Can I just say how fortunate I feel to have not bought a house during the past few years of this real estate craze? When we first moved back to California, we were both working full-time and a mortgage company pre-approved us to buy a $650,000 tract home in Camarillo. Although we knew it was idiotic, almost everyone around us was telling us what a great investment it would be, how the home will go up a gazillion percent in the next year, how we can just refinance our adjustable rate mortgage using the equity we will gain, how everyone does it, and my favorite scare tactic, "Get in now or you'll be shut out of the market forever!"
Consequently, we visited with that same mortgage broker 6 months ago to look at our possibilities of buying a home in Tehachapi. His advice to us, "Do not buy a home right now. Wait." Since then I have had another mortgage broker give us the same advice. You know it's bad when the people selling mortgages are telling you not to buy one!
Of course we're still tempted to buy all the time. I am always wondering, "Is this the bottom? Is this it?" Fortunately, now that the decline of the housing market is a well accepted fact and people are getting scared, I am starting to feel better about our decision to wait. Another good thing is that the market is excellent for renters right now, at least in California. Since so many investors are desperate to fill their homes and there are so many vacant ones, homes are starting to rent for way under "market value".
Since they've started actually verifying people's incomes, we can't buy a $700,000 home anymore. Shucks! I don't really know what the housing market is like in other parts of the country, but in California it is starting to look really good for people like us. This isn't to say that home ownership is a bad thing. I still believe that if you plan on staying in your house for 10 years, you'll obviously make money on it, but it's the house flippers that I want to thank from the bottom of my heart.
Now, if I can just be patient and keep saving...
15 hours ago