Sacramento Real Estate Views

Fencing…a different perspective

I got an email today and while I haven’t heard this a lot lately, I guess it can be taken as a good sign. It read like this:

“Rob, We understand that the housing industry is suppose to continue to fall into next year……. We are holding off to see what the market will bring.”

There is a lot of fence sitting going on out there right now, here’s what I think.

“Last year about this time, just prior to the mortgage crisis, the NAR and others stated that they foresaw that 2007 would be a flattening year with a nice recovery, or soft landing, occurring in 2008. As we saw, that wasn’t exactly how it went!

I guess the short answer is that no one really knows what the market will do. It could get worse or it could begin to flatten or it could get better. Based on history over the last 30 years, this is one of the worst downturns of them all. (If I think about this honestly, I feel very comfortable about the future!)

We are at 2003 level prices currently in the resale market and new home builders, traditional and active adult, are generally in a better position than resale. They are the last to feel it and the first to rebound. This is due to many factors.

The following link will take you to a couple of articles in favor of buying now and I’m sure you don’t need any information resources against buying now.

Will prices descend below 2003 levels? If I could answer that question, I’d be a bazillionaire.

Buying California real estate has always been a good investment if held for the long term. The general rule of thumb is that it doubles in value every 10 years. So I would say that if you’re planning on buying and then selling in the next couple years, then analyzing the market on a micro level is definately the strategy.

However, if that isn’t the plan, I believe its a great time to buy. I don’t personally believe that prices will go that much lower but you never know. I could be wrong. Many were wrong about 2007.

I do know this: 10 years or even 5 years from today, there will be many people who will be kicking themselves for not buying this year. Do you want to be one of those folks?” (I even think in 2 years, there will be A LOT of kicking going on!)

So how’d I do? I’m almost afraid of asking what you’d say…I’ve seen some of the nasty press out there lately. Be gentle…aside from what your reading, there are some bright sides. Things are getting better, it’s a great time to buy.

Why don’t you come down off that fence, aye? I think even Chicken Little just bought a home! (or two!)

Tags: home buying, housing, market commentary, Sacramento New Homes