The term of the mortgage is irrelevant as most people sell their home on average within 7 years. This long term loan allows more ppl to get into their first home in costly areas such as LA and SF. If however you plan to stay the entire 40-50 years, u can pass down the home/mortgage to the next generation.

santa barbara's real estate is fucking insane. $$$$$$$$$$$

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The house we're living in is worth $638,571. Yeah, we are renters. There's no way in hell I can afford to buy a place in Orange County with this kind of market!

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*Depeche Mode* Appreciation

$886,534

bah... and i'm not even at the coastal part of huntington beach!!

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being that this site uses title records of comparable sales and automatically averages the value its highly innacurate. The house I'm in now it says is worth 471K and with the market in california completely levelling off its much closer to 425K.

Plus to give you an example I just had a loan sign 2 days ago in Covelo, CA (Near Eureka, CA in Mendecino County) and it said the value was 148K and it got appraised for 220K.

Deffinitely an interesting site and I like that they give you a satellite mapping of the housing like terraserver.microsoft.com or google earth but the values are generated by a program and are deffinitely not reliable. I use property valuation service sites such as www.sitex.com and others to pull title info on homes to get an idea of value and the sites I use are pay sites that charge our business account per property we check. So thats pretty cool they opening a similar basic service to the public.

But its basically a tool to market real estate services they offer as well as advertisements. But having said that it does give the average home owner a broad range of what their home is worth. In most cases its going to be quite higher then reality.

As for 50yr term loans (in Japan they have 60yr term loans) I haven't heard any lender actually except it and I'd be shocked to see them so early since we've only been doing 40yr term loans for 1 year. Either way when/if it comes, its just another 'creative financing' option to sustain a healthy market. Other creative financing options like interest only, pay option arms/negam loans, and 40yr term loans just put off the inevitable. The 50yr will in no way boost home prices because they are completely bloated and this inflation will and has already began to flatten out. Not to mention Greenspan stepped down out of the Federal Reserve on 1/31/06 and the new head Ben Bernanke raised the prime rate from 7.25 to 7.50. And is planning to slowly and staggerdly raise the rates each Federal Reserve meeting. That means in the next 12-24 months we will all see the entire US market flatten (in some areas its decreased such as SD & LA which some homes during January went down 5 - 10%, with the national median home price going down 2% in January). Now this flattening and in some areas decreasing is typical of winter and it will bounce back a very small amount during this summer but when you combine an over inflated market, increasing fed rates, and the median income can't support purchasing homes at these prices at higher rates then its time for the wave to come down (and already has in some areas, hell some places like Detroit, MI the wave came down last year and I was having homes appraised that were 5% lower than they were in 2003 due to lack of sales and people defaulting on their loans and subsequent foreclosures). Now the bubble is bursting but the feds will make sure its a slow leak that will take quite some time.

As far as booming home prices and appreciation we've seen post 9/11, that is a thing of the past. The only reason we've all witnessed the impressive and over the top appreciation and jumps in home equity in the last 4+ years is because we've had a healthy economy and the feds dropped the rates to record lows after 9/11 to sustain our economy. Those incredible fed rates had lenders offering 4% fixed rates, 3% adjustable rates, and 1% negam loans so immediately that opened up the market to countless qualified borrowers. And sales drive the market value so homes in CA were going up 20% to even 50% a year in some parts. Now after all this activity and record home prices we are seeing the affects of inflation and the feds are upping the rates to slow it down and eventually level it off and bring some balance finally to home prices. Infact a lot of fellow brokers/friends of mine are waiting to buy a home till 2007 or later when things level off and in some areas decrease to a stable level.

/broker rant

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Last edited by ninetyninej on Feb-16-2006 at 10:57

quote:

Originally posted by ninetyninej being that this site uses title records of comparable sales and automatically averages the value its highly innacurate. The house I'm in now it says is worth 471K and with the market in california completely levelling off its much closer to 425K. Plus to give you an example I just had a loan sign 2 days ago in Covelo, CA (Near Eureka, CA in Mendecino County) and it said the value was 148K and it got appraised for 220K. Deffinitely an interesting site and I like that they give you a satellite mapping of the housing like terraserver.microsoft.com or google earth but the values are generated by a program and are deffinitely not reliable. I use property valuation service sites such as www.sitex.com and others to pull title info on homes to get an idea of value and the sites I use are pay sites that charge our business account per property we check. So thats pretty cool they opening a similar basic service to the public. But its basically a tool to market real estate services they offer as well as advertisements. But having said that it does give the average home owner a broad range of what their home is worth. In most cases its going to be quite higher then reality. As for 50yr term loans (in Japan they have 60yr term loans) I haven't heard any lender actually except it and I'd be shocked to see them so early since we've only been doing 40yr term loans for 1 year. Either way when/if it comes, its just another 'creative financing' option to sustain a healthy market. Other creative financing options like interest only, pay option arms/negam loans, and 40yr term loans just put off the inevitable. The 50yr will in no way boost home prices because they are completely bloated and this inflation will and has already began to flatten out. Not to mention Greenspan stepped down out of the Federal Reserve on 1/31/06 and the new head Ben Bernanke raised the prime rate from 7.25 to 7.50. And is planning to slowly and staggerdly raise the rates each Federal Reserve meeting. That means in the next 12-24 months we will all see the entire US market flatten (in some areas its decreased such as SD & LA which some homes during January went down 5 - 10%, with the national median home price going down 2% in January). Now this flattening and in some areas decreasing is typical of winter and it will bounce back a very small amount during this summer but when you combine an over inflated market, increasing fed rates, and the median income can't support purchasing homes at these prices at higher rates then its time for the wave to come down (and already has in some areas, hell some places like Detroit, MI the wave came down last year and I was having homes appraised that were 5% lower than they were in 2003 due to lack of sales and people defaulting on their loans and subsequent foreclosures). Now the bubble is bursting but the feds will make sure its a slow leak that will take quite some time. As far as booming home prices and appreciation we've seen post 9/11, that is a thing of the past. The only reason we've all witnessed the impressive and over the top appreciation and jumps in home equity in the last 4+ years is because we've had a healthy economy and the feds dropped the rates to record lows after 9/11 to sustain our economy. Those incredible fed rates had lenders offering 4% fixed rates, 3% adjustable rates, and 1% negam loans so immediately that opened up the market to countless qualified borrowers. And sales drive the market value so homes in CA were going up 20% to even 50% a year in some parts. Now after all this activity and record home prices we are seeing the affects of inflation and the feds are upping the rates to slow it down and eventually level it off and bring some balance finally to home prices. Infact a lot of fellow brokers/friends of mine are waiting to buy a home till 2007 or later when things level off and in some areas decrease to a stable level. /broker rant

zzzzzzzzzz

quote:

Originally posted by SVGmethod santa barbara's real estate is fucking insane. $$$$$$$$$$$

CA's real estate is fucking insane!
My parents bulit a new house in Fl for Less then 200K and it is Nice! Here you can not even get me a fixer-uper or a small condo for that!!

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quote:

Originally posted by sweetcandy girl CA's real estate is fucking insane! My parents bulit a new house in Fl for Less then 200K and it is Nice! Here you can not even get me a fixer-uper or a small condo for that!!

When my parents bought our house in 1998 it was a fixer upper. They bought it for $130K, and in 8 years is now worth over half a million. My father has spent so much in making our house what it is now. Actually, him and I are building a second house together on the huge lot behind.

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quote:

Originally posted by DjWoody When my parents bought our house in 1998 it was a fixer upper. They bought it for $130K, and in 8 years is now worth over half a million. My father has spent so much in making our house what it is now. Actually, him and I are building a second house together on the huge lot behind.

CA has been amazing these past 5+ years...a friend of mine built a home in 2002 up in Sac (which has been huge but not as good as socal/sd) and it cost him like 300K and its worth like 700K. I refi'd this lady last year who had a 2bed 1bath 900 square foot home in LA that was like 30 years old and in bad condition and it appraised for 368K! Gotta love Cali.

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quote:

Originally posted by ivanbee zzzzzzzzzz

nvm it was just a rant, disregard it

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my uncle bought this house from my grandfather for around 250,000 in the 80's and now the fuckin thing is worth 1.5 million after some basic remodeling!

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