What do you see happening to prices of homes in the 225K and under range? (San Jose: foreclosures, condos)

[Random707]

I'm looking to purchase a home under 225K. I'm looking at single family homes rather than condos.

I understand the market is declining. But, I have also heard that decent homes in the low price range are getting multiple offers.

I am wondering what effect the recent mortage modification plan will have on the supply of foreclosures. My reasoning is this: if it slows the supply that will create more bidding for desireable homes in the lower price range. I don't see prices increasing dramatically. But, it does make me wonder if 6 months from now it may be more difficult to get a nice inexpensive home than today.

Of course, that's one line of reasoning I've bene pondering. I am no expert and I may have it all wrong. I'd love to hear your thoughts on what you seem happening in the next year or so to the prices of decent homes that are currently in the sub-225 range.

Thanks for any expertise, thoughts, predictions, etc.

[nmnita]

Originally Posted by Random707

I'm looking to purchase a home under 225K. I'm looking at single family homes rather than condos.

I understand the market is declining. But, I have also heard that decent homes in the low price range are getting multiple offers.

I am wondering what effect the recent mortage modification plan will have on the supply of foreclosures. My reasoning is this: if it slows the supply that will create more bidding for desireable homes in the lower price range. I don't see prices increasing dramatically. But, it does make me wonder if 6 months from now it may be more difficult to get a nice inexpensive home than today.

Of course, that's one line of reasoning I've bene pondering. I am no expert and I may have it all wrong. I'd love to hear your thoughts on what you seem happening in the next year or so to the prices of decent homes that are currently in the sub-225 range.

Thanks for any expertise, thoughts, predictions, etc.

ok, you have not given a clue as to where you live or would like to live. As bad as the market is, $225 is not a fortune to be investing. I was talking to my brother today. He lives in simi Valley, has about 1100 sq ft, 3 bedrooms, 1 bath and a living room, dining area, kitchen combination, with no central air. His home was probably built in about 1955 or 60, value had decreased from about $350,000 to around $250,000.

Nita

[Ultrarunner]

There are many hundreds of homes in the East Bay under 100k.

I sold one for your 255k number 4 years ago and it was resold for 350k 6 months later.

I was at the property today to catch up with some of my old neighbors and confirmed the home was recently sold for 82k

Was able to look inside and it looked like the same home I sold, except the carpet over the hardwood was gone and the lino in the kitchen had been tiled.

[sonarrat]

Well, to give you an idea of what can happen, last August I was looking at a house in Oakland which had sold for $300,000 in the peak. Tiny house on tiny lot, but in good neighborhood. I put it under contract for $200,000, which at the time was the right price for the neighborhood. The financing fell thru because the bank dragged its feet on ratifying the contract, and the appraisal came up short at $179,000. The bank refused a counter I made at that price. I backed out and it eventually did sell at $175,000. The value fell 12.5% in three months and it probably is worth at least 20% less than that now.

[bayarea-girl]

Random707, it seems more likely that the bay area like the rest of the country will continue to see declining home values as the recession and jobless claims continue. The mortgage modification plan I think will take some time (probably 6 months) to really help people and the plan will unfortunately not help all bay area home owners. Prices still need to come down in most parts of the bay, but I doubt we will continue to see such great home prices that we have right now last for another year. I would be really surprised. It all depends if the bay area job losses increase IMHO.

[nmnita]

What am I missing here? I didn't see anyplace where the OP mentioned where in Ca he would like to buy.

Nita

[Ultrarunner]

Originally Posted by nmnita

What am I missing here? I didn't see anyplace where the OP mentioned where in Ca he would like to buy.

Nita

I'm thinking somewhere in the SF Bay Area, but not San Jose. The OP posted in the SF Forum.

[MaxineABCTeam]

If you'd consider Central Contra Costa County, there are some nice single family homes that become available in your price range, especially in Bay Point, Pittsburg, and points east. Concord and Martinez too, if you don't need to have all 3 bedrooms, 2 baths, and 2-car garage, central heat and air conditioning.

[nmnita]

Originally Posted by Ultrarunner

I'm thinking somewhere in the SF Bay Area, but not San Jose. The OP posted in the SF Forum.

duh, boy do I feel stupid??? I just saw that!

And Maxine, you are right about the size. That is the problem with so many of these threads; people ask questions without giving details, others come on and answer without knowing what the OP really wants.
Nita

[Ultrarunner]

Originally Posted by nmnita

duh, boy do I feel stupid??? I just saw that!

And Maxine, you are right about the size. That is the problem with so many of these threads; people ask questions without giving details, others come on and answer without knowing what the OP really wants.
Nita

Never the less, it's still a good question because the SF Forum covers a lot of territory.