As many of you know there is a lot of talk about the economy showing signs that it might have hit bottom and some say we are rebounding. As many of you, who keep track of the markets, know the data does not support those optimistic views. I wonder how much longer is going to take buyers and investors to figure out that is not the case and what effect it will have on the real estate market. What are your thoughts or comments you've heard out there?
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I am out there predicting that although we have hit 'bottom' we can very well stay at the bottom for a long time! We all need to warm up to the notion that just because we hit bottom does not translate to a 'rebound'!! Let values stay on the basement floor for the next few years at least. What on God's Green Earth is Wrong with that??
I belive if we have not hit bottom yet, we are pretty close. The tidal wave of REO's expected are trickling in and measures are being put in place to slow the release. The lack of supply has created a spike in prices. I belive we may be at bottom in CA (The housing market) as far as what investors will be able to puchase for. Right now cash is King ; however for every cash offer i get on a REO there are 4 to 5 financed offers willing to pay 10 to 20K more. Problem is that banks want the for sure so they go with cash. Once financed buyers are able to purchase we will see a pick up in values.
The other thing that is being put in place right now are the pre-approved short sales. Buyers will pay more for these because the home are usually in superior condition and it meers a normal transaction. Once these roll out the banks will be able to get more, which will push comp values up. I think we are 6 to 8 months out. As far as the Economy as a whole, don't forget much of the Stim Money Hasen't even hit the streets yet. Position yourself because its gonna be a fun ride once things begin to recover. Shoot me an email when u get a chance..
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I am out there predicting that although we have hit 'bottom' we can very well stay at the bottom for a long time! We all need to warm up to the notion that just because we hit bottom does not translate to a 'rebound'!! Let values stay on the basement floor for the next few years at least. What on God's Green Earth is Wrong with that??
I belive if we have not hit bottom yet, we are pretty close. The tidal wave of REO's expected are trickling in and measures are being put in place to slow the release. The lack of supply has created a spike in prices. I belive we may be at bottom in CA (The housing market) as far as what investors will be able to puchase for. Right now cash is King ; however for every cash offer i get on a REO there are 4 to 5 financed offers willing to pay 10 to 20K more. Problem is that banks want the for sure so they go with cash. Once financed buyers are able to purchase we will see a pick up in values.
The other thing that is being put in place right now are the pre-approved short sales. Buyers will pay more for these because the home are usually in superior condition and it meers a normal transaction. Once these roll out the banks will be able to get more, which will push comp values up. I think we are 6 to 8 months out. As far as the Economy as a whole, don't forget much of the Stim Money Hasen't even hit the streets yet. Position yourself because its gonna be a fun ride once things begin to recover. Shoot me an email when u get a chance..