I had lunch with a friend of mine yesterday. I met her working sales in new home developments years ago, but she was laid off last year due to a turning market. Now she’s an agent that works re-sales in
But the housing market news is so incredibly grim, and it doesn’t seem to be getting any better. Economic uncertainties, corporate and political corruption, fraud, and unemployment at its highest levels in…well, you get my point. Yet, people are still buying homes.
My friend went on to tell me that many of her clients feel the bottom has already been hit. She also explained that many sellers have knee jerk reactions to the economic news, and continually lower the asking price or accept the low-ball offers just to unload the house, which is one of the reasons she only chooses to work with buyers.
But have we actually hit the bottom? A Federal Housing Finance Agency (FHFA) home price report released this week showed
Ironically, it is the boom cities that have felt the worst of the market. Major metropolitan cities in
Not unlikely, as this market continues its acceleration downward, many buyers are beginning to find opportunities where those opportunities did not exist before. In fact, of the three escrows that my friend is about to close next week, two of the buyers came from areas outside of
Another realtor friend of mine working across the bay from
There are those buyers that continue to wait, watching the news and the economy for any sort of sign or discernable change in a positive direction. Other buyers that jumped into the market 5 months ago thinking the market was at bottom may already be re-thinking their strategies. One such buyer, a business acquaintance of mine, happened to purchase into a new condo development in the South of Market area of
Against popular opinion at that time, my acquaintance friend broke the cardinal rule of home buying…he fell in love with the home. While dreaming of his first home purchase and exactly where his 50-inch plasma would be mounted, he would probably admit today that he made a mistake. Today, the exact same floor plan on a higher floor can be purchased at nearly $100,000 dollars less than what he originally paid.
Though drops as significant as $100,000 dollars in 5 months are not a daily occurrence for even this market, it’s not unusual either. Today, with developer incentives and credits being handed out to entice buyers into the market, it’s no wonder people who bought two or three months ago are feeling the sting.
Nevertheless, realtors will tell you it is a good time to buy a home. In fact, they would probably tell you that if you have a job, and good credit, you should buy a home. So what are you waiting for…a good deal?