Chico Real Estate- How To Miss The Market Opportunity 2009-2010 - Chico Houses

Chico Real Estate- How To Miss Market Opportunity 2009-2010 - Chico Houses

Anyone who's paying attention knows the present real estate market is a unique Buyer's market.  What are the primary factors that create this buyers market?

• Reasonably priced inventory
  
• Historically low interest rates
• Federal Tax Credits of $6,500 to $8,000

The purpose of this article is to explain in 3 simple steps how to miss the opportunity to capitalize on this unique Buyer's Real Estate Market in Chico Real Estate

1. MISS THE TAX CREDITS: Don't take steps now to insure you are in contract on your home by April 30, 2010.  This has to be the home you move into by June 30, 2010. Note: It won't pay to fall out of contract after  April 30, 2010 and expect to capture the Tax Credit.
2. EXPECT HUGE INCREASES IN FORECLOSURE INVENTORIES TO BE DUMPED ON THE MARKET:  Industry experts may say what they will about the forth coming increases in foreclosure inventories, but the past is no indication of the future. Banks are wiser now that 2 years ago about drip feeding their inventories into the markets. If you don't know what I'm talking about take a look at Las Vegas and the bank's strategic marketing and DOM's. This had created bidding wars in perhaps one of the markets hardest hit by falling prices. It's one thing to be waiting for a better bargain than today's bargain. It's quite another to miss the purchase opportunity altogether.
3. IGNORE THE SLEEPY GIANT (low interest rates) Interest rates are presently around 5%.  Having experienced several business cycles over 31 years in business we saw interest rates change in 1979 with far less warning than the present real estate market devaluation. Interest rates went from 10% to 21%. That my friends was a game changing event in real estate and construction. It is our opinion many are focused primarily on the price of homes and ignoring the seemingly sleepy giant in the form of low interest rates. While that is understandable due to the fact falling prices have created the most attention. What will the potential buyer hoping to purchase at the absolute lowest price locally do if interest rates SUDDENLY move beyond their reach? Ask any economist this question. "Without the present Federal Reserve Policy where would mortgage interest rates be today?"
   

 The disciplined market observer will be looking at the big picture. Who doesn't know what goes up must come down? While we don't know exactly when interest rates and home prices will go up we know there are pressures for interest rates to go up not down.  Lest we also forget we are not in a true free market economy, but rather a policy driven economy. Our Government and the Federal Reserve have proven more than once their capacity to change the natural course of the economy. 

These comments are not intended to pressure anyone into making a purchase today. Each of our buyers and sellers will make their own decision. We simply provide information that we trust will empower buyers and sellers to make quality decisions regarding the timing of Chico Real Estate transactions.

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Buyers And Sellers Seeking Further Information For Chico Real Estate Contact:

Phone 530-370-1818                                                           Email: steve@chainrealestate.net