OC’s Housing Market, Every Which Way But Up

A Steal at Only $500,00!

A Steal at Only $500,00!

We recently decided to refinance our home, and luckily we were able to get the mortgage rates at their lowest point in a while.

During the process, we were asked what we thought our home was worth, and we gave what we felt was a reasonable answer. Well, after doing comps on the computer, the appraiser came back with a figure that was fifty grand less! Which scared us, because we thought it was already pretty low. But, we bought our property almost eight years ago, which at least put us in a position that wasn’t upside-down.

All homeowners know that their home values have decreased in the past year. At the peak of the housing boom, our home was valued at over $200,000 more than it is now. Ouch! We had been tempted to sell our home and get one of those fancy ARMS.

But let’s face it, real estate prices were highly overinflated, and we are now reaping the consequences of that ill-advised bubble in the form of a recession.

So now that banks are tightening up credit access and in most cases requiring a twenty percent down payment just like the good old days, how much longer can homeowners price small, older houses for over $600,000 like this one?

Yes, it may be a lovely house with lovely features. But it was still built in 1961 with less than 1700 square feet. Does $649,000 sound like a value price to you?

As homeowners, we all want to think our property is worth top dollar. But it’s time to face reality, folks.

2 Comments so far

  1. Dave Share (daveshare) on January 28th, 2009 @ 7:01 pm

    A huge part of me wishes I was already working as a nurse so I could afford to buy right now. A selfish part of me hopes housing prices stay the same or even go lower in 2 years when I’m done with school and can afford something, but for everyone who already owns and is needing money I hope it doesn’t.

  2. frazgo on January 28th, 2009 @ 10:29 pm

    We’re going through the whole refi thingy too right now. With mortgage rates the closest to free on a fixed we had to do it. It will save enough to help fund kid #1’s trip to college next year. The process is so very different than when we bought the house then refi’d for a better rate a few years back. I can’t believe they wouldn’t accept w-2’s like years past but actually had us sign forms to pull copies of our last years tax filings!

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