Looking to buy a home in 4-6 months...? (Long Beach, Sacramento: short sales, foreclosures)

[slrn]

I have been doing a lot of research on the housing market, homes, etc. I have been waiting to buy a home for a few years (college graduate, new job, getting hitched), and will be a first time buyer. My fiance and I have two steady incomes, and will be renting the third room out to supplement our mortgage.

We have been finding 3br/2ba homes in Long Beach (90805, 90813, 90810) for 300k and below. I am hoping to find a 3br/2ba (slight fixer OK) for less than 200k. I have no problem with these areas, as I have found many decent and cleaned up blocks in North Long Beach.

I am most interested in the South Bay, as I work at a hospital in Carson, and I am open to all surrounding areas (Lomita, Gardena, Torrance, San Pedro etc.).

Does this seem reasonable to most?

Some of the agents seem apprehensive (commision?) that I will find anything better that what we are seeing now, however, I feel as if waiting a few months will pay off.

Any thoughts?

[Charles]

Originally Posted by slrn

I have been doing a lot of research on the housing market, homes, etc. I have been waiting to buy a home for a few years (college graduate, new job, getting hitched), and will be a first time buyer. My fiance and I have two steady incomes, and will be renting the third room out to supplement our mortgage.

We have been finding 3br/2ba homes in Long Beach (90805, 90813, 90810) for 300k and below. I am hoping to find a 3br/2ba (slight fixer OK) for less than 200k. I have no problem with these areas, as I have found many decent and cleaned up blocks in North Long Beach.

I am most interested in the South Bay, as I work at a hospital in Carson, and I am open to all surrounding areas (Lomita, Gardena, Torrance, San Pedro etc.).

Does this seem reasonable to most?

Some of the agents seem apprehensive (commision?) that I will find anything better that what we are seeing now, however, I feel as if waiting a few months will pay off.

Any thoughts?

My only thought would be to consider four bedroom homes - even though it may be more expensive. I think four bedrooms homes are in higher demand.

[bhcompy]

under 200k i dunno for that size.. it will be welcome if we see it though

[Soccersupporter]

Originally Posted by bhcompy

under 200k i dunno for that size.. it will be welcome if we see it though

If a four bedroom house ever goes for $200,000 the whole CA economy will have collapsed. Sorry, but just reality.

[BRinSM]

From everything I've been reading, towards the end of 2008 is when the first phase of Option ARMs will begin resetting. Apparently the effect of this will make the more recent subprime/credit crisis look like a drop in the bucket as a very large percentage of mortgages that were written in the past 5 years came with adjustable rates. With that said, if the Fed starts increasing interest rates again, many people are not going to be able to afford their new mortgage payments and we're going to see a lot of more short sales and foreclosures as the current credit crisis will keep people from being able to refinance into fixed rate mortgages.

Personally, my wife and I will consider buying something in the semi near future, but we're thinking next summer at the earliest. I have no interest in being "underwater" just to own my own home.

[Soccer_Mom]

I think prices will continue to drop for a couple of years more, the biggest differences seen in homes $500k and up.
Entry level homes around $200-$300k won't drop a whole lot more IMO.

Take my words with a grain of salt, but if you find a home you like, priced right and you have a steady job, why not buy now?
When the prices start going up again everyone will go crazy outbidding each other and the cheapest homes will go very fast.

Good luck on whatever you decide.

[IcantSELLmyHouse]

Originally Posted by Soccersupporter

If a four bedroom house ever goes for $200,000 the whole CA economy will have collapsed. Sorry, but just reality.

You are right when you say its Reality, it is and it is very possible.California is not to far off now. California is a tourist state and with gas at $4 plus a gallon lots and lots of people will not be coming to the State this summer. They just do not have the money and then it trickles down into the economy. Time will tell. The State is not even close to being done with Foreclosures there are alot more coming and the banks now are lowering prices to unload them. Dont hold me to this but I heard they will lower a Foreclosure 2% a month until a buyer comes around and from what I see and hear that sounds pretty accurate. Just my 2 cents.

[eureka1]

If you're locked into LA you're locked into $300K-$400K houses even with the current rebound. In Sacramento, according to this morning's Bee, Countrywide is selling off 2000 sf homes with triple garages, a pool and spa in Elk Grove for under $250K and some (I assume townhouses) for $180K. These are homes that listed for $400k at one point and Sac is a much better place to live than LA. Just my opinion. Good luck in your search.!