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Is it time to come off of the sidelines and buy real estate now?

By
Real Estate Agent with Marin Realty Experts

Warren Buffet, the "Oracle of Omaha" in an interview with CNBC says that single family homes are now cheap and attractive investments that are "probably as an attractive an investment as you can make now." (See the complete story at  http://www.ibtimes.com/articles/306749/20120229/real-estate-forecast-2012-warren-buffett.htm.)

And Donald Trump in a recent interview on CNBC said "Housing is one of the great investments right now. I tell people all the time when they come up to me, they say, "What should I do, Mr. Trump?" I say go buy a house,"

I'm obviously not in  the same category as these 2 investment mogels, but I too, feel that now is an excellent time to buy. In fact, I recently purchased a duplex for my own portfolio in the San Francisco Bay Area and it is pumping out cash. I have also been making offers for clients in Marin and Sonoma counties and am finding that, at least for lower priced homes, the days of multiple offers and sales prices over the asking price are back.

Sentiment among those I talk to is that we may have hit bottom or will soon do so. In about 2 weeks I will have the figures from my 1st quarter Marin pricing analysis, so stay tuned to see if this sentiment is reflected in closed sale prices.

Rob Spinosa
US Bank - Larkspur, CA
Mortgage Loan Originator, Marin County

The most encouraging thing about what we're seeing locally (and I'm seeing this in a lot of coastal CA) is that buyer and seller are confirming and creating the market price of real estate.  We are no longer paralyzed by the threat of a free fall in values.  We are less concerned that properties won't appraise at the asking price.  Yes, there are still challenges, but the market has adjusted quite well to its new reality and people appear to have gotten back to the business of making things happen. 

Finally, I think it's a positive sign (and a law of the universe) that the "wait and see" attitude is again getting bested by those who are taking the bull by the horns, right here and right now.

Mar 22, 2012 11:07 PM