Piggs Housing Pulse - How many of us purchased RE (primary residence)

Submitted by SD Transplant on July 31, 2012 - 1:58pm
I purchased RE(primary residence) long before the bubble (prior 2001)
11% (10 votes)
I purchased RE(primary residence) during the bubble 2002-2006
5% (5 votes)
I purchased RE after the bubble popped and didn't belive prices will drop further 2007-2008
8% (7 votes)
I was a wise pigg and purchased my primary house after the RE absolute bottom 2009
11% (10 votes)
I was a wise pigg and purchased my primary house in 2010
15% (14 votes)
I was a wise pigg and purchased my primary house in 2011
25% (23 votes)
I was a wise pigg and purchased my primary house in 2012
15% (14 votes)
I'm a smart pig and don't believe in purchasing RE/primary house......RENT is king
9% (8 votes)
What? A RE bubble? prices never go down in RE.....I always purchase RE (investments etc)
1% (1 vote)
Total votes: 92
Submitted by SD Transplant on July 31, 2012 - 2:03pm.

Having been a member of this forum for over 6 years, I would love to test the pulse of when piggs purchased RE (specifically looking at the primary residence). I came to this site specifically looking for housing data, so I know I was in the "doom & gloom" teritory. I did however purchased my first house in Jan 2011...I'm curious now how many piggs are home ownever vs. renters & when they purchased their place :)

Note: I know I could have been asking the questions many other ways, and some might not agree w/ my timeline (years.....but it's aproximate).

Submitted by FormerSanDiegan on July 31, 2012 - 2:47pm.

Some of us have owned multiple primary residences. Do you want us to indicate our first primary home purchase ?

Submitted by poorgradstudent on July 31, 2012 - 3:20pm.

If we could afford it we would have bought our first home this year. But we chose to have a baby instead and are still saving for a down payment. Where's my No-No loan? :)

Submitted by CA renter on July 31, 2012 - 3:58pm.

Congratulations, poorgradstudent! :)

Though babies are horrible investments, they are so worth every penny...unlike houses.

Submitted by spdrun on July 31, 2012 - 4:08pm.

Meh, world is overpopulated anyway. Congrats to poorgradstudent despite this :)

Submitted by sdduuuude on July 31, 2012 - 4:36pm.

poorgradstudent wrote:
If we could afford it we would have bought our first home this year. But we chose to have a baby instead and are still saving for a down payment. Where's my No-No loan? :)

I think you'll find that kids, especially for the first few years, cost less than you expect, though they take much, much more time than you could ever imagine.

Submitted by sdduuuude on July 31, 2012 - 4:39pm.

SD Transplant wrote:
I was a wise pigg and purchased my primary house after the RE absolute bottom 2009

Edit for those still bearish:

"... after the first RE bottom"

Submitted by sdduuuude on July 31, 2012 - 4:40pm.

Good poll. Already seeing something interesting. No buyers in 2010 or 2012.

Submitted by desmond on July 31, 2012 - 4:51pm.

CA renter wrote:
Congratulations, poorgradstudent! :)

Though babies are horrible investments, they are so worth every penny...unlike houses.

That comment should be updated to the present time- "babies are worth every $million$" congrats poorgrad.

Submitted by sdrealtor on July 31, 2012 - 4:58pm.

sdduuuude wrote:
Good poll. Already seeing something interesting. No buyers in 2010 or 2012.

Could the reason for no 2012 buyers be due to how difficult it is to actually buy a desirable primary. At a fair price in the current market?

Submitted by Diego Mamani on July 31, 2012 - 5:08pm.

sdrealtor wrote:
sdduuuude wrote:
Good poll. Already seeing something interesting. No buyers in 2010 or 2012.

Could the reason for no 2012 buyers be due to how difficult it is to actually buy a desirable primary. At a fair price in the current market?
Most wise Piggs would have bought in 2011, back then it looked like interest rates couldn't possibly drop further (although they did). The 2012 buyers probably don't check this blog every 10 minutes...

Submitted by matt-waiting on July 31, 2012 - 5:14pm.

Waiting no longer. Bought in early 2011. Zero appreciation since then, but payment is same as my old rent, so no complaints.

My reasoning was that "interest rates could not get any lower" and still not lots of competition.

Have refied twice since then.

Submitted by flu on July 31, 2012 - 6:40pm.

sdduuuude wrote:
poorgradstudent wrote:
If we could afford it we would have bought our first home this year. But we chose to have a baby instead and are still saving for a down payment. Where's my No-No loan? :)

I think you'll find that kids, especially for the first few years, cost less than you expect, though they take much, much more time than you could ever imagine.

I just send my kid to Xe/Blackwater, and let them deal with it.

Submitted by Essbee on July 31, 2012 - 9:27pm.

Bought one just after the peak in 2006, and then sold it and bought another in 2012.

I voted 2012, though, since there was no, "more than one of the above" option.

Submitted by flyer on July 31, 2012 - 10:14pm.

Purchased all primarys and rentals pre-2001. Sometimes being 50 does have it's advantages.

Submitted by AN on July 31, 2012 - 11:34pm.

I bought in 2008. However, I was prepared to lose 20%. That 20% decline never came. A few properties in worse condition than mine (when I bought it) just went pending after just a few weeks on the market with asking price higher than my purchased price. One that closed, closes 10% higher than my purchase price.

Submitted by blahblahblah on August 1, 2012 - 6:30am.

Bought in 2009. Our house may have actually lost value since then, but we are not really sure since there have been so few sales in our neighborhood. I don't care much if it goes down though because I'm not going anywhere. We like it better than the rental we had before.

Submitted by ocrenter on August 1, 2012 - 7:12am.

We did purchase in the middle of the bubble, 2004. But sold at the very peak in 2005. So I didn't pick the "bought at the peak" option.

Purchased within a week of 2009, so selected the 2009 option. We prepared ourselves for a 10% drop that also never came. We did have to put in about $170k of improvement after purchase. Just had the house appraised and we are up $320k.

But the best part is mortgage payment is now 40% less compared to time of purchase. A special shout out to the Fed and the guys that manipulated LIBOR.

Submitted by no_such_reality on August 1, 2012 - 7:10am.

Didn't see a this train wreck is just getting started but we bought anyway in2010 option.

The trainwreck is still justvgetting started

Submitted by UCGal on August 1, 2012 - 9:45am.

Congrats poorgradstudent.

I bought in early 2002, which you have in the bubble. It felt a little pre-bubble since the zillow price on the house went up another huge chunk after we bought, then settled back to around our purchase price.... maybe a bit lower than purchase price. (not counting the granny flat we added - which changes the value.)

This was my first home purchase in CA. Despite growing up here - I left in my late 20's, in part, because real estate was going crazy. That was 1990. I bought in WA state, sold for a profit. Bought in PA, sold for a profit... took that equity, and dumped it in here. So my current home is my third real estate purchase.

Submitted by sdrealtor on August 1, 2012 - 10:04am.

Bought first primary in CA in 1997. It felt expensive and I thought I was an idiot spending close to $200K for a townhouse in Encinitas. Traded up two steps in 1999 to a new house in neighborhood that I knew I would be happy raising a family in for the duration. It felt insanely expensive for what I bought but never planned to sell this one.

Back then we used 5/1 ARM's with rates in the 7 to 8% range. In 1999 I figured it would be really cool if the house went up with inflation and would be worth $1M in 20 to 25 years when the kids were gone. I was astounded when it almost got there in 2004 and knew it wouldnt last.

Submitted by jwizzle on August 1, 2012 - 10:25am.

sdduuuude wrote:
poorgradstudent wrote:
If we could afford it we would have bought our first home this year. But we chose to have a baby instead and are still saving for a down payment. Where's my No-No loan? :)

I think you'll find that kids, especially for the first few years, cost less than you expect, though they take much, much more time than you could ever imagine.

I think this depends on whether both parents are employed full time (or whether they have family help) - the cost of full time infant/toddler daycare is astronomical. We have been looking at private preschools for #1, and still can't get over the fact that La Jolla Country Day is cheaper than what we will pay for infant daycare for #2.

On topic, poorgradstudent - we did the same thing in 2009 (were ready to buy a house, then changed our mind bc of baby). We bought in 2011. Even though I may have missed out on the absolute bottom, I don't regret this for a second! (although, if buying before you have the baby is an option, even with a lower down payment, you might want to consider it because our lender counted the cost of daycare as part of our monthly "debt" when doing our D/I ratios.)

Submitted by rent4now on August 1, 2012 - 10:58am.

Bought a condo in 02, sold it 2yrs later for 2x what we paid.
Rolled that into our next house in 04. Started reading piggington and sold
8 months later in 05 at the absolute top. Walked away without losing anything and was on the sidelines for 7yrs.
We found a perfect home late 2011.

If it wasn't for you guys we would have been really upside down!
Thanks :)

Submitted by exsdgal on August 1, 2012 - 11:07am.

Bought our first house in '98 and purchased a move up/forever house (although smaller) in 2012.

Submitted by sdrealtor on August 1, 2012 - 11:29am.

Some great stories! Piggs Rock!

exsdgal
Did you keep the 98 house or sell it? if so when?

Submitted by sdrealtor on August 1, 2012 - 11:31am.

I'm with jwizzle on the cost of kids depending. When my first was born both parents worked full time out of the house. He also required the most expensive formula known to mankind. Its was 3 times the cost of traditional formulas.

Submitted by savedbypigs on August 1, 2012 - 12:57pm.

Nearly bought in 2008, until a wise friend turned me on to this site. Ended up buying in November 2011 and got a much better property, with better payments, than the 2008 place. Plus, I probably would have been quite upside down had I bought in 2008.

So I would like to extend a huge thank you to Rich and all the Piggs who contribute to this site. I consider myself very fortunate that I did not buy when practically everyone (save my Pigg friend) told me I should. Plus, I've gained much valuable knowledge that I would not have otherwise come by. Thanks Piggs!

"Saved" Lurker

Submitted by thejq on August 1, 2012 - 4:50pm.

Bought our first one in 99, put down only 10%, with PMI and 7% 5/1 ARM mortgage never saw my salary again for the next two years until the rate started to fall in 2001. Good thing, the wife also works. Almost upgraded in 2004, but got out-bid which was a real blessing. After the high-end market in Carlsbad finally fell, we bought our dream home in 2010 while keeping our 1st one as rental. Funny thing is that we actually looked at the community we are in now back in 99 but thought there's no way in hell we'd be able to afford it. Who'd know 10 years later, we was able to buy one at almost the same price the previous owner paid in 2000. Looks like many people here have taken advantage of the low prices in the last few years and became home owners and/or upgraded. Congrats.

Submitted by matula on August 1, 2012 - 9:25pm.

Bought in 2001 then bought another move up house in 2012. Made the first house as a rental.

Submitted by exsdgal on August 1, 2012 - 9:41pm.

sdrealtor wrote:
Some great stories! Piggs Rock!

exsdgal
Did you keep the 98 house or sell it? if so when?

We kept our 98 house. We started with a 30 yr fixed (were quite naive about all the housing stuff, that we signed up for a loan with a 5yr prepayment penalty). On 5yr+1day refi'ed to a 15 yr. For now we have decided to keep the house and become a Pigglord :-) To be honest the expenses were not terrible, so it was an easy decision.

Submitted by FormerSanDiegan on August 2, 2012 - 8:56am.

1. Bought house #1 in 1996 (genius timing). Clairmemont. $160K. $8 k down. 8.25%. Family from out of area thought I was crazy for paying $160K for a 1200 SF stucco box.

2. Bought house #2 in 2000. Even smaller than house #1. rented out house #1.

3. Sold house #1 in 2002 (while still qualifying for tax-free gain as primary). Remodeled house #2

4. Bought house #3 in 2002 as rental property, partly with poroceeds from house #1

5. Sold house #2 in 2005 and left San Diego :(
(Hooray for selling at the peak)

6. Bought house #4 in 2005 out of the area.
(oops. Three out of 4 ain't bad)

Found Piggington in late 2005.

Still own #2 and #4.

Submitted by skerzz on August 3, 2012 - 12:08pm.

Inked the purchase contract on our first SFR (first RE purchase as well) in mid-May of 2009. Purchased from the Bank as a REO. Home value is flat to slightly up since then. Factor in the $8k tax credit and tax benefits and I am doing OK -- especially when considering it was a 3.5% down FHA deal.

However, I did have to sell a large block of Sturm Ruger Stock (RGR) to fund the down payment when it was trading at $11-12 per share. I would have been better off holding the stock and renting considering RGR is now trading around $46 per share.

Submitted by montana on August 3, 2012 - 2:11pm.

We bought our first home in December 2010 with 20% down and a rate of 4.25%, appraisal came in exactly at our offer price, shocking. Refinanced in January 2012 at 4.00% with an appraisal up 2.5% (neighborhood has really held steady). Just locked in another refinance at 3.75%, no cost!

Submitted by sdrealtor on August 3, 2012 - 3:07pm.

So in less than 2 years your financing costs dropped about 12% while your value is up 2.5%. Sounds like another a winner.

Submitted by earlyretirement on August 12, 2012 - 10:04am.

I bought my first house in 1998 and sold it in 2004. I actually moved out of the USA in 2003. I figured that things were getting out of control when I saw all the no doc mortgages being written. I knew it was just a matter of time when the whole thing would come crashing down.

I rented and waited until summer of 2011 to buy my primary home and very happy with that decision. I don't really care what prices do in the short-term. I figure I came close enough to a bottom.

We're holding for the long-term until our kids are out of high school (our oldest is only 4 years old). I'm very confident that prices will surpass peak prices in the distant future. But that isn't why I purchased.

I purchased as a home to raise my kids in. Rental rates of high end properties in good school districts are quite expensive in the area.

I don't regret buying when I did for a second. We absolutely love our house..

Submitted by temeculaguy on August 13, 2012 - 12:02am.

I bought at the tail end of 2008, moved around Christmas. But in my area that was the bottom as I look back. "Bottom's" can be regional and they can last more than a year. However, I have refi'd twice because 6.5 was the going rate at the time of purchase, sitting at 4.5 today and I never thought that would ever get lower (which it has).

I'm up about 30-35%, but after money invested in repairs, more like 25%. Confirmed by appraisal for refi and the removal of PMI (which banks hate doing). Also my friend just closed escrow in my hood and was happy to pay 30% more than I did for a comparable property, because he still did pretty good.

I never did get the rental I had planned on, I blame the kids, the state, my hedonistic tastes and Bavarian Motor Works. The massive increases in tuition are far outpacing inflation and the investments I made in anticipation for that tuition, but I digress.

In the end, I'm happy, my housing costs are 40% less than today's rent for a house like this, are fixed and tax deductible. I've made some terrible financial and non financial decisions in my life, buying this house in December of 2008 was not one of them.

Submitted by bobby on August 13, 2012 - 12:32am.

not sure if the "wise pig" is applicable to buying in 2012. Prices have gone insane again. Only hind sight will prove this.
FWIW, We will likely buy in 2012...

Submitted by CA renter on August 13, 2012 - 3:34am.

earlyretirement wrote:
I bought my first house in 1998 and sold it in 2004. I actually moved out of the USA in 2003. I figured that things were getting out of control when I saw all the no doc mortgages being written. I knew it was just a matter of time when the whole thing would come crashing down.

I rented and waited until summer of 2011 to buy my primary home and very happy with that decision. I don't really care what prices do in the short-term. I figure I came close enough to a bottom.

We're holding for the long-term until our kids are out of high school (our oldest is only 4 years old). I'm very confident that prices will surpass peak prices in the distant future. But that isn't why I purchased.

I purchased as a home to raise my kids in. Rental rates of high end properties in good school districts are quite expensive in the area.

I don't regret buying when I did for a second. We absolutely love our house..

Funny, this timeline is exactly the same as ours, and the reasoning is the same, too -- we want to raise our kids in a home that we love. Rents in good areas are high, and prices/interest rates got to a level in 2011 where rent/PITI payments were close enough to be compelling. Like you, we don't regret buying our house for one second.

Nice job, ER! :)

Submitted by barnaby33 on August 13, 2012 - 10:41am.

Ok, I'll admit it, I just bought a place. Eeek!

Submitted by earlyretirement on August 13, 2012 - 12:37pm.

CA renter wrote:
earlyretirement wrote:
I bought my first house in 1998 and sold it in 2004. I actually moved out of the USA in 2003. I figured that things were getting out of control when I saw all the no doc mortgages being written. I knew it was just a matter of time when the whole thing would come crashing down.

I rented and waited until summer of 2011 to buy my primary home and very happy with that decision. I don't really care what prices do in the short-term. I figure I came close enough to a bottom.

We're holding for the long-term until our kids are out of high school (our oldest is only 4 years old). I'm very confident that prices will surpass peak prices in the distant future. But that isn't why I purchased.

I purchased as a home to raise my kids in. Rental rates of high end properties in good school districts are quite expensive in the area.

I don't regret buying when I did for a second. We absolutely love our house..

Funny, this timeline is exactly the same as ours, and the reasoning is the same, too -- we want to raise our kids in a home that we love. Rents in good areas are high, and prices/interest rates got to a level in 2011 where rent/PITI payments were close enough to be compelling. Like you, we don't regret buying our house for one second.

Nice job, ER! :)

Hey CA Renter,

I think you did great. Absolutely if you have kids and you know you will stay in the area, it just doesn't make sense not to buy at 2011 levels.

One thing I've learned is you will NEVER always catch the absolute highs and the absolute lows. People can pretend to always be able to catch the absolute highs or lows but in reality it's mostly not true.

In a place like San Diego, especially North County, rents are always going to remain high. I just don't see them getting cheaper in good school districts.

For many years you had these bulls that thought that home prices would always go up. But at the other end of the spectrum now there are housing bears that think prices will fall forever and that just isn't the case.

The biggest problem for eternal renters is that the vast majority of them don't save enough from renting so that when they are older and retired, they don't have those funds to fall back on. Plus they don't have a place to live.

Buying is a sort of forced savings program for many people. I certainly wouldn't want to head into retirement not having a place that I owned free and clear.

I'm not saying home ownership is for everyone but it certainly makes sense for many people.

But like always the key thing is buying a house that you will love and also one that you can comfortably afford.

The interest rates now are so so cheap now. And rental prices in good areas are so expensive.... buying is going to make sense for more people.

Congrats on your new house! You'll have to change your screen name to "CA Owner" Ha, ha.

Submitted by sdsurfer on August 13, 2012 - 12:46pm.

My fiancee and I bought a place in Encinitas in November of 2010. It showed terribly as it had been a rental for 30 years and with only 1170 sq. ft. they somehow had it situated as a duplex with a shared kitchen at the time. We were piggy-backing on a 2 o'clock showing and they were already leaving at 2:01. I'd have to say that my girls ability to envision the home as what it "could" be was amazing. I knew it, but the fact that she saw it too was unreal and encouraging for the life ahead.

Moved in and got to work right away. We managed to get the place into somewhat decent shape for us to get married in the backyard with over 130 people September of last year. We had to pick what was most important for the wedding from the beginning. I made way too many trips to the dump just hacking away at bushes, cacti, overgrown ? trees, etc. just clearing everything. Redid the driveway with pavers from the mixed media ashphalt/concrete/dirt it was, built retaining walls, a bitchen ipe deck that goes half way around the house. We literally painted the house the week of the wedding and I was digging a ditch for drainage the morning of my wedding, but we pulled it off. Got married right down the street at our favorite Encinitas viewpoint and went back to our home for the party....uhh I mean reception.

Still a work in progress today, but we are loving it. Actually, just finished the master bathroom with slate walls for that spa feeling she wanted...although it's still a small bathroom.

She's 6 months pregnant now so I'm feeling the pressure again to get a couple organizational things done before the little one gets here.

I love the whole experience of it all and sometimes think that I'm too fortunate to be where I am, but I'm definitely grateful for it. We live about a minute drive or a 20 minute walk from one of our favorite beaches, have a mortgage that is easily within most people's means in a neighborhood filled with great people. Many of whom have been living in their homes for 30+ years.
The more neighbors I meet the more I come to understand why they never left and I could see us being just like them 30 years from now.

Stoked!!

Submitted by CA renter on August 13, 2012 - 6:26pm.

sdsurfer wrote:
My fiancee and I bought a place in Encinitas in November of 2010. It showed terribly as it had been a rental for 30 years and with only 1170 sq. ft. they somehow had it situated as a duplex with a shared kitchen at the time. We were piggy-backing on a 2 o'clock showing and they were already leaving at 2:01. I'd have to say that my girls ability to envision the home as what it "could" be was amazing. I knew it, but the fact that she saw it too was unreal and encouraging for the life ahead.

Moved in and got to work right away. We managed to get the place into somewhat decent shape for us to get married in the backyard with over 130 people September of last year. We had to pick what was most important for the wedding from the beginning. I made way too many trips to the dump just hacking away at bushes, cacti, overgrown ? trees, etc. just clearing everything. Redid the driveway with pavers from the mixed media ashphalt/concrete/dirt it was, built retaining walls, a bitchen ipe deck that goes half way around the house. We literally painted the house the week of the wedding and I was digging a ditch for drainage the morning of my wedding, but we pulled it off. Got married right down the street at our favorite Encinitas viewpoint and went back to our home for the party....uhh I mean reception.

Still a work in progress today, but we are loving it. Actually, just finished the master bathroom with slate walls for that spa feeling she wanted...although it's still a small bathroom.

She's 6 months pregnant now so I'm feeling the pressure again to get a couple organizational things done before the little one gets here.

I love the whole experience of it all and sometimes think that I'm too fortunate to be where I am, but I'm definitely grateful for it. We live about a minute drive or a 20 minute walk from one of our favorite beaches, have a mortgage that is easily within most people's means in a neighborhood filled with great people. Many of whom have been living in their homes for 30+ years.
The more neighbors I meet the more I come to understand why they never left and I could see us being just like them 30 years from now.

Stoked!!

What a fantastic story, sdsurfer! :)

Congratulations on the house, the wife (she sounds awesome), and the upcoming birth of your new baby! What a wonderful series of events!

Submitted by CA renter on August 13, 2012 - 6:34pm.

earlyretirement,

Could not agree more with everything in your post. While I think prices can indeed go down in the future, the cost/benefit analysis of renting for x number of years in order to save y on the price of a new house isn't necessarily convincing at this point in time. If we could know whether or not interest rates were going up soon, that would help, but if the Fed (and everything else going on in the world) keeps rates this low for an extended period of time, renting becomes less and less attractive going forward...especially with how rents are increasing.

As you've noted, the #1 benefit of owning over renting (IMHO) is the fact that you can own your home outright when you're retired. We have a family friend who is now in his 90s, wasn't planning on living that long, and has been renting for the past ~38 years. Everyone is chipping in to help support him, and that's the only way he's able to make it. If he had no support network, he'd be on the streets. Deciding to rent instead of buy is one of his greatest regrets in life.

Hope you enjoy your new home for many wonderful years to come! :)

Submitted by sdsurfer on August 14, 2012 - 3:48pm.

Thanks CA renter!

I think we are pretty lucky sometimes, but then I also think that most people are fortunate too if they take the time to realize it.

Submitted by UCGal on August 16, 2012 - 9:28am.

barnaby33 wrote:
Ok, I'll admit it, I just bought a place. Eeek!

Congrats!
Does it have a proper wine cellar? And when's the party for the piggs? LOL

sdsurfer wrote:

She's 6 months pregnant now so I'm feeling the pressure again to get a couple organizational things done before the little one gets here.

Congrats on the house, wedding, and upcoming parenthood.

Submitted by SD Transplant on August 16, 2012 - 4:55pm.

Thanks for the great stories everyone. Based on the feedback(70 respondents) we have 66 home owners.Hence,the piggs are ready for OT subjects, and might explain that some long timers(jpinpb, TG) have bearly posted in a while.......should I even dare say "the RE bottom is passed us"...cheers and enjoy your new to you pads

Submitted by CA renter on August 16, 2012 - 9:03pm.

barnaby33 wrote:
Ok, I'll admit it, I just bought a place. Eeek!

Okay, I missed this until UCGal reposted.

Did you really buy a house, barnaby? If so, congratulations, and welcome to the dark side! :)

It's funny to see how many long-timers have jumped ship.

Submitted by spdrun on August 16, 2012 - 9:18pm.

As long as PITI < Possible Rent, who cares where/when the bottom is?

The point is to (a) save money vs renting and (b) have a place that you can rent out for a profit if you decide to bug out and travel for a few months.

Submitted by scaredyclassic on August 16, 2012 - 10:47pm.

these people had a sign near my place...if you're looking to vacation in temecula wine country, they look like the place...

http://www.temeculavacationrentals.com/v...

Submitted by montana on July 8, 2013 - 9:47pm.

Just closed my third refinance in two years with HLS at 3.50%. House next door sold two months ago almost 20% higher than our short sale purchase 2.5 years ago. Thanks again to HLS for the great service!