Special offer

Lower Interest Rates Slowing The Pace of Falling Home Prices

By
Real Estate Broker/Owner with IMPACT Properties, Inc. BRE # 01356534

It's starting to happen.  Many have asked me, "When will we hit the bottom?"  I always said, "It will happen when the buyers decide that it's time to buy again."  That time is now approaching. 

chart

The low interest rates of 5% coupled with the lower home prices have resulted in the slowing of the falling home prices.  I have been showing property over the last few months and it appears that we are nearing the bottom.  Bank Repos have figured this out.  They aggressively price the homes below "market" value and are getting multiple offers which results in a sales price that is higher than the list price.

 

The demand for homes is there.  Buyers and investors are getting back into the game.  Are we completely done?  No.  2009 will still be shakey.  The government is still trying to figure out what to do and I think that the less they do, the better.  It's better because they tend to slow down the turn-around process, rather than speed things up.

So if you are buying or selling, now is the time.  The market is fairly stable, you know what price to put on your home and buyers know what they want to pay and can afford it!

Let's all toast to a successful 2009!

Comments (2)

Tony Lopez
ALRG Inc - San Diego, CA

The combination of low rates and 1990 prices is definitely creating a great time to buy in decades.  The crazy thing about it is that prices in hard hit areas like Southern California will still slide at least 10%, more like 20%.  There are still a good number of buyers waiting this out and hoping to take advantage of even cheaper prices, I am one of them.

It will be interesting to see what role the government will play in these next couple of years.  The more intervention they have the more prolonged this real estate downturn will be and the longer this recession will last.

On a positive note we are in Southern California and for some reason everyone wants to be here:).  So when we do hit rock bottom and your fellow News channel tells you real estate is good again, we will be back and in a major way!

Dec 15, 2008 04:37 AM
Short Sales Buyers
ShortSalesBuyers.com - Fullerton, CA

I have to disagree... s. cali will see a hit... only reason why it hasn't declined is the state legislators... they are trying to price fix...

I don't have a crystal ball so I can't say yes we bottomed BUT I look at the techinals and the fundamentals... and it clearly shows that we have another leg to go down.  All you have to do is look at the volume of loans and compare the sub prime vs the prime loans...

Banks are waiting for the new administration to bail them out... this problem is bigger than the RE market... it's the derivatives market and credit default swaps... these moron in office turned the other check...

 

Jan 17, 2009 09:12 PM