Housing market........prices going down?

[Gramps]

I have some friends that have a house in Yorba Linda (east lake). They listed is almost 2 months ago @ $999,900. Only one offer and that was $900,000. Their realtor is saying the market is turning into a buyers market and expect prices and values to drop. Anyone else hear this?

 

[wsuwrhr]

What does the neighborhood comp at dolirwise and how does that house compare to others in the neighborhood sq foot/feature wise?

I have some friends that have a house in Yorba Linda (east lake). They listed is almost 2 months ago @ $999,900. Only one offer and that was $900,000. Their realtor is saying the market is turning into a buyers market and expect prices and values to drop. Anyone else hear this?

 

[2Driver]

I think there is price saturation which leads to sellers having to get price competitive.

The Chinese have dumped a billion dollars of US real estate lately. My loans are aging. My real concern is that there are a lot of single family home projects midway that will be hitting the market.

Our friends sold in Yorba Linda 2 years ago and the Chinese just came in and bought whatever was on the market in the neighborhood, those buyers aren’t there.

 

[OldSchoolBoats]

Geezus.......... again?


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[OldSchoolBoats]

Maybe the Realtor sucks and overpriced it to begin with.

Houses priced correctly are receiving multiple offers still. House around the corner from me just went into escrow. Record price for the area.

Also, houses in that price range don't just sell overnight.....on top of that it was listed during a terrible time to sell. IMO sounds like the agent isn't very good at their job.

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[scottchbrite]

I think it is, stalling or leveling out. I’ve had mine listed since October, dropped the price 30k, no offers. I’m essentially making 2 house payments right now because the new house is almost done.

 

[Tank]

Remember, it's a good thing the prices cool. I see the market around me simmering, things aren't selling as fast but still selling and over 50% of people buying around me are second home / vacation homes which says a lot about the economy. They're steady or just bellow the same prices at the end of the summer but that is NOT abnormal for this time of year. Housing market ritually dips down and slows around Christmas and first of the year. I really think it's going to cool and dip slightly and then pick up a little this spring / summer and hopefully stay consistent. You don't want huge spikes, that's when shit gets scary.

 

[scottchbrite]

Maybe the Realtor sucks and overpriced it to begin with.

Houses priced correctly are receiving multiple offers still. House around the corner from me just went into escrow. Record price for the area.

Also, houses in that price range don't just sell overnight.....on top of that it was listed during a terrible time to sell. IMO sounds like the agent isn't very good at their job.

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I think this is my issue- the realtor

 

[OldSchoolBoats]

I think this is my issue- the realtor

Lots of bad agents out there. Where is your house located? What kind of marketing are they doing?

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[2Driver]

Geezus.......... again?


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Yeah but, It’s a fluid situation like stock and bonds. Why not flush out any new info. Personally, I’m always looking for data.

 

[Gramps]

Here's the house https://www.zillow.com/homedetails/...a-Linda-CA-92886/25396171_zpid/?fullpage=true

Looking at prices in the area it seems to be pretty much inline. I'm thinking their realtor is a dud. The realtor claimed there would be a bidding war when it went on the market.

 

[DC-88]

Maybe the Realtor sucks and overpriced it to begin with.

Houses priced correctly are receiving multiple offers still. House around the corner from me just went into escrow. Record price for the area.

Also, houses in that price range don't just sell overnight.....on top of that it was listed during a terrible time to sell. IMO sounds like the agent isn't very good at their job.

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True, and also what is it's age and finishes. I know for the stuff I'm building if it doesn't look like the Property Brothers stoppped by and took a shit on the whole place nobody's wife is interested.....

 

[OldSchoolBoats]

True, and also what is it's age and finishes. I know for the stuff I'm building if it doesn't look like the Property Brothers stoppped by and took a shit on the whole place nobody's wife is interested.....

So true!!! I work with younger buyers a lot and they have extreme tunnel vision when it comes to homes.

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[scottchbrite]

Lots of bad agents out there. Where is your house located? What kind of marketing are they doing?

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Canyon Hills - Elsinore.
Marketing, I’m not sure. My wife is dealing with it. I’m too busy running subs at the new house. I’m going to get involved after this weekends open house, if nothing happens

 

[Tooms22]

@RiverDave Can we get a stock market/economy section installed so @OldSchoolBoats can just stay in the lounge and play the Bird Box Challenge with the market?

 

[OldSchoolBoats]

Canyon Hills - Elsinore.
Marketing, I’m not sure. My wife is dealing with it. I’m too busy running subs at the new house. I’m going to get involved after this weekends open house, if nothing happens

Might be time to switch things up once the listing expires. Tough area up there too because of tax rate. I am in Temecula and know some agents that crush it in that area. One is an RDP member.

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[Waffles]

Might be time to switch things up once the listing expires. Tough area up there too because of tax rate. I am in Temecula and know some agents that crush it in that area. One is an RDP member.

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So you're saying the markets gonna crash....noted [emoji6]

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[Singleton]

Have no gun for this fight, but Oct-Mar are the worst months to sell. I have two drinking buddies that do RE, both state if you want to sell and you house has not sold by Oct, take it off the market until April and maybe let someone have it as a pocket listing during the slow months.
Most folks move due to work and if they have kids they don’t move mid-year, they move during the summer.

 

[GRADS]

Geezus.......... again?

I was waiting for your post....At least it wasn't me this time.

 

[Mandelon]

The market has definitely cooled. But as I have stated in other threads a return to sanity is not cause for alarm. The prices cannot keep going up at a high rate for too long. Things need to level out, and that is what is happening.

There are considerably more homes on the market than there were earlier in the cycle.
The "hurry up and buy" hysteria is over.
Buyers can wait and see how things shake out.
Buyers can keep looking for a more suitable home and not feel they have to jump in the market or miss out.
Interest rates have moved up a bit.
This time of year is typically not the best season to market a home.

A well marketed and well priced home should still sell fairly quickly. But a junker house that is overpriced won't get much attention.

Funny how everyone complains about the lack of affordable housing but they still want their house to appreciate by 10% a month. I know I do. LOL The market was overheated.

 

[nowski]

Houses listed this time last year flew off the shelf unlike this year. We've seen the peak and now were heading for the valley...

I like the TV commercial that Homelite has, "we sold our house in two days $40k over listing price". That's not going to happen in today's market...

 

[RCDave]

Years and decades of artificially low interest rates, fed money pumping, etc drove the market to unsustainable pricing levels. What goes up too fast, must cool, and fall back to earth.

 

[Mandelon]

Valley seems like a pretty graphic term. In my opinion we have crested the hill and are on the mesa. LOL There's nothing horrible about the economy to lead to a crash again. Notice's of Default are up a tiny bit around the country. About 1%. But it is true that there are more than before. However even in good times 1 to 1.5% of loans end up in default.

People who overbought, or overspend could end up in trouble. Speculators who have overstretched could be in trouble. But for most of us who own... we should be happy to have the increased equity. And buyers should be happy that things have cooled down and there is more inventory to choose from.

Man--> Broker since 89, REO specialist since 93<---delon

 

[pronstar]

Prices can’t rise forever.

And just because they stopped rising (or the rise has slowed), doesn’t mean the market is crashing.


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[Keegster]

The Chinese buyer pool has dried up. Their money is tough to get out of China now. We saw the same thing in Newport Coast/ Crystal Cove. They were buying up properties left and right to park their money here in the states and didn't mind overpaying.

We believe the market has seen a bit of correction depending where you are. We are seeing that view properties are still trading for a premium, and we are still setting records down the coast. Me and my partner just closed on a home in CDM for a record at $7,095,000 in November and another up in Crystal Cove at $9,800,000 for a track home. However, now isn't the time to test the market and hope the home will sell itself. This is when choosing your agent really matters. Your agent needs to be marketing the property correctly, make sure the property presentation is on point( painting and staging goes a long way), and holding open houses.

We are seeing the market level out, we don't forecast a crash. Your gardeners and the local strippers don't own 3 homes like back in 2007/2008. All the shit loans are out. This is more of a normalization period. We were seeing annual appreciation around 4-10% and now we are going to see it drop back to 2-3% annually.

 

[Joe mama]

Guy I do work for just sold his in the east lake area 1.2 and sold the first week full price. His was up to date on finishes and had a nice pool.
That house needs some updating Imo.

 

[COCA COLA COWBOY]

Adjustment/Correction= 15-20% decrease
Crash = 30+% decrease

It's not going to crash.

 

[Gramps]

Guy I do work for just sold his in the east lake area 1.2 and sold the first week full price. His was up to date on finishes and had a nice pool.
That house needs some updating Imo.

needs updating REAL BAD

 

[RodnJen]

needs updating REAL BAD

That’s what I thought. Really nice home in a great area but could use a little updating. A house that size could put a person into six figures in upgrades really quick.

 

[boatnam2]

3 went for sale in last month, all right next to each other, pretty sure all sold full offer in the LBC!

 

[Cobalt232]

Here's the house https://www.zillow.com/homedetails/...a-Linda-CA-92886/25396171_zpid/?fullpage=true

Looking at prices in the area it seems to be pretty much inline. I'm thinking their realtor is a dud. The realtor claimed there would be a bidding war when it went on the market.

Unless parquet flooring is going to make a comeback, that house needs lots of updating.

The house across the street from us in San Clemente just sold a couple months ago after being on the market for over a year. The seller was a realtor and our family joke was she must not have been a good one at that. I guess the joke is on us, it eventually sold full price just under 1.4m to Chinese buyers. The new buyers had a "muralist" painting inside for 6 weeks. The buyers showed up for Christmas week, wrecked their rental suburban then disappeared. Odd.

 

[Mandelon]

A well staged home looks about a jillion times better than an empty shell.

But that Yorba Linda house needs $100K in modernizing. Everybody wants their house to look like Joanna Gaines renovated it.

https://www.hgtv.com/shows/fixer-upper

 

[Groper]

Have no gun for this fight, but Oct-Mar are the worst months to sell. I have two drinking buddies that do RE, both state if you want to sell and you house has not sold by Oct, take it off the market until April and maybe let someone have it as a pocket listing during the slow months.
Most folks move due to work and if they have kids they don’t move mid-year, they move during the summer.

Exactly, January for me has always been the best time to buy, I can remember the last time I've ever been in escrow between May-Sept.
IMO The holiday's are the worst time to sell residential property excluding repo's or distressed properties.

 

[530RL]

Yeah but, It’s a fluid situation like stock and bonds. Why not flush out any new info. Personally, I’m always looking for data.

Today's data.

https://www.cnbc.com/2019/01/07/housing-affordability-map.html

 

[LargeOrangeFont]

Adjustment/Correction= 15-20% decrease
Crash = 30+% decrease

It's not going to crash.

Agreed!

 

[Bobby V]

Here's the house https://www.zillow.com/homedetails/...a-Linda-CA-92886/25396171_zpid/?fullpage=true

Looking at prices in the area it seems to be pretty much inline. I'm thinking their realtor is a dud. The realtor claimed there would be a bidding war when it went on the market.

I live close by this house. I think its priced right for the area. The only issue I see if they have kids, its on the wrong side of Yorba Linda Blvd for kids to go to the newer YLHS. They would have to go to Esperanza HS. Homes for slae on the YLHS side advertise that they are in that schools boundary.

 

[DrunkenSailor]

I would expect it to sell in the 940-960 range. The bones are there but it needs a few things. All of the comps that have sold for right around 1mm have nice pools and upgraded backyards/interiors. The low maintenance back yard may appeal to an older buyer but the size of the house wont.

 

[Classic Daycruiser]

We are still heading higher in Phoenix...last 30 days 1% higher ($4280)...rent value $2200.

 

[GRADS]

"New home sales fell hardest in California, where prices are highest, according to JBRC. Sales dropped 40 percent annually in northern California and 49 percent in southern California."

https://www.cnbc.com/2019/01/07/housing-affordability-map.html

 

[Classic Daycruiser]

"New home sales fell hardest in California, where prices are highest, according to JBRC. Sales dropped 40 percent annually in northern California and 49 percent in southern California."

https://www.cnbc.com/2019/01/07/housing-affordability-map.html

Around here, they are building new homes (without a backyard)....you get a nice 3000sqft home and a two car garage for $460-520k. The community pool area looks nice, but that comes with the HOA Fee.

 

[BHC Vic]

The market changed right in front of my eyes. Literally. I listed my house in chino and got a bunch of offers. It fell through and the next week it was a completely different market. They didn’t sell the norco jousenout from under me because they couldn’t. Literally innthebcouple weeks of us buying and selling the market changed. There’s still two house on my street for sale and prices are dropping. I love my house and I have no complaints about the deal but a big part of me knows I could have paid less for it

 

[beaverretriever]

Does anyone know about buying down interest rates? Is this something a buyer should consider? Plus we only stay in a house two to five years. Any recommendation on what type of loan we should do? We always opt for 30 year fixed with 20 to 35% down because I am so old school.

 

[Mandelon]

Typically you buy down the rate so you can qualify for a house where you can't make the payment if you didn't. If your ratios are super close you can usually negotiate the price so that you pay more points but get a lower rate. You pay a bit more for the house, and the seller can buy down the rate for you.

You know how banks are... pay me now or pay me later.

I say take the 30 year, but make an extra couple payments every year to lower the term.

 

[Cole Trickle]

Does anyone know about buying down interest rates? Is this something a buyer should consider? Plus we only stay in a house two to five years. Any recommendation on what type of loan we should do? We always opt for 30 year fixed with 20 to 35% down because I am so old school.

If you always go with a 30 year you are in my mind continuously kicking the can down the road and basically renting by the time you factor in fees,interest and realtor costs. Lets say you have purchased 3 homes in the past 15 years and are throwing that equity at the new place as a down I would be looking to finance the new house on a 15 year so you aren't paying interest forever and are still on the original pay off path.

 

[DrunkenSailor]

Does anyone know about buying down interest rates? Is this something a buyer should consider? Plus we only stay in a house two to five years. Any recommendation on what type of loan we should do? We always opt for 30 year fixed with 20 to 35% down because I am so old school.

Figure out what the payback would be on the buy down. If it's outside of your 2-5 window keep the cash. Also if you know and I mean KNOW that you aren't going to be in the property passed 5 years I would do a ARM loan. Get the teaser rate upfront and sell before it adjusts. It's a risk for sure because life happens but you will save thousands.

 

[Cdog]

Here's the house https://www.zillow.com/homedetails/...a-Linda-CA-92886/25396171_zpid/?fullpage=true

Looking at prices in the area it seems to be pretty much inline. I'm thinking their realtor is a dud. The realtor claimed there would be a bidding war when it went on the market.

I know Edie the listing agent and have done several transactions with her over the years. She's been around a while and knows what she's doing. Nice home but it's dated. Might consider a price reduction to $974,999.

 

[beaverretriever]

Thanks for all the input.

Payments are always a concern for us as most folks. I just feel getting a 30 year on a house we may only keep for four to six years seems like a waste and thought I would find out if there is a better way to go?

We just put down a deposit on a new house today. They went up 40k as of this morning for the new phase. It will be finished in June and ready for move in. We can put down up to 45% down, but not sure if that is even a good idea. This will be our 4th home in a little over seven years and we have done 30 year fixed on all of them. I am putting my foot down and have told my wife we need to stay at this place for at least five years as I HATE moving all the time. The good side is that it is brand new, four car garage (which I have been wanting for some time) and 3000sq ft so more than enough room for just the two of us and if family wants to come visit.

 

[lbhsbz]

Thanks for all the input.

Payments are always a concern for us as most folks. I just feel getting a 30 year on a house we may only keep for four to six years seems like a waste and thought I would find out if there is a better way to go?

We just put down a deposit on a new house today. They went up 40k as of this morning for the new phase. It will be finished in June and ready for move in. We can put down up to 45% down, but not sure if that is even a good idea. This will be our 4th home in a little over seven years and we have done 30 year fixed on all of them. I am putting my foot down and have told my wife we need to stay at this place for at least five years as I HATE moving all the time. The good side is that it is brand new, four car garage (which I have been wanting for some time) and 3000sq ft so more than enough room for just the two of us and if family wants to come visit.

kinda curious as to why you move so much..

 

[Mandelon]

You can take a 30 year, but pay it down faster. If you take a 15, you are locked into the higher payment. If you go 30, but make extra payments you can accelerate it to whatever term you want. The first half you are mostly paying interest anyway.

Many folks feel that they can earn a higher return than the 4.5% paying a mortgage early will save you. Mortage money is about the cheapest money you can borrow. Time is your friend when owning property.

 

[beaverretriever]

kinda curious as to why you move so much..

My wife is nuts?

Well to be fair this will be only our third house since we moved to Reno/Tahoe area because we sold ours in Vegas which would make it four in a little over seven years. So the first house was nice but too far from everything. It's value went up fast and we captured the equity and moved to a more convenient location for my wife to ride her bike every day. We love our current home, but it was built in 89. We did however do a full renovation on it, but some things you just can't change like hallway width, room sizes etc. Well you can, but there is a point where the home is just not worth putting that money in. It only has a 2.5 wide car garage and the lot would not allow more room to build a larger unit or add on. And again the home just isn't worth putting more money in to. The neighbor hood is in one of the best zip codes in Reno, but in general the home just wont go up a lot more in value until there is no more building to be had on the outskirts of the area. It will always go up, but not as fast as other areas.

On to the new home. It's in one of the best areas of town and going up quicker than most. Plus it's brand new so we are not continuously fixing and replacing things as you do with an older home. It does have a four car garage which is huge for me. I have always wanted a nice place for my crap and the biggest I have ever owned is a three car. It is just a good move for us in general and I hope that we are there at least five to seven years.

My wife and I live WAY below our means. I guess we decided it was time to step it up a little and get a really nice home.