Comments on: Real Homes of Genius: Today we Salute you Cypress. Wait 5 Months, Then Drop Price by $130,000.

By: Reena

Reena — Thu, 17 Apr 2008 00:31:48 +0000

Reply to Omar’s question:

When should you buy? When the price for the home is
3 times your yearly income.
When your monthly mortgage payment on the house is
at least equal or less than going rental rate for this type of property.

Keep saving your money… the higher your downpayment the better.

In the mean time rent… but make sure that your landlord has a proven
track record and isn’t already in foreclosure or behind in his mortgage.

By: Matt

Matt — Wed, 16 Apr 2008 19:45:43 +0000

When looking for a bottom in the bond business we have a little saying that goes along the lines of “It’s not quite shoot yourself time, but it’s definitely get the gun out and clean it time”.

Wait ’til you hear rounds going off, Omar, then you will know.

By: JimAtLaw

JimAtLaw — Wed, 16 Apr 2008 15:35:07 +0000

Worm, I’d go with somewhat higher assumed inflation, maybe putting the house at 245-280 for 4-5% inflation (assuming we are going for the trend line and not an overcorrection), but still overpriced by AT LEAST 150k, assuming 5% annual price gains/inflation over the whole 12 year period. Give it another year or three and we’ll see that 150k slide and perhaps more.

By: Omar

Omar — Wed, 16 Apr 2008 15:19:25 +0000

Thanks for the comments. I guess I have a ways to go then. Better for us since we can continue saving. It’s incredible to actually see prices coming down. I am beginning to find $350,000 properties in real nice areas where you couldn’t find anything below $500,000 just one year ago. I wonder how much lower than will go.

By: eric in vegas

eric in vegas — Wed, 16 Apr 2008 04:55:43 +0000

“What indicators do I have to look for that prices are or about to bottom out?”

When we hit bottom prices will be stagnant for a few years.