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Bidding wars break out in Lodi: Is real estate finally stabilizing?

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Posted: Wednesday, April 1, 2009 10:00 pm

When Ryan and Breanna Anderson decided they wanted to purchase a home in Lodi for their young family, they knew they would have to act quickly to take advantage of plummeting prices.

And though prices for homes in the area are down, so is inventory. And interest rates are near historic lows.

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Welcome to the discussion.

15 comments:

  • posted at 5:09 am on Tue, Apr 7, 2009.

    Posts:

    Marc Lutz: "A home in February 2008 that might have been priced for $288,269 went for about $197,296 in February of this year."Please tell us WHO told us that the house was worth $288,269 last year.Was it those same people who today scream "BUY NOW while house prices are still low"? It took a BUYERS AGENT and a SELLERS agent to close those deals. Realtors are supposed to be PROFESSIONALS who "know" real estate prices. WHY WERE THEY ALL WRONG THEN?Why aren't they all wrong NOW?What were these same professionals telling us about that SAME HOUSE price in 2005, 2006, and 2007?What excuse will they give us for being wrong this year on the price. They only risk losing a commission. Buyers including conventional loan types, risk losing their entire life savings on an impled promise, a hope, and a dream weaved by others.We need mortgage interest rates to increase to cover the risks.Consumers should cut up their credit cards and be careful shoppers.Consumers need household budgets that includes saving.

     
  • posted at 4:50 am on Tue, Apr 7, 2009.

    Posts:

    Continued:Since World War II many commercial banks have pretended that SAVING was a good thing. That was before the Bank Glass Steagall Act of 1932 was abolished by President Clinton. Our economic house of cards was caused by REAL ESTATE SPECULATION. Many think that our economy is till on the "high side" of the bubble.Just yesterday, national normally liberal, newspapers such as the Huffington Post and the Chronicle have been assailing president Obama for supporting factors that caused the bubble: His goals: KEEP HOUSE PRICES HIGH, keep bankers solvent--or make them look solvent by terminating mark to market accounting. You think this dump is really worth $700,000, enter that on your ledger.We can each help OURSELVES during this economic downturn by SAVING SAVING AND MORE SAVING. Cut out all non-essential purchases. In many cases, its a TERRIBLE time to buy a house. MORE DEBT is not wealth! Who ALWAYS makes money when you buy or sell?

     
  • posted at 4:28 am on Tue, Apr 7, 2009.

    Posts:

    Larry Underhill:"We got frustrated and (our Realtor) Larry Underhill said, Stick with it, Ryan Anderson said. We learned ... patience and persistence.There is one MORE important factor. SAVING and prudent buying. Even Realtors will tell you to "cool it" with credit card use---but they have their own reasons--so you can qualify for MORE debt via a mortgage, usually through a government GSE or FHA program.To Larry Underhill: Please answer these questions.How much percent do you think a family SHOULD save to protect their future during this RECESSION?Do you recommend 5%? 10% 30% savings per year? Do you advise your buyers to have a savings and spending budget so they can "afford" to be in MORE DEBT through a mortgage? Why isn't that in loan calculators for Debt to Income Ratio or DTI?Many consumers rationalize NOT saving because the banks are paying almost no interest on savings. Why are interest rates for banks to borrow money almost zero, yet consumers can pay up to 60% APR on bank credit cards? Why aren't banks paying consumers reasonable interest on savings deposits?

     
  • posted at 4:11 am on Tue, Apr 7, 2009.

    Posts:

    Ray Waechter-- When you buy something, whether its house or a car, its ALWAYS about PRICE.A Realtor/mortgage company promoted myth is that a typical family should be able to pay 1/3 of their income OR MORE on shelter. This makes NO sense!Anyone who is involved in finance will tell you that most people have too much debt and not enough savings!Investments from Pension plans and 401 K's have lost from 30-60% on the last housing bubble. Wall street bankers killed most of our retirement plans! We can not trust anyone but ourselves to be responsible for our own future. The government and the banks are doing everything possible to keep house prices inflated. This is anti-family.At a personal level, the path to financial responsibility is through prudent spending AND saving. Each one of us should be saving a minimum of 24% of gross income. In the past, saving 12% was the norm. If you pay 30% OR MORE of gross income for shelter, how can you save 24% for future job loss, retirement or illness?The mortgage calculators don't include personal SAVINGS WHY?

     
  • posted at 3:53 am on Tue, Apr 7, 2009.

    Posts:

    Interest rates are the lowest they've been since 1971, said Ryan Sherman, president of the LAR.Ryan, you know better! Realtors always claim that "affordability" means affordable monthly payments. Everyone else defines affordability as COST.Would you buy a new car loaded with everything for only $200/month? NO! Because you know that in a short time you would owe more than the car is worth. REAL Affordability is COST and VALUE. QUESTION FOR RYAN--answer?In your experience, what will happen to house prices when interest rates get back to normal? Remember your definition of affordability! House prices MUST COME DOWN. Todays CNN reported that government surveys showed that 40% of all businesses expected to either reduce salaries or have no increases (exceptions are for bank bailouts and Realtors).Many of us prudent buyers are praying for mortgage interest rates to increase! Why is that? It will force down the rediculously high house prices we have today.The cost of building NEW is under $65/sq ft. A NEW 1600 sq ft house sell LESS than $105,000---and the builder makes a profit!

     
  • posted at 11:44 am on Thu, Apr 2, 2009.

    Posts:

    Congrats on the house. However, we can't see the corner let alone turn it.Before all is said and done, California is going to have 12% unemployment. Those that are unemployed will lose their house. The banks will take em' back, swamp the market and affect the values (as in send them down another 10%)...sorry gang.However, I agree with those who say if you look hard enough you can find a deal. However, you must be qualified and ready to move at a moment's notice.

     
  • posted at 8:03 am on Thu, Apr 2, 2009.

    Posts:

    what everyone here needs to realize is that the banks held moratoriums on countless homes in the area because they were trying to manipulate the housing market. The less foreclosures on the market, the higher the prices can go during the bidding wars. Supposedly, as of March 31, the moratoriums were lifted and scores of homes that have been sitting vacant for lengthy periods of time will hit the market. This will eventually cause the cost to drop again.

     
  • posted at 7:02 am on Thu, Apr 2, 2009.

    Posts:

    I just bought my first house in Galt, escrow closes on the 28th. I had to put a six offers before I got anything accepted. Asking price just wasn't good enough for the banks. All of the offers (except for the last one were at asking price. I finally got a nice fixer-upper for 7k above asking price. There were just a ton of investors and other first time home buyers out there that made competition brutal.

     
  • posted at 6:32 am on Thu, Apr 2, 2009.

    Posts:

    Congratulations Mr. A!!!!

     
  • posted at 5:25 am on Thu, Apr 2, 2009.

    Posts:

    There are some great deals out there if a buyer has PATIENCE! It's taking forever to find a home, and then forever to close the escrow! Congratulations on you recent tax deduction! Hope you have many wonderful years there!

     
  • posted at 4:50 am on Thu, Apr 2, 2009.

    Posts:

    I dont see home prices falling in fact I see a few non distressed homes coming on the market. That is the sign that we have been at the bottom. Remember, California was first in so we will be first out.

     
  • posted at 4:01 am on Thu, Apr 2, 2009.

    Posts:

    3.5% down payment on a home! OMG! No wonder it's so easy to walk away from a mortgage when the going gets tough! Whatever happened to the day of 20% down and payment not to exceed 1/4th of one worker's income? It's no wonder we are in the mess we're in today.

     
  • posted at 3:53 am on Thu, Apr 2, 2009.

    Posts:

    Have to agree with the article jrmagic posted. Home prices will still fall in Lodi. There are still quite a few homes on the road to foreclosure in Lodi as well. Which will also lead to lower prices. Glad a nice family was able to purchase a home though.

     
  • posted at 2:58 am on Thu, Apr 2, 2009.

    Posts:

    Read this: http://online.wsj.com/article/SB123853857749575441.html

     
  • posted at 2:13 am on Thu, Apr 2, 2009.

    Posts:

    Congratulations on your new home. Enjoy!

     
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