Callista's Discussions

thanks 396!!!!! and kismer

While out open housing recently I saw this (7436 Deltawind Dr Sacramento CA 95831) http://listings.golyon.com/content/PropertyDetail.asp?listingnumber=70059007, beautilful house. I really do love it, but I know that the prices here will keep dropping. I am in Sacramento Ca, which as far as I can tell was the epicenter of housing speculation, and the ARM loan fiasco. It appears that prices really went bananas in about 2002, so what I was thinking was that I should apply an appreciation factor (somewhere around 4 percent) compounded yearly to that price and that would tell me what it should cost today.So what I'm wondering is..What have homes appreciated at historically? 3,4,5,6%?What would probably be a fair price for that house? I know that you all are in diferent areas of the country but I have no experience with a normal market,...I don't even know what it looks like.

Wow 396! what an enlightening article. Big thanks for that one.

Klarek also thank you,...It is quite obvious that prices are falling here...I just don't know if I'll be able to tell when we have finally arrived at something supported by traditional economics. I'm patient enough to wait out the fall, lie I said above however I don't evn know what a normal market looks like. By the time I earned my degrees and started working it was late 2001 and things had already gone haywire. Am I to take it you would wait until at least next summer?

You know when homeowners and speculators and flippers were making piles of cash, I don't seem to remember anyone crying big crocodile tears for those of us looking to enter the market. I have been renting for years, waiting for the housing market to come back to earth. I am not sad to see that happen. I'm also not some heartless vulture,...waiting to prey on the misery and misfortune of others. I am ready to pay a fair price for a house..not some inflated bubble price, and it's not my fault if the owner owes more than it's worth. They overpaid all by themselves. 396 is right once again...this will have economic consequences that will effect everyone..which makes me mad as h***. I wasn't there for the party, but I will have to participate in the hangover, like it or not. As for being happy about the falling prices...well...yes I am. I'm happy that I willl soon be able to pay a reasonable price for a house (like I said I've been waiting a while now) does that really make me Satan?

Hmmmm... how anyone could advise someone to buy in Ca right now is kind of a mystery to me. Sonoma county huh Sandy? Well take a drive on over to Sactown and have a look at the blood bath. You'll forgive me if I don't want to become one of the bodies. If you bought a house three years ago and you really are still ahead of the game that surprises me. Most people who bought in Ca in 2004 are now WAY upside down.Aratinga--there is no way in h*** I would use an ARM, or any other bizarre loan. I will only ever be interested in a 30 yr fixed. If I can't afford it with that then I can't afford it. Sandy--unlike your comment implies, I also value having a home for my family..though I choose to wait out this market. I worked long and hard to save my down payment and get good credit. I am not about to blow that by making a stupid move now.

I would also like to know people's background on here as well. Clearly, people on here have some background in Econ and Finance. I'll go first if you like.....

Yes Aldreth I agree 100 percent...Sandy put everything you own into real estate and let us know how it works out for you. You say your market (which is only a few hours from mine) is stable...I say that's more bologna than I had for lunch today! California was the center of the ARM/specuvestor madness (us and florida). I'd bet my right arm that prices here in Sac continue to fall like bricks,..is your market really so different? I doubt it.

Since my region is falling VERY fast..and we have a diverse..mostly stable workforce (government workers) I would say 18 months to 2 years here.

WEll Pedro.....here is what is really going on in California."Job losses worsen fearsEconomic downturn may hit California hardest as real estate slump lingers".http://www.sacbee.com/103/story/367178.htmlAll h*** is breaking loose....and we are ground zero.