Video: Home Loan Rates vs Home Prices - The Bottom Line

Sorry, your argument does not work. Patient buyers have figured this out and are simply waiting for further price drops, until prices are in line with fundamentals of rent/mortgage and income/price. ...We are currently experiencing far more than 3% depreciation. In fact, a good negotiator should be able to get 3% off the purchase price even without further market depreciation. ...Sale price impacts everything that is percentage based in a settlement, RE agent commission, mortgage broker fees, transfer tax, etc. Purchasing at a lower price reduces settlement charges. Now you respond that the buyer does not pay RE commission. In truth, the buyer's loan may be the only money brought to settlement. They are borrowing (and paying interest on) the money that pays for everything. ...Sale price impacts property tax. Property tax on a $450K purchase is less than that of a $500K purchase. ...Interest rates always fluctuate. A house purchased at a lower price but higher interest rate can be refinanced when rates go down. This is HUGE. The easiest and most frequently utilized way to lower monthly payment is refi at a lower rate. Of course this is assuming an initial down payment, so there is equity to allow a refi, which brings me to my last argument. ...Save for a bigger down payment on that further depreciated price, pay reduced or maybe no PMI. Have a great day.

Thank you for your polite reply. I just looked up Redondo Beach on Redfin. It looks like a lovely area. Certainly more tony than anything I could afford.

I disagree with your assertion about staunching depreciation in Redondo Beach. I do not want to hijack your thread by posting the stats. You may wish to look at them when you have an opportunity, to see what the public is seeing. 

Perhaps you will interpret the data differently than I do. You make your living in this industry. I do not.