Median Homes for the Bay Under $300K (Berkeley, Richmond: house, to buy)

[FelixTheCat]

I have friends that make 500k a year and they aren't going to buy because they don't want to waste money on a house that will lose value. That 20% down can go towards a real investment that will make money.

As for me, I won't be buying again till 2012 or 2013. The houses that I would want to live in are at least 400k and I need my cash for my business. I can't count on credit or if I will be profitable a year from now, so buying a house now isn't even an option. Also, I want to buy a house I really want, so I will stay put for 10+ years and be able to pay it down. At this point buying would mean living somewhere worse than where I would rent. And we have the lowest mortgage rates ever, so when they go up to 8% again, prices will go down.

[City Boy]

Originally Posted by ImRandy

If you're paying and paying on time why are they foreclosing?

Because I'm going to start missing my payments. I will accept the fact I took a ARM loan, it was the only way I could get into the house. My plan was to refinance in a couple of years not stay in an ARM and let this happen. The only way they will help me is when I miss payments.

[Ultrarunner]

Originally Posted by FelixTheCat

I have friends that make 500k a year and they aren't going to buy because they don't want to waste money on a house that will lose value. That 20% down can go towards a real investment that will make money.

As for me, I won't be buying again till 2012 or 2013. The houses that I would want to live in are at least 400k and I need my cash for my business. I can't count on credit or if I will be profitable a year from now, so buying a house now isn't even an option. Also, I want to buy a house I really want, so I will stay put for 10+ years and be able to pay it down. At this point buying would mean living somewhere worse than where I would rent. And we have the lowest mortgage rates ever, so when they go up to 8% again, prices will go down.

Not too long ago in history the common man had no chance to own land...

The ability to own land is one of the driving forces that created the US and the westward expansion.

I'm not saying home ownership is for everyone... we have had so many programs to help first time home buyers, people of modest means, teachers, mandatory lending in areas that had been red-lined... I find it interesting that the pendulum has swung the other way where there is a whole new group of people choosing not to own ever.

Interesting times in which we live...

[jzt83]

Perhaps we should bring back the 5 year mortgage again, and prices will plummet across the board.

[Ultrarunner]

Originally Posted by jzt83

Perhaps we should bring back the 5 year mortgage again, and prices will plummet across the board.

I don't know about 5 year mortgages...

The seller of my home was the original owner and the builder financed it for 10 years at 2.75% with $10 US Gold as the down payment. She gave me all of the original documents and I found it interesting.

The home was built in 1922.

My understanding is the 30 year mortgage came into vogue after WWII to compete with the VA loans for GI's

[artemis78]

Hey, you just solved a mystery for me! Our house has a 1919 sale recorded as being for $10 US Gold but doesn't note the loan---I was always puzzled by why they would have sold if for so little (even back then houses cost much more than that to build!) But I bet it was a loan, then, and they just recorded the down payment. Huh.

But yes, the mortgage as we know it was a post-WWII invention during the suburban housing boom (and products like adjustable rate loans came decades after that).

[Ultrarunner]

Might your builder be McGregor? He was also known as 1 nail McGregor because he used more nails than others of the era.

He was a local builder that pioneered building small subdivisions of several city blocks at a time... quite innovative for the period.

His signature is the California Craftsman Bungalow on a raised foundation with covered porch, stucco exterior, matchstick hardwood, optional bay style window and 2 smaller windows with one on each side of the fireplace.

I forgot to mention the built in dining room hutch and french doors separating the dining room from the living room... although many have been removed making it one large room.

[artemis78]

It's certainly conceivable---sounds a lot like our house, and we did once have the french doors and a dining room hutch (both removed, bleh!) I didn't know he'd built much in Oakland (I know Albany/Berkeley is crawling with them) but would be interesting if so!

Our neighbors actually have the blueprints of their house (same builder), though---they keep promising to copy them for me and I imagine I might be able to figure it out from that, so one of these days I'll bug them about it again.

Thanks for the info!

[Ultrarunner]

Yes... he was very prolific... lots in Maxwell Park area of Oakland too.

I've actually bought a couple of his homes over the years... the one that was totally unmolested sold right away... lots of my neighbors with the same floor plan have homes that have had several botched remodels through the years.

To be fair... there is a home up the street that was totally redone and is stunning... kind of old charm with today's modern elegance... nice job, expensive and very unusual for the area... the owner was an aspiring architect.

I'm not a purist by any means... It's just that I've seen some so called upgrading where the owners shot themselves in the foot... they would have done much better without the particle board painted cabinets and Formica, etc.

[sonarrat]

Oh, by the way, I spotted the first house under $300K in my neighborhood today, on the hilariously misnamed Hillsborough Blvd. Everything is sitting for an eternity. One house on Elkins actually has its realtor sign broken and flapping uselessly.