Is SoCal Real Estate seeing the front end of a softening?

[spartacuskzm]

Seems that way to me -I hear mortgage apps are slowing, I've seen offering prices are being reduced, and any houses that aren't dirt cheap ($650K+) seem to be staying on the market longer.

Agree, disagree? Why?

 

[The Stigenator]

a market price correction = yes.

 

[HappyPuppy]

I don't know. I just refi'd my house and it appraised at an astronomical price, way beyond anything I ever thought it should be worth. Real estate is a commodity and is worth whatever the suckers are willing to pay for it.

Interest rates are going up which locks many out of the market, causing prices to "soften" or fall. I've seen this before. Prices go up and prices go down. Buying right now, in my opinion, is the wrong time. Wait a year.

 

[spartacuskzm]

I don't disagree that the prices (and appraisals) are still really high Happy - but I think it's turning at this very moment (though hasn't turned to be extremely noticeable).

 

[HappyPuppy]

I don't know if we are agreeing or disagreeing, spartacus. Interest rates are rising which means fewer people can qualify for loans at existing prices. Fewer buyers means prices are going to decline.

Your choice, I guess, is higher prices with lower APR, or lower prices with higher APR. You would have to run the numbers. As well, I don't know your reason for wanting to buy....a home for your family, rentals, or an investment you will turn over in the near future.

 

[johnjbruin]

I think it has been at its peak for some time now. Hopefully the downward trend begins soon - I have een waiting too long to buy a home - but they are just way TOO expensive right now.

<-- Sick and tired of paying rent and waiting for the house prices to at least go down somewhat

 

[CPA]

Originally posted by: johnjbruin
I think it has been at its peak for some time now. Hopefully the downward trend begins soon - I have een waiting too long to buy a home - but they are just way TOO expensive right now.

<-- Sick and tired of paying rent and waiting for the house prices to at least go down somewhat

ahhh, but that's the catch-22. Prices are coming down because rates are going up and less people are coming into the market. It's becoming a buyers market. If rates come back down you will see prices escalate because folks will want to jump on the low rate. Now this isn't always true, but it looks like thats happening this time around. Overall though, rates are still quit reasonable.

 

[Apex]

I'm hoping it is, but it doesn't seem like it in Palos Verdes.

 

[OS]

Originally posted by: Apex
I'm hoping it is, but it doesn't seem like it in Palos Verdes.

LOL, man you have expensive tastes. Those are like consistently 1 million dollars houses now. It's a damn nice place though. I don't think I've seen a nicer neighborhood anywhere.

As for house prices, I think they've about peaked out. Interest rates are going up and eventually people aren't gonna pay property tax and insurance now that many decent neighborhoods have house prices approaching a half million, even if mortgages are still affordable.

My sis and her husband bought a house in SD at about high 200s about a year and half ago. Their neighbor was trying to sell their house for 600k+ (bigger house, but same lot size). But it's sat on the market for a month now and they've lowered the asking price.

 

[spartacuskzm]

Originally posted by: Apex
I'm hoping it is, but it doesn't seem like it in Palos Verdes.

Funny you say that - I grew up in PV but now live in Newport Beach. I don't think PV has seen anywhere near the run-up that Hermosa, Manhattan, etc have seen. Hell - you have $500K+ homes in Lakewood, $1,000.0 in Pedro (Point Fermin area), and houses in the $700 - $800 range in PV (not many - but some).

I guess the flip side is back in the 80's and early 90's PV was already much more expensive than most areas - it's just that a lot of them have since caught up.

 

[Apex]

Originally posted by: spartacuskzm

Originally posted by: Apex
I'm hoping it is, but it doesn't seem like it in Palos Verdes.

Funny you say that - I grew up in PV but now live in Newport Beach. I don't think PV has seen anywhere near the run-up that Hermosa, Manhattan, etc have seen. Hell - you have $500K+ homes in Lakewood, $1,000.0 in Pedro (Point Fermin area), and houses in the $700 - $800 range in PV (not many - but some).

I guess the flip side is back in the 80's and early 90's PV was already much more expensive than most areas - it's just that a lot of them have since caught up.

Yeah, that's definitely true, some of the surrounding area has really caught up.

I'd love to pick up a place where I can build a proper dedicated home theater, but they're really REALLY hard to find. Might even be easier saving up for a plot of land.