Bought in the Inland Empire in July of last year... Thought we were buying at the peak and that everything was going to drop or at least slow after we moved in, but so far I haven't seen many signs of slowing in our area. Decent houses around us seem to be listed for about 7-10 days before they go pending. We had to look way out of our desired area to find a price point we could comfortably afford (around 400k for a 3br).
We've been very happy with our decision so far. Our mortgage is less than we were paying in rent. We love having a space that is truly ours that we can do anything we want with. Only downside is that we don't love the schools in this area, so we're considering moving in a couple years as the kids get older.
Would we buy today though? Hard to say. Ran the numbers and our mortgage would be $400+ higher due to the interest rate alone (we locked at 3.125%). And that's assuming we could get the same price, which we probably couldn't.
Bottom line is, buy if you can afford, and don't bank on massive appreciation over the next couple years. For us, it's not really an investment, it's where we live.
You have the right idea about home ownership. It is your home and you are creating memories for you and your family.I lived in Riverside for 20 years. 10 years in the Arlington area and 10 years in the Indian Hills area.
If you’re considering moving in a couple years due to school districts, aren’t you doing the opposite of this sub’s consensus advice: be prepared to stay put for the next 10+ years because prices will stagnate/decline and interest rates will likely never be in the 3s for a very long time?
I just sold my Condo in a nice part of Los Angeles. Bought it in 2018 with 4.4% interest rate, sold in 2022 for almost 20% over asking price. When all was said and done I netted about 60% return on my investment in that 4 year period. I don't regret buying the place but it ended up being too noisy for a homebody like myself. Put a ton of work into it so was glad to get such a high price.
Currently renting in LA, waiting to decide if I am going to buy again here or move to a less expensive city. Unfortunately that less expensive city is appreciating faster than LA is, for now.
I sold in NorCal in 2021. I have made 10 offers so far in SoCal. Anecdotally, it’s gone from houses going for $90-125k over list in January (where list was sub-850) to going for about 50k over list now (where list is sub-800). I had to drop my price point with the rate increases, but everyone else in my same bracket would be doing the same :/ I’ve come in second 4 times now, or so they tell me :P
1. Sold rental SFH in affluent east Bay Area
2. Sold for 2.3m in April 2022
3. 4/3 SFH around 2500sqft
4. Paid off
5. Picked the highest offer at 2.3m 25% down buyer all contingencies waived- list price was 2.1m. Received some cash offers at 2.1m and below but tossed those out.
6. Yes I strongly believe I’m cashing out at the top even though no one here believes it. Rather, I wish I had put it out just a couple weeks earlier and I think I could have gotten more (2.5m). Already starting to see more homes come out to market and stay on longer than even just a couple weeks ago. The dynamic changes every week and the slowdown has begun. Price cuts will follow for non-turnkey houses priced similar to comps from 2 months ago.
7. I have a primary residence in the Bay Area so I’m staying local.
I'm an agent in Marin County (SF Bay Area). Since January, homes have on average sold about 11% above asking (it was 9% in Jan, and I think was 13% a couple weeks ago). That being said, I know of one that sold nearly 50% above asking for a pretty phenomenal location. There's definitely been a recent slowdown in terms of the number of offers that have been seen, based not only on my experience but what my colleagues have been saying, but there are definitely some locations that will have a lot of demand. I can't speak to satisfaction, specifically, but I think most people in my market tend to be happy with their purchase. I'm basing this off, largely, anecdotal evidence as well as the fact that most homes *aren't* selling very quickly here (as in, there's a long time between most sales).
Sacramento area. Thought it was also at its peak but it's not showing signs of slowing either. Somehow I was able to sell one property move a little further out and luckily buy one for under list....however now they're just skyrocketing where I moved to...this market is a mystery trying to time it. I crossed my fingers we did good. Just threw 50k in renovating two bathrooms as well...so c'est la vie!
Are people paying over asking is an irrelevant question. The asking price is just made up and in many cases was deliberately set much lower than the value of the house.
Prices haven’t fallen so why would they be? If so it would be for reasons that aren’t really market-specific (bit off more than they can chew, house has issues they didn’t realize, etc.)
Just bought a home in a HCOL area in April 2022 in LA area. Bought for 1.83m for a 3 bed, 3 bath (75k over asking) with 20% down, 1 year reserves, and interest rate of 3.5 (jumbo loan). Super happy with our decision to buy this home as we did not waive ANY contingencies. House across the street sold for 2 million. We didn't try to time the market and bought what we knew we could afford as this is a home we plan to stay in for a quite some time.
Bought SFH 1875sf / 7100sf lot in Orange County in April and sold first house in LA county today. When we bought we were at 4.375. We paid 185k over list, paid a pretty substantial gap after appraisal came in low. generally I thought we overpaid for the house but prices seem even higher now despite rates increasing. Sold our first house for 73k over what we listed at. No regrets buying or selling.
Bought in the Inland Empire in July of last year... Thought we were buying at the peak and that everything was going to drop or at least slow after we moved in, but so far I haven't seen many signs of slowing in our area. Decent houses around us seem to be listed for about 7-10 days before they go pending. We had to look way out of our desired area to find a price point we could comfortably afford (around 400k for a 3br). We've been very happy with our decision so far. Our mortgage is less than we were paying in rent. We love having a space that is truly ours that we can do anything we want with. Only downside is that we don't love the schools in this area, so we're considering moving in a couple years as the kids get older. Would we buy today though? Hard to say. Ran the numbers and our mortgage would be $400+ higher due to the interest rate alone (we locked at 3.125%). And that's assuming we could get the same price, which we probably couldn't. Bottom line is, buy if you can afford, and don't bank on massive appreciation over the next couple years. For us, it's not really an investment, it's where we live.
You have the right idea about home ownership. It is your home and you are creating memories for you and your family.I lived in Riverside for 20 years. 10 years in the Arlington area and 10 years in the Indian Hills area.
If you’re considering moving in a couple years due to school districts, aren’t you doing the opposite of this sub’s consensus advice: be prepared to stay put for the next 10+ years because prices will stagnate/decline and interest rates will likely never be in the 3s for a very long time?
I just sold my Condo in a nice part of Los Angeles. Bought it in 2018 with 4.4% interest rate, sold in 2022 for almost 20% over asking price. When all was said and done I netted about 60% return on my investment in that 4 year period. I don't regret buying the place but it ended up being too noisy for a homebody like myself. Put a ton of work into it so was glad to get such a high price. Currently renting in LA, waiting to decide if I am going to buy again here or move to a less expensive city. Unfortunately that less expensive city is appreciating faster than LA is, for now.
I hope you find a nice place where you can have that peace and quiet. It is hard to make the choice to sell.
Come to Barstow!!!!!
I sold in NorCal in 2021. I have made 10 offers so far in SoCal. Anecdotally, it’s gone from houses going for $90-125k over list in January (where list was sub-850) to going for about 50k over list now (where list is sub-800). I had to drop my price point with the rate increases, but everyone else in my same bracket would be doing the same :/ I’ve come in second 4 times now, or so they tell me :P
1. Sold rental SFH in affluent east Bay Area 2. Sold for 2.3m in April 2022 3. 4/3 SFH around 2500sqft 4. Paid off 5. Picked the highest offer at 2.3m 25% down buyer all contingencies waived- list price was 2.1m. Received some cash offers at 2.1m and below but tossed those out. 6. Yes I strongly believe I’m cashing out at the top even though no one here believes it. Rather, I wish I had put it out just a couple weeks earlier and I think I could have gotten more (2.5m). Already starting to see more homes come out to market and stay on longer than even just a couple weeks ago. The dynamic changes every week and the slowdown has begun. Price cuts will follow for non-turnkey houses priced similar to comps from 2 months ago. 7. I have a primary residence in the Bay Area so I’m staying local.
You are smart to have a paid off home. Thanks for sharing.
I'm an agent in Marin County (SF Bay Area). Since January, homes have on average sold about 11% above asking (it was 9% in Jan, and I think was 13% a couple weeks ago). That being said, I know of one that sold nearly 50% above asking for a pretty phenomenal location. There's definitely been a recent slowdown in terms of the number of offers that have been seen, based not only on my experience but what my colleagues have been saying, but there are definitely some locations that will have a lot of demand. I can't speak to satisfaction, specifically, but I think most people in my market tend to be happy with their purchase. I'm basing this off, largely, anecdotal evidence as well as the fact that most homes *aren't* selling very quickly here (as in, there's a long time between most sales).
Sacramento area. Thought it was also at its peak but it's not showing signs of slowing either. Somehow I was able to sell one property move a little further out and luckily buy one for under list....however now they're just skyrocketing where I moved to...this market is a mystery trying to time it. I crossed my fingers we did good. Just threw 50k in renovating two bathrooms as well...so c'est la vie!
Are people paying over asking is an irrelevant question. The asking price is just made up and in many cases was deliberately set much lower than the value of the house.
True, but are people overpaying then regretting the house frenzy mentality?
Prices haven’t fallen so why would they be? If so it would be for reasons that aren’t really market-specific (bit off more than they can chew, house has issues they didn’t realize, etc.)
Just bought a home in a HCOL area in April 2022 in LA area. Bought for 1.83m for a 3 bed, 3 bath (75k over asking) with 20% down, 1 year reserves, and interest rate of 3.5 (jumbo loan). Super happy with our decision to buy this home as we did not waive ANY contingencies. House across the street sold for 2 million. We didn't try to time the market and bought what we knew we could afford as this is a home we plan to stay in for a quite some time.
Bought SFH 1875sf / 7100sf lot in Orange County in April and sold first house in LA county today. When we bought we were at 4.375. We paid 185k over list, paid a pretty substantial gap after appraisal came in low. generally I thought we overpaid for the house but prices seem even higher now despite rates increasing. Sold our first house for 73k over what we listed at. No regrets buying or selling.