State of the Market

By
Real Estate Broker/Owner with Moreno WorkGroup DRE#01240205

The Antioch market is picking up and on many of the deals I am working there have been multiple offers. I also see the prices rising a bit as the foreclosure market gets flushed out with the bargain hunters.

I do expect some more foreclosures to hit the market each month as the ARM rates adjust and people start walking away from their homes. There has been much ballyhoo about the FED helping with the "Stimulus Package" that has gone through Congress/Senate but with the talk of recession many consumers have climbed back on the fence.

I suspect this will hurt what the Stimulus Package was suppose to do, which is open the market to new buyers with a good loans at good rates. Which brings us to the paradox of loan rates. The Fed keeps dropping the rates (short term rates) yet the rates go higher, what's up with that.

They say it is all about the BOND market but the BOND market rallies and the rates go higher. Or is it when the Bond Market tanks the rates go lower? They keep changing that. Makes one wonder....

No one knows for sure however I suspect that the banks are dropping the prices down quite a bit on the homes they are selling as foreclosures and now they want to make it back some way ...so what better way to recoup if your price has to be low ....raise the rates. Just my opinion, not substantiated.

Anywho .... when folks ask me ..."Is this a good time to buy?" I always ask ....how long do you expect to stay in your new home? If you are looking to speculate then I would say we need to do some very extensive homework and make sure you will get a return in a year or two. There are many areas that are still appreciating. We need to find a place that is. It may not be where you want to live but you will make a profit. Or if you plan on staying in your home for at least five years then I would say, " It is as good a time to buy as ever. Five years should be more than adequate for the housing market to recover if we were to look at historical trends. This town in California is as good as any."

Nuff said......Robert Moreno

Comments (2)

Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen
Very good news about the Antioch market. Thanks for sharing the positive news.
Mar 11, 2008 05:49 AM
Matt Clark
RE/MAX Results - Cincinnati, OH
Cincinnati Real Estate
Good outlook.  The people that are waiting to see the bottom aren't going to know when it hits until it's already back on the upswing.  I would be buying everything I could right now!
Mar 11, 2008 06:38 AM