7 Comments

1. 

   RJ on September 18, 2013 at 4:14 pm

   Thank you and Richard for taking me to over a dozen homes this weekend and uncovering some gems! You have a great team, Jim!

2. 

   Jim the Realtor on September 18, 2013 at 6:50 pm

   Thanks Ravi, logical buyers like you are what makes my job so enjoyable – I dig the hunt!

3. 

   Jim the Realtor on September 18, 2013 at 6:50 pm

   Mortgage rates surged lower today following the long-awaited policy announcement from the Federal Reserve. Conforming, 30yr Fixed rates fell to 4.5% with some of the more aggressive lenders still competitively priced at lower rates.

   This doesn’t mean that 4.25% at one lender would be equivalent to 4.5% at another lender in terms of closing costs–simply that the 4.25% scenario may be worth looking into to see if the extra cost makes sense for you.

   http://www.mortgagenewsdaily.com/consumer_rates/324804.aspx

4. 

   Just some guy on September 18, 2013 at 8:59 pm

   Ravi, you couldn’t have picked a better realtor to help you hunt for a house down here in San Diego. You’ll be fine.

   Ravi, listening to you is almost like hearing myself. It is impossible to be rational and patient in this market. We finally threw logic and reasoning out the window and pulled the trigger. So long as we stay in the house for the next 15 – 20 years we should be ok. Considering how much cash is floating around buying real estate at ridiculous prices that tells me people are going long on real estate.

   It took two years for me to realize it is not about timing or perceived value per se, but rather monthly cash flow. Now my monthly payments are fixed for the next 30 years.

5. 

   Jim the Realtor on September 18, 2013 at 9:27 pm

   Thanks just some guy – who is closing this week after years of study!

   I like his sale too. Even though it is higher than what we could have paid 1.5 to 2.0 years ago, it is a premium product – the best house we’ve seen throughout the process.

   I think that is one of the primary lessons. If you have to compromise on price, at least buy a great house.

6. 

   RJ on September 18, 2013 at 9:33 pm

   @Jim – what a move in rates! To think that bonds/notes once used to be relatively non-volatile, safe investment instruments. They have now become a fire hose dousing everything in every facet of the economy. The plunge in rates will likely feed, or re-feed, the exuberance in housing. The forecast is that the Fed will keep its foot on the neck of rates until 2015. “Unintended” consequences be damned.

   #Just some guy – I concur. Jim is one of the best Realtors I have had the pleasure working with: logical, numerate, sensible and has the absolute best interest of his clients (me) in mind. He is an island in a sea of mindless RE pushers.
   Re: pulling the trigger – I am in the same boat as you, realizing that I simply need to take the plunge so long as the figures stand to be reasonable over the longer-term or by immediate cash flow. Thanks for sharing your experience! It helps to know others have traveled the same arduous road and managed to have it make sense.

7. 

   No_Such_Reality on September 19, 2013 at 1:53 pm

   How’s the rental market doing?

   In the last bubble, that was the big frustration point for me, the rental market starting getting just as crazy as the bubble and I had multiple friends that were getting forced into moving because the landlords were selling the rentals for the windfall.

   Right now, the market is still barren. In San Diego and OC you still have less than 2 months of inventory. A good balanced market is around 6 months.