doing. Or look carefully and when you see fewer houses on the markets and prices starting to stabilize start looking for a deal.

[Blockheadofaknew]

FYI. Palmdale is the fastest growing city in Ca. The building out here has just been overkill for more than 7-8-9 years now, and the say that buying is now finally coming pretty slow. That is why I think it's best to wait it out awhile. Even though buying homes seems to be slowing, they are still building around evey corner that you look, because of land purchase, contracts, or whatever.

[kturbe]

I think it would help if you identified how far you want to the market to fall and what indicator you are waiting for to say it is a good time to buy. The paper, "We have hit rock bottom, no more anticipated, go buy"?

The answer really depends on what you are looking for and if you find a home that has those ammentities and you can review credible numbers with a professional and they work for you then it is a good time to buy. Have them focus on homes that are priced 3-10% below the current market.

Should we get to the point that The Housing Gods say We have hit rock bottom now, the investors will have picked up all those properties by the time the news gets out.

The prices have come down, interest rates are still low, if you can qualify and you are not extending yourself go for it!

Should you need help finding a professional to help you determine your options please do not hesitate to contact me direct.

[Blockheadofaknew]

I am in fact talking ROCK BOTTOM, it's a little sad and may seem selfish I know, but when a credit-card holder as my self am, and one who in the past watched as GMAC towed my car away on a repo for a few late payments,,,, but the $250 payments were coming none the less; are treated more as a number than a customer, then yeah, i'll fix up a little stressed out house whom the bank ripped off of a CUSTOMER in their same swindling fashion. I guess what I'm tring to say is that I would have a hard time paying 300k for something that a few years back i saw for 110- 120k, Oh , and was that your local paper that read those words? because I'm talking Lancaster/Palmdale here, where people are paying way more for houses than what they even realize.

[justsomeguy]

I guess we should also keep in mind this guy is talking about buying a foreclosed house - so he could still get quite a deal, he might be buying well below market value, even "future" market value, as prices continue to decline. Though admittedly I know next to nothing about buying foreclosed properties.

I would say your best bet is go to some auctions, see if you find a house you really like, decide how much you want to spend or how much you think the house is worth, and if you can get in on it at that price, why not buy it I guess.

[Livewire]

Originally Posted by Mr Bungle

My wife and I have been renting a 3 bdr, 1 br home in an older part of Lancaster, Ca for about 9-10 years now. We both have better career jobs now and we want a better home for ourselves as well as our two teenaged boys closer to our work & their school in Palmdale. If we waited this long to own our own home, would it make sense to wait a little longger for what the "Market" is experiencing? We were around when this town went through it's Foreclosures, and we know the kinds of prices that we missed out on. I don't think that Foreclosure prices this time around will be as substantly as low as back then, but I can't help but wonder if its woth it to wait another year or so because our rent is so cheap and all? PPLLLEEASE!! Help us decide. [/font]
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Heck if you move, I'll take your apt, thats a STEAL of a price out there, and I just posted a question in here ('Year Round Work') regarding moving back home to Calif.
Chances are very high, that housing prices will never drop to what they were just 4 years ago, BUT, they might just drop low enough to be more affordable for many people. I hope, someday, to build my own little cottage home on some small piece of land either in Calif, WI or Ok, depending on which direction I go, where the work is.

[sheri257]

I'm familiar with the high desert market and I'd definitely wait ... prices are probably going to get a lot lower, even with foreclosures. For one thing, the banks aren't taking less money yet ... but they will.

You don't want to get into an immediate negative equity situation by buying on the downslide.

IMO, we probably won't see the bottom for a couple of years.