Joey - it is the glass half full theory for us brokers.  Whichever way we want to look at it...

Dorene: That's good to hear from you. Too many real estate professionals are lamenting the depreciation instead of working the opportunity. Come back soon!

Great post telling buyers that it is great news for them.  They can be saving a lot of money right now.

Joey, it's a great market for buyers.  We're holding a homebuyer's seminar next Saturday and have close to 20 people registered already.  They know it's a buyer's market and want to learn how to take advantage of it.  Yes, I feel sorry for those innocents who have to sell because of divorce, relocation, etc. and who bought at the peak.  However, I don't feel sorry for those who have owned their homes for some time and now are only going to net $150,000 instead of the $200,000 they could have made a year or two ago.  They're still coming out ahead.

Joey:

There is a buyers seminar being held on April 12-13 in Los Angeles by the California Association of Realtors. A lot of promotion is going on to get the idea across that buyers have a great opportunity. The challenge is buyers think that if they wait just a little long the prices will come down more.

The word is mind-set

For people who have made the right choices about buying real estate today may allow them to have a better home for less but it is still an ugly time in our business until this situation corrects itself and it will. Thanks for your post.

I wish I had a zillion to invest right now in real estate- the best time ever for buyers.

Joey, I too wish I had saved and could invest right now. The prices are so good in my area, most are down to 1998 prices except in a few areas. 

Russ: Thanks for stopping in! You're so right. A couple years back a house only had to have locks on the doors to sell for $250k or more. Now you can find a home with four bedrooms and land under $200k! I wish you well.

Brian: I'm not into the cheerleading...how various economic and professional organizations promise that your home's value is going to stabilize soon. The value of real estate is not going to stabilize until it becomes reasonable again and all the foreclosures get sold. In my market, there are plenty of foreclosures still going on...but prices are also in the reasonable zone again. We don't have to PRETEND that the bad news for home sellers is almost over. We have a REALITY that the good news for buyers is here. Thanks for your comment.

Lorraine and Loretta: Thank you for visiting! You're right, there are some who aren't in the right mindset. I tend to agree, some prices are still going to drop. But let me tell you, I'm 80 miles away from Los Angeles (city) and for the last month there are buyer bidding wars on REO properties in Hemet and Riverside County. When was the last time you heard the word 'bidding wars'? For those that intend to buy and hold, I think now's the time. A big factor for me, as a mortgage loan officer, is that I think the bond market is overvalued. I'm concerned that long-term interest rates are going to go up, no matter what the Fed does with the short-term rates. And, while not ALL the homes have hit rock-bottom prices, the smart sellers HAVE priced them below even the current market. My crystal ball is in the shop, but we're already seeing the monthly mortgage payments of a 30yr fixed home loan LOWER than rent...and the ability to buy real estate and rent it out a profitable enterprise. How low will it go? My crystal ball is in the shop. What I DO know is that the people who waited for housing prices to continue to appreciate 2.5 years ago are the ones who lost out on the Sellers market. I'd hate for that to happen the other way around to my buyers.

Terry: Yes...this is a localism post and does NOT mean to disparage the real estate professionals that are like the gas station owner, dairy farmer and auto manufacturer in my examples. We have to sell homes and mortgages in order to pay the bills.

However, I do NOT view it as an ugly time in our business...even if it's more challenging for me to make a living or if deals are harder to come by. Here's why:

1. It's not about me. It's about those I serve. I would LOVE to have a huge appreciation on my house (I'm actually upside down on my own house), and I'd love to have an enormous refi boom. But we need a season of affordability and solid investment.

2. Some real estate pros need to get out of the market. The ones who don't deserve the 'pro' label. Too many got in during the boom, and we're seeing the backlash of people who doubt the value of a truly professional REALTOR or mortgage lender. That is going to change soon, because all the people who don't know how to help buyers and sellers or refinancers (is that a word?) are getting out in droves. The Hemet-San Jacinto Association of Realtors roster is going to be half of what it was 3 years ago.

3. It's already happening. I don't have to compete against 1 million different mortgage loan consultants anymore. My pipeline has rocketed up.

Hang in there....if you're a quality real estate professional you will use this market to perfectly position yourself and have more business than you can handle. Go do it!

Debra: I have millions of dollars to invest in real estate. Of course, it's not my money. It's Patrion Mortgage's money. Still, if you can come up with some type of down payment, I'll give you a zillion dollars. Preferably in $417,000 increments! Thank you so much for visiting.

Missy: Real estate limbo...'How low can you go?' Because of agency guideline changes, I recommend that investors put 25% down on rental properties. If prices in your area are down to 1998 prices, a lot more folks are able to come up with that much...but at least 15%. I can't help but ask (being the Hemet Home Loan Guy and all), but how is your primary residence? What is it's value? Do you have any equity? A good lender in your area may be able to help you tap that equity in a way that makes financial sense. And NOW is a great time for that...as long as you're not like me (upside down). Tax returns are also a great way to get down-payment money. Thank you so much for your comment.

Joey, It definately depends on what side of the equation you are on. I spend a lot of my time working with sellers. Most of that involves giving them bad news. However the buyers I'm working with are getting some really good deals right now. Sellers just need to stay out of the market unless they truly need to sale.

Bryant: Yep. Like you have to do with sellers, I have to give bad news to a lot of people coming to me for a refi. And you're also right about the solution. The market will turn around when 1) Sellers who aren't serious take their homes off the market, 2) the 'summertime' Realtors (Faketors?) and mortgage pros (mortgage ho's?) get out of the business and 3) Banks sell the REO and others sell their homes at lowest possible prices. The faster prices drop, the faster things stabilize, but the waiting around doesn't help...nor, one could argue, the government 'stimulus' that delays the inevitable correction.

You have the right attitude!

Shannon: Thanks. What I've found is that there are more people than I can help with a mortgage in ANY market. It's just my job to find them and take good care of them. But there's no way to run out of business unless you just stop trying. People are buying. People are selling. People are refinancing. "The Market" may make it easier or more challenging, but in a way it just doesn't matter.

Joey, it is all about perspective isn't it?  We have people here who think the sky is falling also and we have not even had a drop per se in home prices. 

This is very smart and right on writing!  I love the analogies!  AWESOME! :)

Marchel: The glass is half sideways with a slice of purple. Thanks for sharing your perspective.

Shannon: Thanks, Shannon. Tell that to the folks that dole out the features! :) I hope you're doing well in your market.

Hi Joey,
Hear! Hear!  The news media is the culprit in my opinion.

Hi Joey- "The folks that dole out the features" now that's funny...but there is a little flag thing that can be submitted :)  I liked this, I even sent my lending buddy (AR Member) over here to read this....I was comparing you guys :)  The one thing you guys have in common is a sense of humor.  What you have over him is a knowledge of my area :)

Q- Do you have any 1st time buyer programs, or know anthing about the ACORN Program?

Cynthia: I'm not sure I'd say they were the culprit, but everyone interprets the story. The news is just interpreting the story in a way that serves their interests...but not all the news. See my next comment.

**UPDATE**

Maybe the Hemet Home Loan Guy's crystal ball is working again...here are two articles I came across today that I would like to share:

The Case for Foreclosures - Steven Landsburg in Slate Magazine

Warren Buffett on Housing - Northwest Indiana Real Estate Blog

Kathy: Thanks. There's still plent of real estate pie, so get your piece. And I don't know your other lender friend, but does he have my dashing handsomeness? :-)

First time home buyers, eh?

ACORN - only BofA is doing it and, from what I've seen, they're not really doing it now

CalHFA program does 100%, allows 3% seller contribution.

Read about the Riverside County First Time Homebuyers Program HERE.

So, are you coming to the breakfast? Or are you going to jilt me? I don't think it will snow this time.

Joey, thanks for the link, sorry for my delay in responding ... My other really big passion is politics and today was a huge and fun day.

Hoosiers for McCain

There are huge opportunities in this market. Especially out your way for first time buyers. We are anxiously awaiting HUD posting the median prices... Buyers are lining up to get in with the new limits coming to the OC.

Steve: No worries. Thanks for dropping in.

Sandra: Yeah...that will make a much bigger difference out your way. But there are other issues than just HUD posting new medians. As a lender, I wonder who which investors will purchase the loans. Hardly anybody wants to fund loans that are non-saleable. I also wonder what effect it will have on rates for conforming loans. I remain cautiously hopeful. Take care!

Joey,

Another great blog.....I am waiting on the one with The Cat in the Hat.....or Green Eggs and Ham....lol.....you made your point in this post....it is the best time in years to purchase......

Julie: Will it get better? I don't know. I'm seeing bidding wars now, but there are plenty more foreclosures hitting the market. I'm thinking prices will drop and interest rates will rise...but what do I know? What I know is that if it's profitable to do it now, then do it now. Come back soon!