January 1, 2008
The race to the bottom had begun, and house prices were dropping in thousands every week, even in Irvine. On one side, there was Irvine Renter writing blogs with titles like “Speculation or Investment”, profiling the properties with an asking price totally out of tune with the market, and graphs that showed the shadow inventory as well as the current REOs with no sign of bottoming till 2012. It was doom’s day. Great Housing Bubble was bursting. On the other side, there were Realtors, convincing you that this was the bottom, and Irvine will never see these prices again. Opportunity was knocking, according to them, and you would be a fool not to pick up the keys to open that door.
Amidst all this certainty, an impending recession and growing unemployment, there were a lot of houses on the market, and there were buyers and sellers, including us. We decided to catch the falling knife, and buy a house.
All we wanted was a small three bedroom/ two bathroom house with an attached garage in an excellent school district. We saw a lot of houses, and wrote a lot of offers. Most of them were rejected. Some got better offers than what we quoted, and some just waited for the right price. Some were short sales that took forever to materialize. Today I will profile a few houses that we had put offers on, with the price that we had offered.Read the rest of this entry »