Feeling like 2006... (Irvine, Orange, Stanford: short sale, 2015, condos)

[Urban Planner]

No.

I build tract housing (cookie cutter) and am making a killing to be honest. The lack of new housing to meet demand is what will push this market forward over the next few years. I don't see anything but up.

I suffered during the great recession, but this is a completely different animal.

[Lallo]

Some very valid points. In my price range, 650k and under, there are a lot of buyers. The main reason that I'm considering pulling the trigger is that this next home will be our families home for a very long time. My oldest is starting school this year and I don't want to move her around once she starts making friends.

[expatCA]

Originally Posted by Lallo

Some very valid points. In my price range, 650k and under, there are a lot of buyers. The main reason that I'm considering pulling the trigger is that this next home will be our families home for a very long time. My oldest is starting school this year and I don't want to move her around once she starts making friends.

This.

Buying a "home" is wise when you have a family. Buying a house because you think you will make money is not so bright unless you really understand the market.

Once a home is bought the value, taxes etc is pretty much locked in and in the long term you will build equity that may have value down the road. Buying to make money is vastly different as real estate commissions and other fees eat up a lot of equity. Stretching to the limit is never wise unless it is a home you are buying and you have a secure job/income. While the market is unlikely to bust as it did last time, it is likely to flatten in a few years and then bounce up and down a bit.

[expatCA]

Originally Posted by Urban Planner

No.

I build tract housing (cookie cutter) and am making a killing to be honest. The lack of new housing to meet demand is what will push this market forward over the next few years. I don't see anything but up.

I suffered during the great recession, but this is a completely different animal.

Many can't accept this. They want a price drop so they can buy.

[payutenyodagimas]

was OC really affected during the great recession? there was a dip in home prices but was not as severe as those in Riverside, San Bernardino

[CaliRestoration]

Originally Posted by payutenyodagimas

was OC really affected during the great recession? there was a dip in home prices but was not as severe as those in Riverside, San Bernardino

Certain parts of OC were hit with 40% dips, so yes there was a big dip during the recession. But remember it was one of the worst financial crisis ever faced by the country and over 500+ banks failed from 2008-2012 including WaMu, Lehman, etc.

We will likely never see such a dip in OC in our lifetimes, as I don't see banks ever doing no-income-verification 100% loans again, unless they're stupid (which is certainly a possibility).

[SportyandMisty]

Originally Posted by Lallo

Anyone else fee like it's 2006 all over again. Buyers seem to be bidding up houses like crazy today. Some houses don't even make it to the first open house before it goes into pending. I'm thinking of waiting out this madness. What's everyone's take on this? I am currently looking and have the 20% down and preapproved for 650k but what I'm seeing out there feels like this can't continue for too much longer. One of my coworkers is closing this Friday on a 690k house with only 5% down. WTF!

It is an asset transfer: people are taking one kind of asset (stocks) and exchanging them for another kind of asset (housing).

Currently, the stock market is at essentially an all-time high, so people have wealth to transfer into housing.

[Finper]

Originally Posted by payutenyodagimas

was OC really affected during the great recession? there was a dip in home prices but was not as severe as those in Riverside, San Bernardino

I have a condo in Orange. In 3 days it went from 310,000 to 130,000. The HOA was in dire straits because nobody could pay the dues. My neighbors moved out in the middle of the night and left for Indiana. There were multiple short sales and walk aways. It was VERY bad.

[RosieSD]

Originally Posted by Finper

I have a condo in Orange. In 3 days it went from 310,000 to 130,000. The HOA was in dire straits because nobody could pay the dues. My neighbors moved out in the middle of the night and left for Indiana. There were multiple short sales and walk aways. It was VERY bad.

Just out of curiousity, how is your condo value doing today?

[payutenyodagimas]

Originally Posted by RosieSD

Just out of curiousity, how is your condo value doing today?

that should be 500k+ now