Is The Worst Of The Worst Market In 30 Years Behind Us?
April 7th, 2008 categories: Buyer's Advice, Seller's Advice
The answer to that question, in my opinion is, in a word…..YES!
You will not hear this from the media for another 6 months. It will take that long for today’s sales going into escrow to show up in Dataquicks reporting of closed transactions. Even then, it will be showing sales down over the previous year, but it will show a steady increase of sales month over month of the previous month. This simply means that beginning in January of 2008, sales have increased every single month. I believe this to be much more than just a seasonal surge that we usually experience every Spring. We are seeing evidence of a pent up demand of buyers that are now being lured into the market by prices not seen in many years. In Moreno Valley and Riverside, you will find MANY homes priced under $200,000! In Corona (Corona’s Eagle Glen) area where we’ve held many sales rallies. Homes in this market that were priced in the 900s a few years ago are now selling in the 600s, with some even in the 500s. In Rancho Cucamonga and other parts of San Bernardino we are seeing much greater activity due to sales price adjustments. Orange County does not have much of a foreclosure market but nevertheless, buyers, listening to the media have been on the sidelines for a year or so. As you will see in my comments below, these Orange County buyers are coming back into the market as well.
Let me give you some specifics. Our Moreno Valley Office are working with more buyers right now than they have had combined in the past two years. Think about that statement. This office is seeing more buyers in the past few months than in the past few years total! I have wrote countless of offers for buyer clients. Why countless offers? Because the market is hot and with multiple offers everywhere, usually on foreclosed properties, I am competing with anywhere from 7 to 30 offers on the properties my clients selected. I and other REO listing agents in the office are routinely getting 8 to 12 to 25 offers on properties which are in good shape and aggressively priced. It is back to the market of a few years ago….with buyers having to lose two or three or more properties before they believe me…..that if they want the house, they have to offer above full price.
So, let me go back to the beginning and tell you why I think the worst is behind us. When you see the prices at levels that bring out hoards of buyers making multiple offers…you have seen the end of the downward price spiral. In the Inland markets, foreclosures will still dominate the scene for the next year and will drive the prices, but the prices will not be at lower levels than they are selling for today. Even though there are thousands of foreclosures in the Inland Empire, there are more buyers who are attracted to the best ones. These will set the floor for pricing for other banks and other homeowners. There is no reason to believe house prices will go down further in the face of multiple offers at todays pricing. In Orange County the market is not driven by foreclosures but prices have adjusted nevertheless and well priced properties bring out the multiple offers in this market too. And don’t forget the Fine Homes buyers, they are out and they are buying.
So, what does this mean. It means it is time for you to call every friend, relative and email them this blog and tell them you have seen the bottom of the market in terms of prices.
Short of some financial calamity on Wall Street making mortgage money unavailable, I believe that we are at the bottom of the pricing challenges. The federal government has already proved, with the last minute rescue of Bear Stearns, that is will not let anything happen to endanger the economy further. The government is working daily to solve the housing issues with increases in loan limits, help for builders and help for people who are in or about to be in foreclosure. With this type of government involvement it just does not make any sense that prices will continue to decline. This means, you need to get the message out to the people you know. All of the people you know….know people sitting on the sidelines waiting to buy. Waiting for what? They continue to wait for prices to decline. You need to get into your car, into the market and see the reality. You probably w
on’t believe me at first because the press is still telling you prices are going down. You need to get into the market and see how to get ahead of the market by buying now at the bottom. In six months when the press begins writing positive articles, an avalanche of buyers will descend on the market and that will be the beginning of price increases. You need to buy now in the calm before the new buyer storm. Today you have lots of choices and good prices. In six months they will have fewer choices and more buyers to compete with for those choices.
I am not predicting here some large increase in sales prices in the near term. I am simply saying that the best deals to be had will be out there now and over the next six months. If you miss that window, you will pay more than you will have to pay today. With the incredible low mortgage rates today, why would you let this opportunity slip away?
So please consider this: The market is getting up off the floor….are you? 
Get off the sidelines and get into the game. The worst of the market is behind us. We are returning to a stable market. Buyers will have to be prepared to pay fair prices and sellers will have to accept fair offers to get their homes sold. It is no longer a buyers market with the sellers on the ropes. Nor is it the sellers market of a few years ago where they could and did hold buyers hostage for every last dollar possible. So, if it is not a buyers market and it is not a sellers market, what kind of market is it? It is an agents market! This is where I will shine. I will use my skills to find good deals for buyers in this bottom of the market. As a Listing agent I will be able to use my skills to help sellers price their property so it will sell. Neither side has the other side over a barrel.
To be successful you must have ME on Your team, to see the market ahead that I see and hopefully you will take advantage of the opportunities and make your BUYING NOW !!!
