Profile picture for ItalySpider

What are your thoughts on home prices in Davis, California? A friend pushes me to buy his!

What are your thoughts on home prices in Davis, California? 

A friend of mine (best friend in college) has been trying to convince me to buy his house in Davis, California when he found out that I am moving my family to Northern California region!  He told me it is the best time to buy in Davis; Davis has good schools for my kids; Davis is immuned from current housing crisis in America; and Davis home prices can only go up!  Are these true?  Any idea is appreciated.  Thanks.
  • February 15 2009 - Davis
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Answers (5)

Profile picture for sunnyview
I am glad that you took a look at everything. Davis is great, but prices did rise pretty strongly during the boom. If you want to buy there, keep cruising the MLS listings and driving through neighborhoods that you like if possible so you get a feel for the market. Davis will never be as cheap as the neighboring communities per square foot, but if you let the market correct you will be able to buy at a more reasonable price in a little while. I don't know where price will settle, but I would expect about a 15% correction in the starter houses in that market. That would mean that a house the is on the market now for about 310K would go for about 263K. It may drop more than than that, but I would expect to see at least that much of a drop. Good luck and congratulations on holding off. I am glad it worked out for you.
  • March 13 2009
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Profile picture for ItalySpider
Davis just starts going down now...
Thank you two again for saving me from buying an over-priced. Hww
  • March 13 2009
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Profile picture for ItalySpider

Thank you sunnyview and azrob!  Your responses are helpful. 

He told me he cannot keep his house because he struggles to keep up with his payment (he still manages to be current as of today though), but I am scared to risk having my 20% down payment wiped out, or worse, become underwater and my own family suffers.  I checked some data about the market there...it looks like most listed houses are not selling, but the asking prices are high.  Many neighboring cities are offering much much lower prices and better deals. 

What do you think the median house price there should be?  How much a 2 or 3-bed should be?  Smart people familiar with Northern California please help!  Thanks!!!

  • February 15 2009
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Profile picture for sunnyview
No, your friend is wrong. I love Davis, went to school there, lived near there for while, but the market there has not corrected yet. I think it will although less than the one nearby in Woodland due to the urban growth boundary. Study the prices historically, study the rents and you will see for yourself that the time is coming, but in my opinion it it not now. PS the schools are very good, but you can rent there for much less than a mortgage payment costs even in a crummy neighborhood there.
  • February 15 2009
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Generally, this type of deal is bad. If your friend actually was selling his/her home at a reasonable price, they wouldn't need to pressure you! somebody would already buy it. If davis prices were so sure to go up, they would keep it and rent it out, to sell it later for more money!

do your own research. what are similar homes selling for? how much do they rent for?

Davis is a very nice place, I lived there for a couple years, but no place is immune from price drops any more.

  • February 15 2009
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