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Are you kind of a buyer, who is currently sitting on the fence waiting for "housing prices to hit rock bottom"?

By Victoria Wells

Real Estate Agent with Bradley Luxury Real Estate

December 25, 2007 05:38 PM

It's time for a reality check - in relation to Marin County Real Estate.

If you are one of the potential home buyers who are currently sitting on the fence waiting for "housing prices to hit rock bottom," I am here to tell you that now may be a good time to get into the market - before the opportunity passes you by. Here are the facts:

The Term "Rock Bottom" in Relation to California Real Estate Probably Doesn't Exist

In the last 40 years, the real estate market in California has seen remarkable growth in terms of the median cost of a single-family home. According to the California Association of Realtors, since 1970 the real estate market in California has only dropped seven times, six times under 3.6% and only once at 4.5%

The Long-Term Outlook for Housing is Bullish

As we enter into an election year, traditionally a time when the economy heats up, we do so with a job market that is hot, and during a time when buyers have more choices than ever. What is driving this? The upcoming growth in new households puts estimates for new-home demand at about 19.5 million units from 2005 to 2014, surpassing the 18.1 million units added between 1995 and 2004.

A Unique Window of Opportunity

The reality is that the current housing market offers a unique opportunity for confident buyers looking to make long term investments. For the first time in many years, home buyers have the opportunity to steer the ship and navigate the waters of the Northern California real estate market on their own terms. Mortgage rates are historically low, inventory is high and financing is readily available for qualified borrowers.

I am providing you with this information so that you can make an informed decision about the current market. In the last 15 years we've seen very few opportunities in which buyers can prevail and now truly is the time. If you'd like to discuss your opportunities in relation to the current real estate market, please contact me today.

HAPPY NEW YEAR! MAKE IT A GOOD ONE!

Victoria Wells

Http://www.marinbesthomes.com

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Jennifer Fivelsdal

JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY

Mid Hudson Valley real estate connection

Victoria - People who are waiting for rock bottom or as some call it the chance to make a steal might find that they missed the boat.

Dec 25, 2007 05:52 PM

Mark Horan

Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL

"The Resident Chef" - Resident Team Realty LLC &

Victoria- I agree, I think we are already at rock bottom or just past it. The time to buy is now.

Dec 25, 2007 06:03 PM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

The low interest rates also make it desirable for buyers. In our state unemployment is really low, which has an impact.

Dec 25, 2007 06:10 PM

TeamCHI - Complete Home Inspections, Inc.

Complete Home Inspections, Inc. - Brentwood, TN

Home Inspectons - Nashville, TN area - 615.661.029

Victoria - There are many people out there who are like my wife - always looking for a deal, which is fine! However; there are several of them who, just like her, need to make a decision about making a decision. I feel that many people are very indecisive. By the time they DO make up their minds, the opportunity is gone. ~~ Just a point ponder.

Dec 25, 2007 07:28 PM

Find a Notary Public needAnotary

QEC Internet Services - Long Beach, CA

The problem in California is affordability. Many Realtors do not understand this fact. Pricing can be at an all time low. Wages can be at an all time high and there is still a problem. That is why subprime loans were so popular.

Did of do you realize since the run up in housing prices beginning in the 1970’s that a borrower who today earns $100,000 cannot conventionally qualify fro a median price home? Those are the facts we have to deal with in the California.

The right time to buy is anytime. In all markets there are good buys. In all markets there are dawgs. California needs to be declared a high cost state like Alaska and Hawaii to get more borrowers to qualify for loans that both Fannie and Freddie can buy on the secondary market.

I read blog after blog on California that preach about the economic climate. The economic climate and timing don’t mean a hill of beans if folks can’t afford the propereties. Until the next cycle to (like subprime loans) California is stuck for the middle-income families. High-end buyers and high-end properties that is a completely different market.

Run the number on your trust dusty calculator and you can instantly see the problem. I’ve previously posted a qualification scenario, but can’t find it at the moment.

This Wal-mart effect will be the next trend hurting Californians more significantly than other areas. We currently don’t figure health care coverage in qualifying a loan. But, we do know employers are being required to burden more of their own health care costs. This will have a direct effect upon many borrower’s maintaining their residences after the loan is closed, which in some cases may create a crisis much like the melt-down that currently exist for some borrowers today.

The bright news is that someone somewhere right now is figuring on how to make a buck out of this mess and a loan product of some type will magically appear to give some fortunate borrowers hope. That I am confident of!

Dec 25, 2007 08:02 PM

Renee Stengel

Houlihan Lawrence, Associate Broker - Katonah, NY

Westchester County

You can't time the stock market or the housing market. We may not have it bottom but then we might have.

Happy holiday.

Dec 25, 2007 09:21 PM

Kevin McGrath

Long & Foster Real Estate Companies- Fredericksburg/Spotsylvania - Fredericksburg, VA

Long & Foster Real Estate Companies

I heard a great quote - and I honestly can not remember where - I think it might have been from Patricia Kennedy.

In regard to buyers waiting for the market to turn, "you will know the market has turned when someone else buys the house you loved."

To me, this says it all.

(Again, not sure where I heard it, and I may have paraphrased)

Dec 25, 2007 11:19 PM

Terry & Bonnie Westbrook

Westbrook Realty Broker-Owner - Grand Rapids, MI

Westbrook Realty - Grand Rapids Forest Hills MI Re

It is difficult to time the market but for a buyer the timing could not be much better.

Dec 25, 2007 11:41 PM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Good advice. Buyer prospects who are qualified should think seriously about taking advantage of this market. Inventory is plentiful, sellers are willing to negotiate and lenders are rolling out the red carpet to qualified buyers.

Dec 26, 2007 12:47 AM

Steve Glose

Keller Williams Legacy - Orlando, FL

TRC, CIPS, 407-616-7286, Orlando Real Estate, Orla

I think we will see buyers start to move as we get into 2008. There is only so long that people will wait.

Dec 26, 2007 10:48 AM

Kathy McGraw

CELLing Realty - White Water, CA

Riverside County CA Real Estate

Interesting comments, especially the one by Ntsike W. (above).....what a novel concept to declare CA a high cost state......I am sure there are some ramifications somewhere, for someone, or it would already have been done.......I do agree that no matter what.....if people can't afford the home, they can't or shouldn't buy it.....I have a home right now for 209,000 a 3 bedroom, 2 bath that should be a good price....but if you look at the mortgage calculations, who can afford it, in this area?

I see prices adjusting, and that is good and bad....depends on where you are sitting I guess.

Dec 28, 2007 02:09 AM

Rosemary Brooks

BMC Real Estate - 209-910-3706 - Stockton, CA

The Mother & Daughter Realty Team

Sleep too long and you will be saying in hindsight what you should have done, what you should have taken advantage of. Baby this is "rock bottom".

Dec 28, 2007 02:54 PM

Are you kind of a buyer, who is currently sitting on the fence waiting for "housing prices to hit rock bottom"?

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