Does OC real estate have fast/slow periods (sales, new home)

[pacific2]

Originally Posted by dwilson123

..I feel like I can get a home that would satisfy myself and my wife in the 560-580k range... I'm also concerned the market may go further insane and the idea of owning a home outpaces my ability to own one.

Personally, I wouldn't chase the market. It's obviously your call, but if I could only afford something for $560-580K and had to struggle to come up with the down payment, I would buy something for less.....much less.

One thing to consider, is the possibility that home prices might undergo a dramatic drop and stay that way for years. It's always good to be able to ride out something like that without having to worry.

Just my 2 cents.

[payutenyodagimas]

Originally Posted by pacific2

Personally, I wouldn't chase the market. It's obviously your call, but if I could only afford something for $560-580K and had to struggle to come up with the down payment, I would buy something for less.....much less.

One thing to consider, is the possibility that home prices might undergo a dramatic drop and stay that way for years. It's always good to be able to ride out something like that without having to worry.

Just my 2 cents.

if you can afford the DP and monthly amortization, you don't have to wait for that possibility coz it may also never come

[pacific2]

Originally Posted by payutenyodagimas

if you can afford the DP and monthly amortization, you don't have to wait for that possibility coz it may also never come

As you know, real estate is cyclical, and OC housing prices have undergone some very dramatic dips.

It's a matter of preferences. As I stated, it's just that I would never chase the housing; and personally believe it's best to buy less than what one can afford. To each his own.

[expatCA]

Originally Posted by pacific2

As you know, real estate is cyclical, and OC housing prices have undergone some very dramatic dips.

It's a matter of preferences. As I stated, it's just that I would never chase the housing; and personally believe it's best to buy less than what one can afford. To each his own.

Yes, because if you buy more ..................... and the market has problems.

[DenaDude]

Originally Posted by expatCA

Yes, because if you buy more ..................... and the market has problems.

So long as one continues making his/her monthly payments what happens to the market in the short term is irrelevant.

[expatCA]

Originally Posted by DenaDude

So long as one continues making his/her monthly payments what happens to the market in the short term is irrelevant.

True, if it is just short term AND the downturn does not impact their income. Buying at the limit of ones income is not wise. Many buy as an investment and a down turn really hurts them as they do not plan for such events.

[expatCA]

Originally Posted by peltonteam

Orange County real estate does have an ebb and flow. Some is seasonal but there are other factors. Supply and demand is always the bottom line driving factor.

Typically, the highest inventory and activity is during the spring/summer months. The best time to be a Seller is April, May, June when the demand is highest. But it's tough to be a Buyer during those months... multiple offers and higher prices. The end of summer can be a good time to be a buyer since so many homes went on the market over-priced in the summer, didn't sell, and now less buyers in the market. The only disadvantage to you as a Buyer in the off months is that inventory is lower. But if you can find what you're looking for, Sellers who are getting less showings are more motivated and you might not be up against other offers.

For you, as a Buyer, the thing to watch most closely is the Interest Rate. There is the price you pay for a home (sale price) and then there is the cost of owning a home (monthly payment) Consider both. Prices are expected to rise 6% in OC over the next 6 months. BXIT will have an effect of pushing them slightly lower, but if they go much lower, the banks will be paying us to take their money! Interest rate effects your monthly payment and that is the cost of buying a home. If interest rates tick up just a little, your buying power goes down... less home for more monthly.

Price range is a factor too. Over one million price range in OC is slowing now. It's an entirely different market 1 mill plus vs 1 mill or less. The $400-$700k price range could not be hotter. You'll probably have to over pay for a home and use the next 6 months equity build to get back to even.

OC Jobs market is strong, economy is strong, builders are behind, and the recession has created a pent up demand for homes. Don't wait to buy real estate... buy real estate and wait.

Low interest rates are the key to buying now. If they ever go up buyers will have a tougher time.

[CaliRestoration]

In 10 years, the people who thought today's prices were insane, will look fondly upon them and wish for their return.

[expatCA]

Originally Posted by CaliRestoration

In 10 years, the people who thought today's prices were insane, will look fondly upon them and wish for their return.

That will be true everywhere, except maybe Detroit.

[CaliRestoration]

Originally Posted by expatCA

That will be true everywhere, except maybe Detroit.

Well, according to Perma Bear, California will be Detroit part 2, so...