Sunnyvale, CA · Member since 2015 · 7 posts · 0 votes
We have been on the lookout for the past 5-6 months for a primary home. There were very few homes in our market during Jan-March, and April seems to be a bidding war on the few homes(still not that many) that are popping up(between 40-60k on 250-300k homes) from the previous estimates 6 months ago. We are so frustrated that we are ready to cave in and pay whatever to own a house. Just wanted to seek opinions here on whether we should still hold on for a few more months or not. We do not have a real urgency(no school going children etc), but would like to move to a home sometime in the near future.
Realtor · Santa Ana, CA · Member since 2014 · 131 posts · 111 votes
5y
Properties in Southern California are easily appreciating at 1% per month. Let's say that you did have to bid over the list price to win, within a few months values will catch up to what you paid for the home. At the same time, you're locking in an interest rate that is near 50 year lows ( average interest rates for home loans over the last 50 years is 7.9% ) . Once you factor in the savings of a great rate, pull the trigger and buy your home. Even if values drop a little, time, appreciation and a great interest rate will make your home a Winner.
Realtor · Chicago, IL · Member since 2019 · 274 posts · 191 votes
5y
@Shrikant V.- It is always a good time to buy. Just make sure that you are not paying whatever on a house! Be smart and find yourself a deal, they are always out there:)
Are you working with a realtor? If not find one who has a number of listings similar to what you are looking for. While their current listings may be under contract, they can let you know when new ones come on the market. If you see something you like, be prepared to put an offer in right away.
Rental Property Investor · Surprise, AZ · Member since 2020 · 405 posts · 179 votes
5y
@Shrikant V.
Make sure the house is worth it to you and you aren’t overpaying too much. It’s hard to say what the market would do in the coming months. It could go up or down. There are however still a lot more buyers in the market than houses so I don’t foresee it crashing this year....
Realtor · Santa Ana, CA · Member since 2014 · 131 posts · 111 votes
5y
Properties in Southern California are easily appreciating at 1% per month. Let's say that you did have to bid over the list price to win, within a few months values will catch up to what you paid for the home. At the same time, you're locking in an interest rate that is near 50 year lows ( average interest rates for home loans over the last 50 years is 7.9% ) . Once you factor in the savings of a great rate, pull the trigger and buy your home. Even if values drop a little, time, appreciation and a great interest rate will make your home a Winner.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y
You probably thought the prices were overpriced 6 months ago when you didn’t buy. You were wrong then, you might be wrong about today’s prices. If you can afford the new payments you’ll save rent and I think everyone agrees prices will be higher in 10-20 years than they are today. So as long s you plan to stay that long you should be golden.
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Shrikant V. It really depends on your near term and longterm outlook on the market and where you think prices are heading. If you believe there will be a correction wait. If not, buy. I’m still a buyer. I do think prices will plateau at some point but I don’t personally think there will be a major correction any time soon. Of course no one knows the future.
Realtor · Ogden, UT · Member since 2019 · 338 posts · 415 votes
5y
@Shrikant V. never choose to wait. I would much rather buy real estate and wait than wait to buy real estate. I know it’s brutal out there but make sure you’ve got a savvy agent who’s consistently putting homes under contract so he or she can guide you through a winning offer
Real Estate Agent · Allentown, NJ · Member since 2014 · 39 posts · 44 votes
5y
Can you still afford to buy if interest rates go up 1 or 2 points? If the answer is yes, then wait. You will have more to choose from and less competition once covid fears subside and rates rise. Right now everyone and their mother is getting approved for loans with 3.5-5% down. If you get 10 of those people bidding on a house, it drives the price way up, but guess who ultimately wins? The all-cash buyer or the buyer with 20% or more down.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y
Paul brings up a good point. Once the fear of covid is over the buyers will come out of the woodwork and there will be even less inventory and even higher prices. The only way more sellers would help is if those people are moving in with relatives. If they just buy another house you didn’t really gain any inventory. With the economy picking up and more and more people feeling their job is secure they also may be moving out of their friends/relatives homes further reducing inventory.