Real Estate Agent with Pacific Coast Real Estate Group

I know that almost everything that we read in newspapers or watch on television is mostly terrible news about the economy; short sales, foreclosures and job losses. Nevertheless, it is only 1 out of 10 homes that is upside down. There are 9 others that are fine. Even though unemployment is rising, it is only 7 or 8% of people that are unemployed. The other 92% are still employed.    

With the announcement that conventional interest rates for purchasing a property might be coming down to an unprecedented 4.5%, something that we have not seen since 1960,  if I was a Buyer, with a fairly secured job and money saved for a down payment, I would be running to see my Realtor to purchase my first home. What could I possibly be waiting for?; and there must be a lot of Buyers that fit this description.

If you need a home to live on for a reasonable amount of time, 5 years or more, my advise is BUY A HOME NOW. Prices are down, down, down, inventory is high, high, high. What are you waiting for?

I have been a Real Estate agent in San Diego for more than 30 years. I have seen many ups and downs. I have seen interest rates at 17%. I have seen much higher unemployment figures. When regular interest rates were 11%, there were many Buyers jumping in and purchasing their first home. NOW IS 5% AND IT COULD GO DOWN TO 4.5%. When real estate starts going up, it goes up really fast. As a smart Buyer quoted in the New York Times said "You can never time a bottom. This is a long term investment for us, and it truly is the best investment we have in our portfolio right now" 


Isaac Bensussen- Best Homes in La Jolla


Comments (8)

Mike Kelly

You make some very salient points! What blows me away is even with ALL THE NEGATIVE news folks are grabbing properties! This is a value driven market in our county of Sonoma. I just ran the statistics for November and some startling numbers emerge.

  • 76.5% of ALL the sellers will do NOTHING after they close escrow except move! This number consists of Short-Sales, REO's (foreclosed homes) and new home product being dumped!
  • REO's make up 414 of the 2087 ACTIVE listing which is around 20% but make up 60% of all Sales.
  • Short-Sales have bloated our continue to shows. Only 10% of them are closing and their time on the market is in excess of 6 months.
  • REO market we have a 1.5 months supply of product! For all listings it is now 5.5 months
  • Median Price is DOWN 35%
  • Sales are UP 32%!!

NOW that's with all the bailout stories running around, job lay-offs, stock market tanking daily, 401K's disappearing--amongst all this we have sales way up, interest rates perfect and an opportunity of a lifetime to get one heckuva deal!! PLUS we'll have lower interest rates in the near future, higher conforming rates come January 1st plus more VALUE driven buyers who are very smart and taking advantage of this striking value driven market of a lifetime!

Dec 07, 2008 10:11 AM
CC (Colleen) Hine
Shorewest Realtor - Elkhorn, WI

I totally agree with you on this one.  Seems if the media is not pushing it, the average "Joe" isnt buying it.  Just when did the average Joe become so dependant on the news instead of doing their own investigating.  

Perhaps the average joe is so far into credit debt that they cannot afford the down or are not creditworthy????

Dec 07, 2008 10:14 AM
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

Isacc I hear you.  I bought my first truck in 1981 with 15 percent interest.  We really need to tune out the media and go about our lives.

Dec 07, 2008 10:34 AM
Michele Connors
The Overton Group, LLC Pitt & Carteret County - Greenville, NC
Your Eastern North Carolina Realtor

the media is a 24/7 frenzy of negativity and the primary reason our economy is living in fear--- as Realtors we are responsible to sort out the truths  and build buyer and consumer confidence.

Dec 07, 2008 10:41 AM
Paula Reno
Astro Realty (Buyer Agency) - Cedar Lake, IN
Broker, Owner - Cedar Lake Indiana Realtor, Astro

Great Info sounds like a Great Email I could send out to my people. Wow May I use it..???

Dec 07, 2008 10:53 AM
Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Isaac, great points, and it isn't as bad as we are being led to believe!

Dec 07, 2008 11:03 AM
Isaac Bensussen
Pacific Coast Real Estate Group - La Jolla, CA

Mike: Interesting information. Thank you

Colleen: Maybe. Although there must be many old fashioned buyers.

John: I agree. The media is paralyzing buyers

Michelle: I agree. As I said to John, the media is paralyzing Buyers.

Paula: Be my guest.

Tony and Darcy: Thank you.

Dec 07, 2008 11:31 AM
Not a real person
San Diego, CA

I grew up in the generation where we bought a home when we needed a home, and then we raised our families there. After they graduated from college, we downsized.

Today's generation waits for the "best time" to buy a home. As soon as we can get back to the point where real estate is a life-long investment rather than a 2-7 year investment, we'll all be better off.

Dec 22, 2008 02:12 PM