Thoughts on the current real estate market

SYBIZ

SYBIZ

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What's everyone's thoughts on the current real estate market? I'm considering buying a new house here in San Diego and I realize that I'm buying high but I'm also selling high. How are we all feeling about the economy and the future direction of the housing market. Curious to get the thoughts of all you real estate ballers. 

 
We are not in your market, but it is crazy up here as well. We sold our house and are waiting for our new house to be completed. We listed our house and it sold before it even hit the market, got an all cash offer 25k more than asking. The house we are buying is under construction and the builder accepted our full price offer, which was fortunate because it already appraised for 35k more than our accepted offer.

In my opinion it's proportional, sell high buy high, or sell low buy low. Same result in the end.

Disclaimer, I am in no way an expert. 

 
My best advice is to get the house you want and buy it.    I sold high and bought high in 2005 and lived underwater for several years but I didn't care because I was in the house I wanted and that was where I wanted to be.   With time, everything eventually came back around and I got to live where I wanted.

 
Sell, wait 2 years and rent...invest the money, then buy?

I don't know. :dunno:

All I know is our home has doubled in price in 10 years since we bought. Insane, but I'll take it...just hope it keeps on going that way and hopefully it's paid off by the time I retire.

 
I have helped a lot of board members buy and sell over the years. Feel free to call me anytime with questions, or you can go through my website BrandonLong.com. 

To help with the quick answer. If you want to buy the market always has a cycle so go ahead and buy just realize you may need to stay there for a while. More importantly if you are a financed buyer I suggest buying and taking advantage of low rates. In my opinion its ok to purchase with todays higher price at a low rate as long as you have a safe/fixed low rate loan. If you are a cash buyer then my suggestion could be to wait it out. If you are buying down in value then its probably ok either way. 

 
It's all in the numbers. If you have enough equity to upgrade and keep the length of loan close to where you are now or shorten it and are young enough so your not paying the last 5 years of a mortgage with Social Security..  Go for it.

But if its the opposite, I would be really thinking hard on why I have to upgrade now. 

 
Its all relative, the only problem I see in upgrading is the property tax hit.  Especially if you have been in your current house for a long time.

 
SLIM said:
Its all relative, the only problem I see in upgrading is the property tax hit.  Especially if you have been in your current house for a long time.
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Good point.

In my case the property tax bill will go up 40% even though the value is only 50k difference. We lived in the house we sold for 13 years and property tax increase limits kept the tax bill lower. Will be paying full boat on the new home at least for a few years.

 
I was going to say the same as Slim /\

Sell high and buy high, rates are low but the downside is your prop taxes are going to be high(er).........forever

I am looking to sell and sit on the money (invest for now) and buy again later if the right deal pops up. If it doesn't, I'll retire a few years early 🙂

 
Yea, my property taxes will definitely increase. On another note, I'm also hearing nightmare stories regarding homeowners insurance when you're in a firezone which the house I'm looking at is in. 

 
BRANDON LONG said:
I have helped a lot of board members buy and sell over the years. Feel free to call me anytime with questions, or you can go through my website BrandonLong.com. 

To help with the quick answer. If you want to buy the market always has a cycle so go ahead and buy just realize you may need to stay there for a while. More importantly if you are a financed buyer I suggest buying and taking advantage of low rates. In my opinion its ok to purchase with todays higher price at a low rate as long as you have a safe/fixed low rate loan. If you are a cash buyer then my suggestion could be to wait it out. If you are buying down in value then its probably ok either way. 
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Thanks Brandon, I've seen you on the board for a long time and was hoping you'd chime in. You may hear from me. Thanks!

 
dbart said:
Sell, wait 2 years and rent...invest the money, then buy?

I don't know. :dunno:

All I know is our home has doubled in price in 10 years since we bought. Insane, but I'll take it...just hope it keeps on going that way and hopefully it's paid off by the time I retire.
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my buddy here in okla, had a real estate agent come out to view his house. he said if they can get 600k i'm selling, i only owe 200k. they toured it and sat down and said we think we should start at 949k, he almost passed out, turned white, got the sweats, and when he got himself together he said well have you listed it yet, lets get it sold!

he will rent until it crashes then pay cash.

 
We just did this at the beginning of the year...pretty much a lateral move price wise. We sold our house(which we bought in 09 at the low) for $100k over asking in the 3 days we showed it(92 couples came through) all contingencies removed and 30 day free rent back. We had over 35 offers all above asking. 
we moved on 2.5 acres in a great neighborhood and haven’t regretted our decision. 

Our payoff is just slightly more than the previous house but feel this place in the long run will be worth much more. 

 
I just bought a house cash out of state, was concerned about holding on to my house here in ca for a while till we move (don't want to buy high sell low) but with the lack of inventory, increasing regulations and hyper inflation on building products I'm not too worried. If rates skyrocket ill just rent it out and sell on the next go around... 

 
sybiz said:
Yea, my property taxes will definitely increase. On another note, I'm also hearing nightmare stories regarding homeowners insurance when you're in a firezone which the house I'm looking at is in. 
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I just purchased a home in Alpine. Once it came to finding homeowners insurance to finalize the loan, everything stopped! We spent a few days trying to find a company that would cover Alpine because of the fire zone. We ended up getting coverage under the California fair plan act. You end up with 2 policies instead of 1 but it can be done.

 
I just accepted an offer on my San Bernardino house and am in Escrow (Not Esco). I'm renting a Crapty little apartment in a nice neighborhood and figure I'll be there for 5 years or so before buying back in to the market in a nicer neighborhood with a smaller house. My hope is for super high interest rates to combat inflation which will push house prices down. A bunch of foreclosures at the same time will just sweeten the pot. Otherwise, I don't see prices coming down any time soon. Too many buyers. 

  On your fire insurance, State Farm was great to work with and Speedy here with AAA helped me get AAA fire insurance when a regular agent rejected my business. 

 
THD said:
Good point.

In my case the property tax bill will go up 40% even though the value is only 50k difference. We lived in the house we sold for 13 years and property tax increase limits kept the tax bill lower. Will be paying full boat on the new home at least for a few years.
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If the market crashes, and your property lists at a lower value then you paid for it, you can get your property re-assess for a property tax adjustment. 

 
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