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Wmaas, Home Buyer in Bay Street Viaduct A...

When will the market level out?

Asked by Wmaas, Bay Street Viaduct Area, Savannah, GA Fri Apr 11, 2008

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Hi Wmaas,

Well, very good question....wish someone would know the real answer for sure. In any case the "figure" we keep hearing all the time is sometime in 2009/2010 and of course that also depends on what region the property is located at. Places where the job market is strong, like San Francisco and others, will see a come back sooner than others.
Leonardo
Web Reference: http://www.leonardoteam.com
1 vote Thank Flag Link Sat Apr 12, 2008
Hard to say. It also depends on which market in which part of the country. Some areas have been much harder hit that others and some are already seeing a bit of recovery. Right now one of the main driving factors for the problems in the real estate market is the condition of many banks and lenders. The mortgage crisis has created difficulties in getting some types of loans, including loans for builders and develpers. When the lending world begins to right itself things should begin to improve. Much of what I've been reading indicates that perhaps late this year, or maybe into next we'll see improvement in many or most areas, but that is a prediction and may or may not be so. Again, some markets are experiencing improvement now including where I am in Charlotte, but we also have an influx of people moving here so that helps us out a lot. We also didn't have massive appreciation rates like many other areas did either.

Generally most reports I've read tend to lean towards a couple more quarters of this slump, but things beginning to improve in the next year.
1 vote Thank Flag Link Sat Apr 12, 2008
Yes, you are right...
Ask Realtors...they have no bias, no self-interest and they can earn a living whether folks are buying homes or not...

That is a fantastic ABC news report and it states FACTS. Where are your facts to back up the statement: "Long term the right real estate is the best investment you will ever make"?

Will you guarantee your client's investments in real estate? If I were to buy a home through you tomorrow, would you guarantee me that it is the best investment I will ever make?

How about guaranteeing all your clients they will not lose money over 10 years, or you will give them their entire commission check back?

Then, yes, maybe we can ask a Realtor for advice...
0 votes Thank Flag Link Sat Apr 12, 2008
First of all DON"T watch the video. Every market is different. Some are turning now. 20-30 years is a little overboard and sound a lot like Charlie and the other talking heads. Remember they are reading a script, they don't really know what they are talking about. The best source for your market is a local REALTOR. Ask one or better yet ask three or four. Long term the right real estate is the best investment you will ever make. But please don't get your information from TV or newspapers.
Good luck
0 votes Thank Flag Link Sat Apr 12, 2008
Could take 20 to 30 years...
Watch this video:
http://tinyurl.com/4gmglh
0 votes Thank Flag Link Sat Apr 12, 2008
Hi Wmaas-
Erica Pittman-Gaynor here.
The predictions here in California (I'm in Santa Cruz, specifically) are that prices will most likely continue to decline over the next two years, about 10% per year. Then they will take another couple years to get back to where we are now so it could 2012 before we start to see a rise in prices. Perhaps even longer depending on the next two years. It is an excellent time of opportunity, especially here in Santa Cruz, to buy what we consider affordable properties for our County. Some people want to wait to buy but if interest rates increase it will lessen their buying power. Also, we won't know we've hit the bottom until we start to go back up. Then the media will scream BUY, BUY and there could be a flurry of activity which will change the supply & demand dynamic we have now. It's going to be a very interesting four to five years but savvy buyers will see this as a time of opportunity and come out ahead of the game if they can buy now and hold on to it for 5 or more years.
Hope this helps, don't hesitate to contact me for further information in our area.
Have a great day!
0 votes Thank Flag Link Sat Apr 12, 2008
A true leveling out of the market can only occur once the spike in foreclosed and bank owned (REO) properties has worked through the inventory. So long as owners continue to walk away from homes and banks continue to take property back at a record pace which in turn builds inventory and thus drives prices down the market will not level off. I have posted several articles on my blog http://www.MikeBolen.com about foreclosure and its effect on the market.
Web Reference: http://www.MikeBolen.com
0 votes Thank Flag Link Sat Apr 12, 2008
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