State of the market - January 2008
We hear a lot of bad news regarding the Real Estate market nowadays. Television, newspapers, radio, your friends, maybe even your real estate agent, are telling you how bad the market is.
Admittedly, there is much to be concerned about, especially if you are a homeowner that is looking at a mortgage reset, or if your job is in jeopardy.
If you are a homebuyer, things could not be rosier. Today, the number of properties available is greater than ever, so the chance of finding a home that you want becomes hard only when you think of how many homes you want to look at. Interest rates are low,; and apparently are going to go lower, if the Federal Reserve lowers interest rates again, which many experts are expecting. Finally, real estate prices have retraced back to 2004 levels, 2003 in some neighborhoods.
What can we expect for the New Year given this scenario. The lenders expect the number of foreclosures to grow until the end of March. This wiil add to the number of available homes. However, we have seen a marked increase in Buyer activity for the past 2 months. It is increasing each week. While the number of Buyers will not have an ability to cause prices to rise, there is a good chance that the effect will be to stem the decline in prices.
Itis our opinion that by the 3 rd qurter of 2008, we will see a real estate market that is more balanced, with Buyers and Sellers on more of an equal footing which will cause a more stable price level than what we see today. We do not see any glimmer of increases in prices this year and perhaps into 2009. However, homes in perfect condition in any neighborhood will command a premium due to the fact that when they are priced to the market, multiple offers can be expected for them.
If you have any questins or comments about this article, please reply or call me.
Thanks,
John Case
Broker Associate
Intero Real Estate
(925) 308-70445
Cell (925) 382-9771
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