Does anyone really think real estate will go down in SoCal?
 

Over the next couple years, or will it keep going up forever.

Seriously what do you think about it?

I've been hearing some valid arguments on both sides... I can't expect that the market will continue its undaunted inflation... but I don't see prices coming down anytime soon. Speculative buying is slowly seeing a steady decline, rebalancing the market.

Would you recomend renting for a year at this point in the OC or buying since the differance in paying rent is more then what house prices might drop.

Basically $1500 amonth x12 = 18000

Do you think houses might drop more then 18000 in a year from now?

I don't see a drop happening in this area any time soon... Very little real estate left to develop, and everyone wants to come here now it seems. Come rent and join the party though!

You would make that up easily just for the tax shelter..... :2 cents:

I'm a real estate broker based in Irvine [blatant spam: hit me up and I'll give ya a good deal ;-)] .... and this is the most frequently asked question.

Disclaimer: I do not have a crystal ball. What I say here is just my opinion based on the research that has been made available to me by reputable sources.

This is information from the California Association of Realtors winter meetings in San Diego. The projection for the remainder of this year and moving into 2006, for California, is a slight drop in total number of sales, but a continued increase in Sales Price.

Interest Rates are projected to finish 2006 at 6.4 %. Thus, no real big moves in interest rates. NO BUBBLE!! Still a great market as we move forward.

No.

Quite simply put: People don't want to commute to white-collar jobs in Orange County. So instead of sucking it up and living in Riverside, they straddle themselves with a 5-year ARM mortgage on a $1M 2,300sqft house in Irvine/Costa Mesa/Tustin Ranch.

Even if rates were to dramatically rise, it wouldn't affect appreciation rates that much. Would definitely take longer to sell however, so plan ahead.

What rate is that based on? Prime, or 20 year treasury bond, or...?

'Cuz I don't know if you've noticed, but Greenspan and basically every other federal bank head has started a greek chorus about the spectre of inflation. I guess they just now figured out that fuel price increases are going to filter through the supply chain and have real impact on peoples lives. Upshot being, Chmn. "Bubbles" Greenspan's rate increases are gonna come and if the inflationary forces are more extreme than anticipated, they're gonna come in larger than quarter point increases.

It might not go down, but it certainly can't continue at a pace of escalation that significantly exceeds the corresponding growth in personal income.

In economics there is point where growth can no longer be sustained if other factors aren't at the same pace.