When to buy a home?

Question

When do you guys think a smart time to buy a home in The (Bay Area) San jose ,California will be? Without losing tons of money.

Answer 1

Dear Shawn,



         The greater San Francisco area is nowhere near the condition of the economy of the remaining parts of the ailing California economy. I also believe cities  beyond BART are not connected to the stronger SF real estate market. San Jose is more vulnerable due to dependence upon Silicone Valley manufacturing and the absence of international tourism which is supporting the SF area.

         Notwithstanding, values for single family homes are falling due to general economic malaise and credit crunch. San Jose property is more susceptible and likely to decline than SF property.

         If you can buy a home for significantly under present deflated market value you will be well positioned to take advantage of the real estate market upon its recovery in 18 to 24 months.

        If your property is for personal use as opposed to rental investment the risk appears to be balanced by your enjoyment and use of your property. If you are looking for rental income, you will face substantial negative cash flow which would call into question purchasing any real property in the greater San Jose area.

Good Luck and good hunting.....

Answer 2

I think anytime over the next 12 to 18 months is your best bet. I've been looking at foreclosures and short sales for several months (currently in escrow on an investment condo in San Diego). Prices don't seem to have changed much over that time - depends more on the location, condition of the property, etc. So, let's assume that prices are leveling off or just slightly declining still.

Mortgage rates are supposed to be going up slowly in the next couple of years. So, a property you buy a year from now might have a less expensive purchase price, but you'll be paying a higher interest rate. So, the actual monthly cost will be the same or higher as if you bought today.

I would suggest that anyone wanting to get into real estate for investment purposes should start looking now and really take their time. Don't settle for anything less than that perfect jewel. As time goes by, you'll have a really good feel for what's available, where, and for how much. And, when that awesome deal comes along, snap it up, Whether that's one month or one year from now won't make much difference.

Answer 3

That's too broad a question... depends on the house you're getting, condition, etc... NOW could be a great time to buy a home, or it may not be.

For me, i bought a house in Fremont in Feb for 100K under the Appraised cost, so for me, it was a great time to buy. It happened to be a bank-owned property with very little repair work necessary dollar-wise (but was still a bunch of work!). However, buying a home at full price may not be wise at this time either.

no one can time the bottom of the market. Just know that prices now are way lower than they were a year or 2 ago so downside risk is not as big as it was a year or 2 ago.

My best suggestion would be to look at bank-owned REO's and if you're able to physically do home repairs, then that may be your best bet.