This is recent message from my local board of Realtors in the Desert or CDAR. Its good advice for buyers and sellers. The message should be clear now.
The most asked question right now is "where / when is the bottom of the market?" - many buyers now wait on the sidelines to buy at the bottom. Timing the market is dangerous ground. It's more about hindsight than foresight.
When will we announce the bottom of the market? After about 90 -120 days of an upward trend line. In other words, after you missed it. The bottom is not a pinpoint on a graph. It is more like a wide bumpy trough. It appears that is where we are right now. Here is a quick look at the Desert Market right now - Sept. 07 -- compared to a year ago.
| Inventory of homes/condos for sale: | Up about 12% |
| Median Price: | Up 0.6% |
| Sales: | Down 33.6% |
| 30 Yr. Fixed rate mortgage: | 6.38% in 07, 6.40 in 06 |
| Median Days on Market | 81 in 07, 76 in 06 |
Other than a sizeable decrease in sales and a modest bump up in inventory the market has been flat year over year. This may be the "window" buyers have been looking for.
For Buyers:
- Best time is now to find the neighborhood, development and house you want
- Qualify for the 30 yr fixed. If rates rise your protected, if rates fall you decide when to refinance.
- The "window" is open. There is no advance notice when it shuts.
- Prices doubled over the last 7 years. No prediction on the next 7, but history says some will always look back to now and say, "wish I had."
For Sellers:
- Get out of the market if you're not serious. Not the time to test the water.
- Clean up, fix up, go for "curb appeal" and make it show well
- Price it right up front - dropping the price every other week is not a winning strategy
- Participate with your REALTOR® in the plan and cost of marketing
One final note: As a result of the recent So. Calif. fires there could be some upward pressure on rents and shrinking of inventory as fire victims rebuild and/or relocate.
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