Good morning to all! As many of you know, I was a bear on the housing market starting at the end of 2005, and I sold my San Luis Obispo real estate holdings by the middle of 2006. What did I see at this time? A huge bubble driven by speculation, cheap money going to non credit worthy borrowers, and the true believers that thought "housing will never go down". These true believers followed the investor psychology which is much more "herd mentality" than logical. You see this at marker tops. However, at market bottoms you see the "herd mentality" that prices are going down forever, and housing is like the plague something to stay far away from. This the time to buy!
So what is the investor mindset now! Stay away it's going down forever! This is one of the "green shoots" that I look for to signal us it's time to buy. I will give a brief list of the "green shots" I have seen telling me to buy!
1. Interest rates at 3.75% for 30 year loans with only 3.5% down.
2. Payments for homes are below the cost of rent, and with mortgage deductability for taxes much lower.
3. Inventories are decreasing!
4. Investors are buying up properties to rent out.
5. There is very little building, and in some areas none, being done to fill future demand.
6. ARM resets are slowing down drastically in the 2nd half of 2012. This has been one of the triggers for home owners to walk away from their homes.
7. Buyer traffic has increased by 50% on my web page www.myslohomebuyer.com in the last 2 months.
8. Moderate priced homes are receiving numerous offers, and in some cases selling for more than asking price.
9. Jim Cramer came out on CNBC's "Squack on the Street" and said housing has bottomed. I just heard him again reiterate this today.
10. I have a feeling that we are approaching one of those "buying opportunities of a life time". Just think about it! You can go to a place like Arizona and buy a 4 bedroom 3 bath home for $120,000! Call it a premonition or a "gut feeling".
11. Homes are selling far below replacement costs.
12. Inflation is coming back! It's a great time to buy before inflation really hits, then pay it back with depreciated dollars. I will write a futrure blog about this in the next two days telling a story about my father and mother's $160 dollar a month mortgage, and the apartment he built in the basement.
Stay tune for more spottings of "green shoots", and go out and buy real estate. Remember Will Roger's famous statement, "Buy land! God's not making anymore of it!"
Sell the below listing at my web site- http://www.myslohomefinder.com/listing/mlsid/463/propertyid/183941/
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