What's Going to Happen in Real Estate?

Will the national banking crises and Obama being president mean for real estate?

I think two things are going to happen fairly quickly: the banking crises is going to get worse, maybe a lot worse within the next 90 days.
And I think the Obama team will take dramatic action: take over the banks, divide them into good and bad sections (taking the bad loans, etc.) and then infuse the good sections with more money so they will begin loaning money again.
The result for real estate will be that we will see the bottom of the market soon after this happens, my guess is sometime in the summer.
So if you have money to buy now, do so because we are very near the bottom and the house you want should be the house you buy. Remember that if you are going to stay in your home for several years, then buying for a few dollars less will make little if any difference, because the payments you will pay now will be paying off the loan.
What do you think?

Summer in San Diego

With summer beginning with a heat wave, what is in store for buying a house?

Three groups are watching the market carefully: those who want a real bargin, even a 'steal'; those who don't need to buy right now but who would if they thought the market were at bottom; and those who need to by now because of a job, kids, schools, money in the bank.

I doubt that we are at bottom, bottom. There is just too much uncertainty in the world. But if you intend to stay in the home you buy for at least a few years, you are making a mistake not to buy now.
Think about it: you would have the tax savings that interest and taxes afford you if you buy now. You would be paying down your mortgage from the beginning, thus building potential equity. And the list goes on.

I know of some terrific bargins in this market, and some of them are not going any lower. The sellers just won't take any less.

Let me know what you think.

How Do I Find the Right House among the Choices

Buyer's Market -- Excellent Values
San Diego real estate has made a dramatic move toward a buyer's maket because buyers now have more houses and condos to choose from, loans are still at historic lows (although up some from a year ago), and sellers who need to sell.

The County has over 22,000 units for sale. That compares to 4000 just a couple of years back. Also, fewer are going into escrow (offers are made and accepted) than a year ago.

The net of those two trends is that buyers have more to choose from.

A good agent (he said humbly) can save TIME, MONEY, and HASSELS in this market.

Should I Wait to Buy?

Frankly, you should place your personal needs and dreams ahead of trying to time the market. Would a new home improve your home life? Make you feel better? Help you feel settled? Or raise so much fear that you couldn't be happy? There is a lot more to owning a home than buying at the lowest price.

The questions "Should we buy now? Why not wait for prices to fall?" are legitimate. The main consideration in buying is whether or not you intend to stay 5 years or more. If you will be in your new home for any length of time, then trying to time the market is almost irrelevant since the overall trend in San Diego real estate is toward growth.

Short term -- a year or so -- prices can go down or up a modest amount.

But long term -- they have been going up for nearly a 100 years!ALSO, consider that if interest rates increase, you will actually pay more IN THE LONG RUN.



Call me to talk about your dreams: 619-337-3119