Ask the Real Estate Expert

OK let’s be straight about this thing. The real estate market can feel like a crapshoot. It does not have to though. Here’s a market update. Two maybe two and a half years ago the real estate market took a turn. The buyers finally said we are not paying 20% more than the last house sold for. The sellers said we are not bending or compromising on our price. There was a standoff. Buyer’s stopped buying sellers did not sell hardly a thing. 6 to 9 months later the sellers broke. Sellers started reducing their prices and buyers slowly came back to the market place. Sales of homes in San Diego plugged at a much slower pace for almost 18 months from that point. December of 2006 something changed. There were quite a few more buyers in the marketplace. Not usual for a December when sales of homes are typically slower due to the holiday season. Since December when homes sat on the market for an average of 4 months or more, things have picked up their pace. Not just in one part of town but in all areas of the county. Why? Let’s see. One part is that sellers are becoming more realistic regarding the value of their homes. Remember if it’s priced right it’ll sell. The second is that sellers are initially pricing the homes more in line with the value instead of higher and trying to wait the market out. Interest rates on loans have come up a bit. Buyers are responding by attempting to get into the market at still really reasonable rates. People scoff at mid 6% interest rates, but does anyone remember 14% or 17 % interest rate. Rates are good, don’t sweat it. Buy what you can afford and always plan on holding a property than you need. To be continued………….

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