Buying a house (Santa Clarita, Pasadena, Altadena: for sale, 2015, apartment)

[DawnW]

We moved out of CA 11 years ago.

Now we are looking at moving back. The last two houses we sold (2005 and 2001 in LA) were the years that there were multiple offers, bidding wars, almost no house sold for asking price, but would sell for more. In 2001 we sold our house in 24 hours. In 2005 we sold in 7 days.

What can we expect buying now? Is it is the same or have things slowed down?

Also, does it matter what time of year you buy? I know here (currently in NC) if you sell in the Spring or Summer, you get the best offers, if you sell Fall or Winter, not many are looking and it is harder to sell.

It feels so odd asking these questions, since we are moving back "home" for us, but we have been gone a long time!

Thanks,

Dawn

[Lovehound]

Not crazy like then, but property taxes are crazy insane off the wall blow a hole in your budget and suck it in like a black hole.

I could rent an economy apartment just on my property taxes alone.

[ryanms3030]

I bought a condo in Santa Clarita last year and there were multiple offers and a bidding war. I looked at a bunch of condos and houses up there and everything was going above asking. Not sure about now with new rates and political climate

[JustMike77]

Hi Dawn. It's not as crazy as 2005, but it's still a seller's market. Prices have rebounded to above the previous 2007 highs thanks to low interest rates and low inventory. You'll be surprised by the prices now. Other than around the holidays, I don't think there's a better or worse time to buy. Good luck and welcome home.

[anrev]

It's always a sellers market in Socal. The only time its NOT a sellers market is when it's a CASH buyers market.

If you're buying with a mortgage...well good luck to you!

[jm1982]

If you haven't looked at prices recently they will be a lot higher than back then .

[DawnW]

Thanks all. We do know prices have increased and I regret ever selling our Altadena home (first home purchase) that we got for $142K back in 1998. But, I can't change the past.

Our income will be much better than it was back then, so that is a plus. We won't buy until we have secured both jobs. And we will have a sizable chuck (20% at least but hoping for 30%) to put down. So at least there won't be any PMI.

[Lovehound]

Originally Posted by ryanms3030

I bought a condo in Santa Clarita last year and there were multiple offers and a bidding war. I looked at a bunch of condos and houses up there and everything was going above asking. Not sure about now with new rates and political climate

I think you should depend on ryanms's advice more than mine as far as the present state of the market. Also you can use Zillow to gain a statistical opinion on the state of the market in any zip code. I don't trust their individual listings but the aggregates are better just because mistakes and flukes tend to average out.

Originally Posted by DawnW

Thanks all. We do know prices have increased and I regret ever selling our Altadena home (first home purchase) that we got for $142K back in 1998. But, I can't change the past.

OMG, Altadena at $142K? My advice is to get a prescription filled for either a sedative or anti-anxiety drugs (almost the same) before you even look at the current market.

By the way, the L.A. County tax assessor's property tax calculator worked almost down to the penny for me! I couldn't believe the government did such a good job when my tax bill and supplemental tax bill for my first year came within a few dollars of where the County said it would be.

But heed what I said. Our property taxes are just plain totally crazy!!! I predict your limiting factors will be (1) finding a house you can afford in an area you are willing to live in, and (2) being able to afford the taxes.

The real California is almost an exact opposite of the song Hotel California: "You can check out any time you like, But you can never leave!." In reality you can check out any time you like, but you can probably never return! -- You had better be prepared for that.

[DawnW]

Originally Posted by Lovehound

I think you should depend on ryanms's advice more than mine as far as the present state of the market. Also you can use Zillow to gain a statistical opinion on the state of the market in any zip code. I don't trust their individual listings but the aggregates are better just because mistakes and flukes tend to average out.

OMG, Altadena at $142K? My advice is to get a prescription filled for either a sedative or anti-anxiety drugs (almost the same) before you even look at the current market.

By the way, the L.A. County tax assessor's property tax calculator worked almost down to the penny for me! I couldn't believe the government did such a good job when my tax bill and supplemental tax bill for my first year came within a few dollars of where the County said it would be.

But heed what I said. Our property taxes are just plain totally crazy!!! I predict your limiting factors will be (1) finding a house you can afford in an area you are willing to live in, and (2) being able to afford the taxes.

The real California is almost an exact opposite of the song Hotel California: "You can check out any time you like, But you can never leave!." In reality you can check out any time you like, but you can probably never return! -- You had better be prepared for that.

You did read my post about having already looked at homes online? I am well aware that we will have to pay more than we did in the past.

The 2nd house we had in Pasadena we bought for $250K in 2000 and sold in 2005 for $600K. It is now valued at around $750K on Zillow but isn't for sale.

Our $142K home is now valued around $700K as well.

Are the taxes now more than the 1.25% we had to pay in the past?

[Lovehound]

Originally Posted by DawnW

Are the taxes now more than the 1.25% we had to pay in the past?

County taxes may be around that figure, but you have neglected all the supplemental "add on" taxes such as consolidated sewer, flood control, library, fire department, and a whole bunch with such complicated abbreviations I don't even know what they are, plus a whole bunch more that are penny ante.

My best guess is that your annual property taxes will be about 1.6% of your purchase price. (That's what I'm paying.)

Then let's not forget the infamous "supplemental" tax bill. Your escrow will cover your tax payment from July 1, 2016 to close of escrow, but at the OLD tax rate the seller paid. Your house will be reassessed at a new tax rate based upon your purchase price, and you must pay that too. This additional payment is your supplemental property tax bill, so you get a double whammy the first year.

You should understand that the 2016 tax year began July 1, 2015 and ended June 30, 2016, what is called a fiscal year. All we Angelinos have already racked up almost 3/4 of our 2017 taxes due for the period July 1, 2016 and ending June 30, 2017. We will be billed for it later this year. I don't know why they do that. All I know is that's what they do.

The explanation "it's a fiscal year!" doesn't cut it with me. Nor do I understand why they want us to pay our taxes AFTER the tax year has ended. If I were the County I'd want my money as soon as possible. I'd send out a tax bill at the end of every 6 months and give taxpayers 30 days to pay for the preceding 6 months. But a bam, but a boom, you're done! But no, that is too simple for the government.