So Summer Buying Season Is Over ... What Now

Questions abound as we enter the fall season.  Will the Obama Administration continue the $8,000 tax credit past the end of this year for 1st time homebuyers?  When will the backlog of bank REO properties be unloaded onto the market?  What is the real status of the housing market?  Have we witnessed the bottom of the housing market?

What is your opinion ... email me your thoughts?

I just read a few statistics from Scott Sambucci over at Altos Research and he states that the inventory in his ten city composite is tightening, days on market is stabilizing and fewer sellers are relisting their properties. These indicators typically point to price stabilization or price increases in the housing market barring other factors, i.e., broader economic factors such as unemployment, etc.  And what is it that we see ... the short term prognostication is that asking prices are clearly falling in the same ten city composite and new sellers entering the market are doing so at lower prices.  The other factors that don't bode well for pundits espousing that the housing market is rebounding in several areas, is that over 1.0 million adjustable loans will soon reset into higher interest rates while unemployment rates remain on the rise.  These two factors (interest rates resetting and unemployment) will only exacerbate an already messy REO market segment.  This may result in a continued drag on existing home prices across the board.  In addition, there are rumors of interest rate increases sometime in 2010.

Although we may have experienced the worst of the price adjustments, there remains a few bumps in the road moving forward over the next eighteen months or so.  So what does that mean?  Well over the next 18 - 24 months there will be significant market opportunities for the brave of heart or those who have good credit and cash.  Consequently, the question is can you afford to remain on the sidelines wondering what to do?  Yes, there are many doubts and questions to cause most of us to hesitate and doubt the market's resiliency; however, these questions always abound in any market.  One truism that remains is that a property in a good location (old adage still applies ... "real estate is all about location, location, location") that is priced below the market is a GREAT deal and you should give it serious consideration!

If you are interested in tracking the local Southern California market and bank REOs then visit us at:  http://www.coastalcommunityhomes.com.  On our website you can search all the active listings for opportunities in Southern California, as well as get statistic data organized by neighborhoods and so much more!  As is always the case, if there is any way I can be of service to you or a friend, please feel free to contact me.