1st time homebuyer - Not looking so good right now (Westminster: foreclosures, rental)

[incognitoe]

The housing market right now is just crazy. I've seen listing that are just 2-3 days old that now have "SOLD" right on the sign. And some of these properties are garbage.

I looked at one for 550K. It had 1800sqft but the 600sqft was an addition. All 3 bedrooms were tiny, and I mean tiny. The bathroom connected to the master bedroom was a joke. It was no bigger than a closet. LOL (Stand up shower, a sink, and a toilet) all squeezed into a room the size of a closet.

House needed a new roof, new carpets, new interior paint...

My budget is around 500k. Looking for a move-in ready house. Since I am putting half for down payment.
I don't qualify for a bigger loan at the moment.

Area I am interesting in is 98241, 92845 and Cypress. Los Alamitos is nice, but over budget. Cypress or borderline.

Can't believe just 3 or so years ago, I could have purchased a property for $400k.

Now, things are just crazy. It looks like I have to wait for another bubble. I dumped half of my savings on a rental unit with my Aunt. So, at least I have that I guess.

[ihatedcu]

There are houses in Buena park next to cypress within your budget. You get cypress school district on Buena park budget.

[Electrician4you]

That's what you get in most of OC. A crap shack built in the 50-60-70s for HALF A MILLION DOLLARS or more that needs a complete renovation for another 60-80k. For a full remodel or new construction expect to pay 650-850k.
This is why there will be a correction again. These prices are unrealistic. There aren't enough people making the required income to support these prices.

[ocGuy714]

Originally Posted by Electrician4you

That's what you get in most of OC. A crap shack built in the 50-60-70s for HALF A MILLION DOLLARS or more that needs a complete renovation for another 60-80k. For a full remodel or new construction expect to pay 650-850k.
This is why there will be a correction again. These prices are unrealistic. There aren't enough people making the required income to support these prices.

Absolutely on point. When house prices rise and incomes do not, there's a bubble forming. Although this bubble is different from bubble 1.0, whereas it's not necessarily bad loans but investors, flippers, foreign money, sprinkled with the occasional "buy now or be priced out forever" people raising the prices.

This is the new "American dream" in California... It's a game, or like stocks. People play and invest with it and no longer live in it.

You should wait it out. I'm either waiting it out or moving out of state.

[LuvSouthOC]

Originally Posted by Electrician4you

That's what you get in most of OC. A crap shack built in the 50-60-70s for HALF A MILLION DOLLARS or more that needs a complete renovation for another 60-80k. For a full remodel or new construction expect to pay 650-850k.
This is why there will be a correction again. These prices are unrealistic. There aren't enough people making the required income to support these prices.

I could be mistaken but I cannot think of anywhere where they sell new SFHomes in OC in that price range. I heard there were some new homes in Stanton (torn down, rebuilt) in that price range.

[payutenyodagimas]

Originally Posted by incognitoe

The housing market right now is just crazy. I've seen listing that are just 2-3 days old that now have "SOLD" right on the sign. And some of these properties are garbage.

I looked at one for 550K. It had 1800sqft but the 600sqft was an addition. All 3 bedrooms were tiny, and I mean tiny. The bathroom connected to the master bedroom was a joke. It was no bigger than a closet. LOL (Stand up shower, a sink, and a toilet) all squeezed into a room the size of a closet.

House needed a new roof, new carpets, new interior paint...

My budget is around 500k. Looking for a move-in ready house. Since I am putting half for down payment.
I don't qualify for a bigger loan at the moment.

Area I am interesting in is 98241, 92845 and Cypress. Los Alamitos is nice, but over budget. Cypress or borderline.

Can't believe just 3 or so years ago, I could have purchased a property for $400k.

Now, things are just crazy. It looks like I have to wait for another bubble. I dumped half of my savings on a rental unit with my Aunt. So, at least I have that I guess.

just bought a condo last Dec. offered the asking price right after they posted it in Zillow. maybe they still wanted to wait for more higher offers but my agent said we are buying at the price they listed what more do they want? we opened an escrow immediately

could have bought during the downturn but we have no regrets. we poured all the money we could save into our 401k and it appreciated more that we could have bought the condo in cash if it is not a retirement account.

a house could only appreciate so much compared to stocks and im happy that we have a sizeable retirement account in relation to our age right now.

for the condo, im not even thinking if the 20% dp will return 50% after 10 years

[russlancea]

Wait it out, they said. No one can afford these homes. The bubble will burst...

My husband and I waited, thinking the market would be flooded with foreclosures after the first bubble. Nope, didn't happen.
The bubble did not burst but got bigger and bigger. Is it really ever going to stop? I hope so, but I have a feeling it's not going to happen.

I just came back from Northern California--Redwood City. The older homes on small lots start in the $800k. Will prices be that way down here?

[Electrician4you]

Originally Posted by LuvSouthOC

I could be mistaken but I cannot think of anywhere where they sell new SFHomes in OC in that price range. I heard there were some new homes in Stanton (torn down, rebuilt) in that price range.

Home Builder in Southern California | Christopher Homes Westminster location Selling in the high 700s low 800s . You can still pick up houses in the 500k range in Corina/Norco/Chino/Eastvale

[ihatedcu]

If you got 20% down and you can afford the monthly mortgage, buy now. Does not matter if we are in a bubble now. These 600s houses will never get to 100s.

The future highs will be greater than the previous highs and the future lows will still be greater than the previous lows.

[motobecaneti]

Why are you guys calling it a bubble? It's inflation...asset inflation. The prices will never go back down. The US government, Chinese government, the EU are all printing money and pushing the prices up. It's not a bubble, it's inflation.