Real Estate Agent · Northern California · Member since 2018 · 68 posts · 9 votes
Hello, I am wondering what sources investors would go to in order to track the housing market in a specific county. Is the market for the Whole US different than a specific county and even an area in that county? Is it worth waiting a bit for the cycle to turn to a more favorable point for a better buy? What would indicate a good time to buy? This is the weak point in my understanding of investing so I would appreciate any and all input from you guys. Thank You, Nigel
If the deal makes sense and works today, then you should buy today. Waiting for tomorrow just gives others an opportunity to take deals that can earn you money now. A bird in the hand is worth two in the bush.
If the deal makes sense and works today, then you should buy today. Waiting for tomorrow just gives others an opportunity to take deals that can earn you money now. A bird in the hand is worth two in the bush.
thank you for your reply and it makes sense. However, Ive heard from different people that the housing bubble is getting close to the top, if not at the top. With Bay Area prices here in California getting pretty high I feel like getting in debt like 300,000-400,000 might not be such a good idea. I don't want to be underwater when the cycle downturns. I'm thinking It would be best to focus on fixer upper rentals to get in at a lower price. What would you do in my area?
If I could find a home in the bay area for 300 - 400k I would buy it in a second. Most homes are still touching 800k in most areas.
The bay area is the most expensive housing market in the country. But three cities in the bay area are leading in the down trend for real estate values.
Also its getting harder to flip homes which is also a sign of a cooling market. Median prices still went up even though inventory increased so its still a mixed market but most signs are moving toward downward pressure.
If you are planning on buying to hold you can ride out a downturn but you might find better opportunities in markets outside of the bay area.
Sorry I meant to say I'm focusing on Solano and Sacramento county East of the bay area, so far I've seen lots of multi family houses under 400,000 and even 300,000. I think That's still pricey though compared to what I hear other investors are getting out of state. I feel like its simpler for me to start investing local even if its a tougher market, Like someone I cant remember said "its not the market its the marketing". Steven, are you investing or using another strategy in SF?
The BayArea is tough. Dont over leverage , be sure you have stress tested for different scenarios ( higher vacancy rates, lower rent, etc). Dont use HELOCS to finance ( they can be not renewed and they can have int rate changes). Etc etc
Fixers are ok but remember that prices are topping out and properties are not getting many bids, prices are being lowered etc
Sorry I meant to say I'm focusing on Solano and Sacramento county East of the bay area, so far I've seen lots of multi family houses under 400,000 and even 300,000. I think That's still pricey though compared to what I hear other investors are getting out of state. I feel like its simpler for me to start investing local even if its a tougher market, Like someone I cant remember said "its not the market its the marketing". Steven, are you investing or using another strategy in SF?
This is a big country. There are great opportunities out there that you can participate in, if you don't become too provincial. Think outside the box. Ohio, Tennessee, Arizona, Texas, Florida. Invest where you can make money.
Hi @Nigel Ford! I would agree with other posters that if the numbers work now, you should buy now. No one can predict what is going to happen to the market with 100% accuracy. People have been predicting a severe downturn in the housing market for years, yet here we are. I believe you can find some good areas to invest in Solano county. Is house hacking an option for you?
@Kim Stofan
Yes house hacking is an option if i can find an FHA qualified multifamily that was an exceptionally good deal. However i live and work in the same town so id rather rent it out fully in Solano County. Ive just been looking through the MLS and email leads untill i build more credit and capital and get prequalified. Ive heard theirs lots of first time incentives in the area so a bank loan im thinking will be the best way to start for me. And than maybe a second loan for the downpayment from someone else.
Thank you for all of the advice and feedback, i appreciate it very much on my financial journey. Nigel
Below is a normal standard real estate cycle. At what point we are in depends on which city, economy, jobs, population inflow vs outflow, home supply/demand, etc.
sounds like you should buy something more comfartable meaning no brrrr just something that rents and doesnt need alot of work. wont get a lot of cash flow but even if market crashes it will still cash flow and rent. up and down it does as everyone knows. thats a safer bet to get youre feet wet.