Buying a house this year? What are your experiences? (Santa Clarita: for sale, real estate market)

[69Charger]

This should be an interesting thread. Here's what we've gone through, so far.

Saved up 5% down. Doing a conventional 95% loan, rate 4.2% as long as all buyers FICO's are above 720. If you're married, they use both your scores no matter what.

Competition is pretty fierce. Turn-Key homes are having offers on them in less than 2 weeks and selling quickly.

I'm not seeing major bidding wars. I've seen some people offer a few grand more than the other person, but nothing too big. Perhaps this is because lending is tighter than it was during the Bubble Mania, and appraisals are staying fairly accurate for the comps.

We are definitely in a market of unknowns. But this is also macro not just SoCal. Interest rates, the economy, and future building are all wild cards.

[ryanms3030]

I bought last year and I'm not a real estate market expert. But where I live in Santa Clarita I have seen several houses go up for sale recently and sold within a couple of weeks and they are going for about $600k+ for 3 beds and $700k+ for 4 bedrooms. Neighbors sold recently and now the house across the street from them is for sale. There is also HOA fees here and some homes have mello roos too and doesn't seem to be deterring any sales

[CA4Now]

Originally Posted by 69Charger

Saved up 5% down.

With 5% down, your monthly mortgage payment must be astronomical.

[DawnW]

We plan to buy in the late summer/early Fall so I can't comment on experiences yet, but I have been talking to people.

Thankfully we will have 20% to put down, and probably more, but we may save out the surplus to use as cash to fix up the house, as we do not intend to buy a turnkey condition house.

[RockyRoadg]

Go 15 yr. and not 30 the payment is not that much more and you will save hundreds of thousands.

[DawnW]

Originally Posted by RockyRoadg

Go 15 yr. and not 30 the payment is not that much more and you will save hundreds of thousands.

With 5% down on a possible $700K house, the difference in cost in more than "not that much more."

We aren't sure what we will do, we are considering getting a 30 and paying like a 15, but allowing for things like one of us losing our jobs, to have the option to go back to reg. payments if necessary.

[adr3naline]

Originally Posted by CA4Now

With 5% down, your monthly mortgage payment must be astronomical.

The reality is this is the case for many new home buyers in LA. 20% down on an entry-level starter home is ~$120k. Normal people are not able to save $120k, and instead bite the bullet on 3-5% terms ($30k).

[Lovehound]

Originally Posted by RockyRoadg

Go 15 yr. and not 30 the payment is not that much more and you will save hundreds of thousands.

What is the interest rate difference? You know you can take out a 30 year loan and then simply add additional payments to principal to your monthly payments and pay off your 30 in 15?

Originally Posted by DawnW

With 5% down on a possible $700K house, the difference in cost in more than "not that much more."

We aren't sure what we will do, we are considering getting a 30 and paying like a 15, but allowing for things like one of us losing our jobs, to have the option to go back to reg. payments if necessary.

You get it! That's what I did. Paid my 30 in about 17.

To my mind buying a house in L.A. is not being able to afford the payments, it's being able to afford the property taxes! Don't believe that 1.25% stuff. That doesn't include all the junk that outside agencies add. I'd call it more like 1.65% giving your $700K house $11K-$12K/year in property taxes.

Originally Posted by ryanms3030

I bought last year and I'm not a real estate market expert. But where I live in Santa Clarita I have seen several houses go up for sale recently and sold within a couple of weeks and they are going for about $600k+ for 3 beds and $700k+ for 4 bedrooms. Neighbors sold recently and now the house across the street from them is for sale. There is also HOA fees here and some homes have mello roos too and doesn't seem to be deterring any sales

Has it reached the point of bidding wars yet?

[jm1982]

Originally Posted by adr3naline

The reality is this is the case for many new home buyers in LA. 20% down on an entry-level starter home is ~$120k. Normal people are not able to save $120k, and instead bite the bullet on 3-5% terms ($30k).

True . most people even if they make good money aren't able to save up that much .
I could see if they sold a house they had equity in or something .

[jm1982]

I am planning to sell a home in L.A soon so I hope it remains a sellers market and there are bidding wars .

Things seem a bit slower now but it could be the time of year .

Many people buying single family homes have kids and they don't want to have them switch schools in the middle of the school year.