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Old 04-08-2009, 01:29 AM
 
Location: Downtown San Diego, CA 92101
292 posts, read 1,104,141 times
Reputation: 118

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I've been renting the last 2.5 years and just started perusing the real estate for sale. In the areas of Mission Viejo, Laguna Hills, Laguna Niguel, and Aliso Viejo that I've been looking at, I have actually seen several 2BR/2Bath 750-1000sq ft. Condos ranging in price from $145,000 to $190,000. Most of them are "short-sales" or "bank owned properties." When I moved to California from New Jersey in March of 2007, the 2/2 condos I was looking at there with similar specs were selling for $190K-$235K, so this is quite shocking to me right now. Is it going to continue to go down in price? As a current renter paying around $1550 total for a 2 BR apartment, I'm looking at a potential mortgage of $175Kish, I could probably BUY a place for less than what I pay each month in rent?! Is this for real? I am a rookie so please advise if I'm living in fantasy land here or if these prices are legit that real estate agents have been showing me on the MLS. Also, what are the 'catches' if any in doing these short sales or bank owned properties?
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Old 04-08-2009, 01:59 AM
 
11,726 posts, read 24,769,597 times
Reputation: 7136
Quote:
Originally Posted by dakicka View Post
I've been renting the last 2.5 years and just started perusing the real estate for sale. In the areas of Mission Viejo, Laguna Hills, Laguna Niguel, and Aliso Viejo that I've been looking at, I have actually seen several 2BR/2Bath 750-1000sq ft. Condos ranging in price from $145,000 to $190,000. Most of them are "short-sales" or "bank owned properties." When I moved to California from New Jersey in March of 2007, the 2/2 condos I was looking at there with similar specs were selling for $190K-$235K, so this is quite shocking to me right now. Is it going to continue to go down in price? As a current renter paying around $1550 total for a 2 BR apartment, I'm looking at a potential mortgage of $175Kish, I could probably BUY a place for less than what I pay each month in rent?! Is this for real? I am a rookie so please advise if I'm living in fantasy land here or if these prices are legit that real estate agents have been showing me on the MLS. Also, what are the 'catches' if any in doing these short sales or bank owned properties?
How low prices will go and when it'll bottom out is anybody's guess. The catch on foreclosures and short sales is that the banks can drag their feet and take forever to give you a final yes or no answer so you have to be patient. You'll definitely want to work with an agent who's worked lots of distressed sales. The other catch in today's environment is that good credit, provable income, and a sizable down payment will be required. If you're good on all those fronts and you plan on staying a while, you could do well buying. Also, with condos you need to check out the association carefully. If there's lots of empty units in your complex, they're not paying dues and the HOA will come to you to make up any shortfall. If the HOA goes belly up, you've got a big problem.
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Old 04-08-2009, 03:10 PM
 
5 posts, read 8,174 times
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Default Price will drop to 2002 level

Christopher Thornberg of Beacon (former USC economist) predics home prices will bottom in 2010. He said he will buy a house in Carlsbad then.

You will be looking at 300k or so for the starter homes. It is almost there now. Interest rate will stay low for a while. It is forecasted to go even lower by year end. I think winter 2010 will be the best time to get into a house in OC. The highest unemployment data for OC will probably occur in 2010 also.
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Old 04-08-2009, 03:24 PM
 
Location: Las Flores, Orange County, CA
26,362 posts, read 55,963,918 times
Reputation: 16422
We may have a ways to go.

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Old 04-08-2009, 03:28 PM
 
5 posts, read 11,622 times
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what a great graph, charles. thank you! this shows exactly what i've been reading and hearing which is why i'm skeptical the bottom is now or soon.
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Old 04-10-2009, 07:21 PM
 
Location: Downtown San Diego, CA 92101
292 posts, read 1,104,141 times
Reputation: 118
Quote:
Originally Posted by Charles View Post
We may have a ways to go.
I hope this is the case (being a potential new home buyer, and eager invester!)
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Old 04-10-2009, 07:23 PM
 
11,726 posts, read 24,769,597 times
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Is that graph above for the US, California, or OC?
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Old 04-10-2009, 07:46 PM
 
Location: Las Flores, Orange County, CA
26,362 posts, read 55,963,918 times
Reputation: 16422
Quote:
Originally Posted by EscapeCalifornia View Post
Is that graph above for the US, California, or OC?

I don't know; I stole it from some other dude's post.
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Old 04-14-2009, 12:48 PM
 
573 posts, read 1,174,274 times
Reputation: 303
Quote:
Originally Posted by EscapeCalifornia View Post
Is that graph above for the US, California, or OC?

Quote:
Originally Posted by Charles View Post
I don't know; I stole it from some other dude's post.

It was released by the International Monetary Fund as part of their 10/2007 report titled Financial Market Turbulence: Causes, Consequences, and Policies. It had a global focus, but that chart was included in a section on Mature Markets and was focused on the US as a whole.

Lots of interesting data in the report, if you care to wade through all 196 pages.
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Old 04-18-2009, 01:49 AM
 
9 posts, read 24,449 times
Reputation: 12
We've put in an offer on a condo is Mission Viejo. It's a short sale and the agent told us a week ago that the lender has selected our offer but we don't have anything in writing yet. Is this common to tell a buyer they're offer is selected and then have to wait?? Do agents ever lie just to try to get the potential buyer to hang in there?

Sailfish
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