Under contract for a 2,700 sqft home in LA. I think the price is OK: it’s not rock bottom and definitely not overpriced either as similar sized homes in the area have sold for MUCH more. The price is decent because it needs a bit of work on the interior, and I’m perfectly fine getting that done. OK time to buy now? Ideally I won’t have to sell this one to buy another home anyway, so in theory the hold period can be indefinite. What do you think about the impending foreclosures due to COVID?

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No one knows. My opinion is that rental and for sale prices will go down. The government and public will not get this virus under control, and we will be in a state of lockdown until there’s a viable vaccine. Hundreds of thousands of small business will close permanently, jobs will be lost, and there will be a lot of foreclosures. I also think a lot of workers are going to leave the city once the extra $600 unemployment stops at the end of the month.
Anecdotal, by my hair stylist was almost in tears on Monday when she found out she was being shut down again. She said once unemployment is up, she doesn’t know how she’s going to pay her rent and may have to move back in with family in Texas.

Foreclosures are always a mess. You’d be waiting for them to happen and then waiting 1-2 years to close on one. I would not wait for that if you like this house.

The government will extend unemployment benefits. Maybe not the extra $600 or they will lower the income cap but in 2009 unemployment was extended 52-78 weeks.

Lol sure D1 but you can’t just force businesses to open and hire. There are still 15 million unemployed. We’re not gonna let them become homeless.

Very difficult to know what’s going to happen.

Right now home prices are staying high in Southern California due to low inventory. There are a few things that could cause inventory to increase, leading to decreased prices: 1) a lot of people decide that they no longer need to live in expensive LA because they can work remotely so they move to Arizona or Texas or wherever, 2) people lose their jobs and decide to sell their homes and 3) people lose their jobs, stop paying their mortgages and end up foreclosed on.

The first one could certainly happen, though maybe not a mass exodus because it’s a scary time to put your house on the market (lots of potentially infected strangers coming in and out). The second could happen but many of the lower wage jobs that are having the highest numbers of layoffs pay so little that those folks couldn’t afford to buy. The third definitely could happen but it will take a very long time for the legal proceedings. There are still houses in Orange County that were foreclosed on in 2009-2011 that banks own and haven’t sold.

I say this as someone probably buying a house in LA or OC in the next 6 months or so. I keep waffling on whether this is a bad time, but I think what we’re most likely going to see is home values stagnating as opposed to plummeting. Very hard to know though!

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