READY FOR SOME GOOD NEWS?
Some financial experts have labeled 2007's market as the "roulette economy." As we all know, whatever goes up must come down, but the nice thing about real estate is that whatever goes down always comes back upward again (much like stocks work).
A healthier market is anticipated in 2008, as Wall Street cleans up the lending mess and the pressure cooker of home demand releases its top. While the national average of home prices declined between one and two percent in 2007, that's peanuts compared to how much homes appreciated in the previous years. And many markets are appreciating still.
Keep in mind that "national" statistics for real estate mean about as much as a forecasted high temperature for the entire nation. Consumers get skittish when they hear that 40% of foreclosures are due to doubtful subprime loans, but it's important to put that in perspective, because those loans only constitute about 10% of all mortgages.
As the lending industry stabilizes and interest rates rise only slightly, buyers who are ready to purchase will discover that housing is still the best investment out there. Ask a real estate agent to monitor new listings, selling times and final sales prices, and then to advise you when conditions are right to either buy or sell. 2008 should be a year of opportunity in the real estate industry.
Larry Weichman is President/ Broker for Costa Mesa based Weichman Realtors. His company has served Costa Mesa since 1976. Please direct your questions to Larry@TeamWeichman.com or call 714-241-4532. You may also visit www.TeamWeichman.com.
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