There is enormous opportunity and it is growing daily!  These are the times that actually excite me....it is the times that people can create enormous real estate wealth..and these times do not come around very often (you will see these types of times-real estate cycle down maybe 2 time during your adult life time).  For the past 3 years, I have been advising my clients to save up as much cash as possible...cash will be king.  We are already seeing this with the financial crisis that is already occurring in broad markets.

The outlook in the real estate market is opportunity opportunity opportunity. Here is some background info to think about:  In August 2007, the lending markets completely froze up, including the US market as well as foreign markets.  The US government pumped 42 billion into the market in just one day alone, followed by billions on a daily basis for several weeks.  Prior to this event, the last time the US gov pumped that amount of cash into the system was after 9/11, prior to that was the 1978 gas crisis, prior to that was the depression. There was a good old fashion bank run at several banks in Europe.(this time bank runs are electronic and very fast). There were also several thousand people standing literally outside the world headquarters of Countrywide.  More recently, the US government announced this week that it will pump 200 billion more into the financial markets.  Since the financial markets, especially the liquidity markets began the rapid contraction in August 2007, the US government has pumped close to 1 trillion into the financial market by one method or another. Interestingly...conservative analysts have been estimating that the  write-off of bad mortgages will be around 1 trillion.  So far, the liquidity infusions by the US Government has had little if no effect on "oiling" the liquidity markets and sources of loan funding.

HERE IS THE MATH:

For well over 1.5 years,  I keep telling people we have only seen "the storm clouds" forming...we have not seen the storm yet.  The turmoil in the financial and real estate markets that you see so far has been caused by ONLY 7.5% of the foreclosures/defaults that will most likely default.  WOW...that leaves 92.5% more to go. The largest chunk of loan resets are scheduled for March 2008, June 2008, and August 2008.  Once these loans reset, most will find that their loan payment will go up immediately 60% to 80% on average. It will then take approx 2-4 months before their savings are exhausted before they stop making payments.  Banks typically wait 3 months on non-payment before filing a notice of default. In CA, by code, the banks then have to wait 90 days more from when the notice of default is files before a notice of sale can be filed. Then the bank needs to wait an additional 21 days before conducting a trust deed sale.  Therefore, the time-line shows that the full impact of the loan defaults will not be felt by the real estate market until 1^stqrt 2009 to end of 2009. There will then be a flood of bank owned properties put on the market which will put enormous downward pressure on prices.  It will then take several years to clear the inventory.  There can not be a broad recovery until the inventory is cleared...say 2011-2012.

 72% of my clients are other Realtors, Brokers, Appraisers, and Developers. 

Please click here to learn more why buyers hire me! 

 Best,

Ari Schauder, Broker, Realtor®
Epic One Real Estate
Cell 619 200-5969      Toll Free Fax  (866) 629-5857

CLICK HERE FOR FEATURED PROPERTIES

http://www.epiconerealestate.com/

Member of the San Diego Multiple Listing Service & San Diego Association of Realtors®
Member of the Orange County Multiple Listing Service and Orange County(SOCAL) Association of Realtors®

UPDATED April 5, 2008: SOLD FOR $1,410,000! 

SAVE OVER 200K FROM PREVIOUS LISTING ON THIS HOME!!!!   7505 COLLINS RANCH TERRACE, SAN DIEGO, CA 92130

PRESTINE AND LUXURIOUS IN GATED COMMUNITY IN CARMLE VALLEY 

INVESTOR OWNED FORECLOSURE-NOT A SHORT SALE! FULLY UPGRADED,UPGRADED,UPGRADED!!! Resort Living in the Prestigious Gated Community of Collins Ranch in Carmel Valley. Culinary Masterpiece, Office/Optional 5th bedroom with full bath downstairs, ONE OF THE BEST AVAILABLE HOUSES IN CARMEL VALLEY

FULLY UPGRADED IN COLLINS RANCH!!! Prestigious Gated Community in Carmel Valley, adjacent to Fairbanks Highlands & Rancho Santa Fe. No expense spared on this UPGRADED, UPGRADED, UPGRADED estate home.This spectacular executive home is appointed with flooring that includes Terra Walnut Wood,Santiago Marble,Durango Travertine, and highly upgraded Fabrica-Milan Carpets. Prepare to be awed by the culinary masterpiece featuring Copper Canyon Slab Granite with w/inlaid tumble mrbl stone backsplash,Sub Zero fridge,Dual Viking ovens,6 burner Viking stove with grill,Viking warming drawer, KitchenAid dishwasher,trash compactor,dual sinks,& granite butler`s serving area w/Sub-Zero wine fridge. Wrought iron `Birdcage` staircase leads the way upstairs to enjoy romantic nights in the luxuriously large master bedroom suite with lrg balcony,his/her `Breccia Damascata` marble vanities, and oversized marble & glass enclosed shower with dual shower heads. Professional landscaping with every detail, custom hardscape w/Shenandoah flagstone,courtyard with fountain,Dramatic outdoor fireplace,built-in Dacor BBQ, & custom driveway. This romantic home with panoramic views sits prominently on a commanding oversize culdesac location, boasting an enormous full size Canary Palm. Don`t miss the large four car garage w/epoxy flr,huge laundry room, dual zoned air conditioning, 5 sets of Anderson French Doors, Upgraded Ustec iLan800 Cat-5 Network wiring,surround sound,security system, & warm custom paint. The low homeowners fee includes the spectacular gated entry, resort style sparkling pool, spa, outdoor fireplace, & barbecue . Built in 2001, and meticulously decorated inside & out, this home is as close to perfection as it gets!! LOW LOW mello roos. Buyer to verify all info before COE.

CONTACT ARI SCHAUDER 619 200-5969