Housing Market Declining Rapidly (Los Angeles, Oxnard: houses, gated community, fence) - California (CA) - Page 2 - City-Data Forum

MoMark · 07-07-2006, 10:07 PM

The problem is that when one buys a home with an interest only ARM, etc. type of loan, and they have no money down on the home, that buyer is vulnerable not only to future interest rate hikes such as are happening now and causing billions of dollars in mortgages to reset to higher rates, but also to the falling market which can leave them owing more on their mortgages than their house's market value as prices fall. And when the value of one's home falls beneath what is owed on it, refinancing is no longer an option as the bank will not refinance an underwater owner. They're stuck. These buyers are also vulnerable to any comparables sold near them that sell below what they owe on a comparable house. Once comparables start selling for less then what these ARM buyers owe, they are stuck and cannot refinance. They either pay the ever-rising mortgage bill at higher rates that keep getting reset upward, or they walk away from the house and give the keys back to the lender....which is happening now with the foreclosures hitting record rates across the nation. The worst home to buy now or own is a condo... Think of what happens when your neighbors bail and the development empties as they foreclose... you're left with empty condos all around you pulling your condo value downward as your share of HOA fees skyrockets... Heaven! Anyone who has an ARM or interest only loan at this time who actually has equity should refinance to a 15 or 30 year fixed rate loan yesterday. Anyone who pulls equity out in the form of a second mortgage is nuts, or, intends to stiff the bank going forward anyway.

Sandi Beach · 07-15-2006, 09:37 AM

Quote:

Originally Posted by RedNC

You stay in your house until the prices rise again. If you bought a house in CA from 90 to 96 your home would have lost as much as 21%, but from 97 on your house would have appreciated enough to overcome the loss.

So if we stay in our homes, does it really truly matter what they are worth? That is, they are our homes and their worth is tremendous because of that fact alone. They are our shelters against the elements, our roots, our centeredness, the place where we live and love and make our homes for our families.

True, it is better to have a home with lots of beauty and equity, in good condition, in a fantastic neighborhood - a home that we can sell for a lot of money if need be. But if we are not selling, then the real worth of the home is that it is our home, not the dollar figure it could fetch on the market.

shannon94 · 07-18-2006, 04:42 PM

Quote:

Originally Posted by Sandi Beach

So if we stay in our homes, does it really truly matter what they are worth? That is, they are our homes and their worth is tremendous because of that fact alone. They are our shelters against the elements, our roots, our centeredness, the place where we live and love and make our homes for our families.

True, it is better to have a home with lots of beauty and equity, in good condition, in a fantastic neighborhood - a home that we can sell for a lot of money if need be. But if we are not selling, then the real worth of the home is that it is our home, not the dollar figure it could fetch on the market.

I totally agree with what you said.....however ...so many people bought homes they really couldn't afford. When those arm's come due...alot of people are not going to be able to afford the increase...they have no choice but to leave/ foreclose or sell. I could care less what my house is worth....I didn't buy more than I could afford and I'm staying put!

The OC Coastal Group · 07-20-2006, 05:07 PM

Currently, there are three times as many homes on the market and half as many sales vs. the same period last year. [moderator CUT] The fact is that the housing prices have reached the point of turning away investment buyers. In essence, everyone who buys a home is an investment buyer. If you look at the home price, the amount of money you need to update the home for resale, in many cases, it doesn't pencil out. If you're looking for an income property, the rents don't warrant the asking price of the home. In today's market, if the price is too high, the homes won't even get buyers to look at it. Seller's need to be ready to negotiate down to fair market value (the amount a buyer's willing to pay) if they want to sell their home.

go to [url]removed[/url] for regular market updates

shannon94 · 07-21-2006, 10:03 AM

Quote:

Originally Posted by The OC Coastal Group

Currently, there are three times as many homes on the market and half as many sales vs. the same period last year. [moderator CUT] The fact is that the housing prices have reached the point of turning away investment buyers. In essence, everyone who buys a home is an investment buyer. If you look at the home price, the amount of money you need to update the home for resale, in many cases, it doesn't pencil out. If you're looking for an income property, the rents don't warrant the asking price of the home. In today's market, if the price is too high, the homes won't even get buyers to look at it. Seller's need to be ready to negotiate down to fair market value (the amount a buyer's willing to pay) if they want to sell their home.

go to removed for regular market updates

Investors aren't buying because prices are starting to fall and will continue.

fairweathergolfer · 10-23-2006, 07:00 AM

Is it just me or is that spammer dude really annoying? He's in all the housing threads with the same mindless spam. Guess it is time to email the mods. Ho Hum.

fairweathergolfer · 10-23-2006, 07:33 AM

Yeah. Gone. Thanks mods!

socal06 · 10-23-2006, 11:12 AM

Yes, real estate prices may be going down, but not drastically. My house is valued around $900k if it loses -2.7 percent it might be around 800 something. big deal. yes home prices will go down but you will never see my house below $500k just because -- its located in California.

shannon94 · 10-23-2006, 02:40 PM

Quote:

Originally Posted by socal06

Yes, real estate prices may be going down, but not drastically. My house is valued around $900k if it loses -2.7 percent it might be around 800 something. big deal. yes home prices will go down but you will never see my house below $500k just because -- its located in California.

They've already gone down more than 2.7!! Cali is not immune . What's your zip code?

OCCASparky · 10-23-2006, 02:50 PM

Quote:

Originally Posted by shannon94

They've already gone down more than 2.7!! Cali is not immune . What's your zip code?

92708. And while my house has been on the market for six weeks, it's still getting looks from people because it is priced BELOW comps for the area yet high enough I'll still be able to pay CASH for my next house out of state.