Everyone has their own opinion on where the market is going. There are many facts that can give us clues to where things are headed, but there are also many factors that are yet to be known that will also have an impact. Many people saw this downturn coming, but many didn't foresee such a fast and dramatic fall. I certainly understand your dilemma and confusion in today's market. These are uncertain times for both buyers and sellers.
Being "in the field" everyday I talk to buyers, sellers, investors, home owners, renters and other Realtors. I read real estate news from the California Association of Realtors (CAR), the National Association of Realtors (NAR), and other real estate related organizations. I listen to media reports about the housing market, read the LA Times, Ventura Star, and the Acorn local real estate reports. I attending continuing education seminars and I am taking classes for my Broker's license and GRI designation. I preview properties and view all new listings, price reductions, expired and cancelled listings in the MLS daily to stay informed about local inventory. I do this so I can have the big picture in my mind about the national and local economy and how it relates to the local real estate market.
As I have said before, everyone's situation is different and whether or not you should buy or sell depends on your personal situation. As a Real Estate Consultant, I am here to help you evaluate your personal situation and see how it fits into the overall "big picture" of the real estate market. For some people, it may not be a good time to buy or sell. But for others, opportunity knocks.
Yes, the future is uncertain. If I had a crystal ball, I'd be rich. The best proven approach for real estate investing is to buy low and hold. Buy low doesn't necessarily mean wait until that point in time when the market has hit its lowest point. How will you know when that is? When everyone else knows too? Then it won't be a time of opportunity. Buy low means get the best possible price in the current market. If I could find you a property priced below market where the Seller is willing to negotiate incentives, then that would be a good buy in this market. If you hold it for more than three to five years, you will see appreciation.
Everyone's personal situation is different and every home for sale offers different opportunities for negotiation of price, terms and conditions depending on the seller's personal situation and motivation. There are opportunities out there and if you plan on living in the home more than 3-5 years, what the market does next month or next year won't really affect you. You will be living in the home you want and enjoying it for years to come and the market will go up again.
Real estate is cyclical. It goes up and it comes down. Just how much it will go down with this correction is still to be seen. In my opinion, we will continue to see homes sell for less than previous sales of similar homes. Given the large supply of inventory compared to the low supply of buyers, it's only natural. Basic supply & demand. There are a lot of people waiting on the sidelines, so when the general public thinks it's the right time to buy, everyone will be buying and seller's won't be offering such good concessions if it's a seller's market.
All I can say is that no one has a crystal ball to say what will happen next year. If you are buying a personal residence, you just have to ask yourself, would my life be better if I bought now rather than next year? Would it lessen my commute, would I be able to stop renting, would I have piece of mind knowing I own a place of my own, would I benefit from the tax benefits of home ownership, etc.? If the answer is yes, then the next step would be to find the best possible value and have a Realtor on your side who can negotiate the best possible price, terms and conditions for you. If the answer is no and your life wouldn't't improve whether you bought now or later, then wait and see what happens.
If you have to sell, there are a lot of marketing strategies that can be used to attract buyers. Price plays an important role, but offering up front buyer incentives can sometimes attract those buyers who need a little help. Making your house both visually and financially appealing to buyers will set you apart from all the competition. As a Real Estate Consultant I can guide you through the selling process to bring you the greatest return, in the shortest amount of time, with the most favorable terms. Ask me about my specialized Marketing Plan.
Here are some interesting links to use as resources when forming your own opinion of the market and how it relates to your own circumstances.
California Association of Realtors (CAR) 2008 Real Estate Market Forecast
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