I work with Home Buyers and Home Sellers in East Contra Costa County. I have a client I have been working with for some time looking for a Bank Owned Home in Brentwood. He thinks he has found a house he wants to put an offer in on, but wants to see it one more time today.
But he then e-mailed me about an article he read in the paper, quoting it extensively. Basically it was regarding the number of homes that have been foreclosed on, but are not on the market. A key point was that the banks are not putting everything on the market at this time so that the home prices will not collapse further. This is probably true. But I wanted to share my response to him with you:
There is probably some truth to this article. But it only focuses on one piece of the puzzle and is Newspaper gloom and doom. No one wants to read a head line that promises good news. Other factors to consider that I do not have the answer for include:
* Will we see inflation (I think so!)?
* Can interest rates remain this low, especially with inflation?
* Will the government bailout effectively stop or drastically reduce future foreclosures? I have been told the major banks are holding off on foreclosures at this time waiting to see how the bailout will work.
* What is the real shadow inventory and how fast will they put it out? If they put it out slow enough in an inflation economy there may not be more price drops.
* Where is your money safest from economic instability. The stock market? the banks? Under a mattress? Property?
I do not know the answer to any of this and am constantly concerned about the economy. I would buy if I could get a loan. (Being Self Employed and with 2 low earning years behind me I am having trouble getting an FHA loan to buy a house big enough for a family of 7, even though the mortgage may be cheaper than my rent!) My feeling is property is the only tangible asset that will be here when this all sorts out.
If I could predict the future I would have bought Microsoft 20 years ago and be retired, but I believe the above is accurate advise. On the flip side I find that very little of what is said in the main stream press is accurate or comes to pass.
If you are a First Time Buyer or an Investor looking for a home in Brentwood, Antioch, Oakley, Discovery Bay, Pittsburg, East Contra Costa County, all of Contra Costa County, or the East Bay, please contact me. I am here to help Home Buyers and Home Sellers.
Comments (2)Subscribe to CommentsComment