Thanks Diane, I agree with what you said as well.
Wow Newportfijo, I am a bit surprised by your answer. The question was not if it was a good time to buy, but is it a good idea to buy a property in Fontana? I know Fontana and the market very well as I live not too far away from there. I don't recall ever telling buyers that prices never go down. Real estate has and always will be cyclical. This means it reaches the highest point and always lowers or levels out. That is how real estate has been for a long time. None of us are experts on future price trends. I do have a college degree and did take many economic classes. I do understand how things work and yes, I am a sales person, but I am an honest one. I do have an incentive to be accurate on my assessments as I get over 90% of my business from past clients who know how honest I am. I know there are sales people out there that will tell people what they want to hear, but so far, on this question, all the agents are right on. If someone plans on buying real estate and holding on to it, it does pay off depending on how long they want to hold on to it. I wish I had a crystal ball myself, but I listen to Alan Greenspan and Ben Bernanki who is the Federal Reserve Chairman and they both are saying that we are in a mild recession. People still need to move for various reasons and buy for various reasons. However, prices are low and interest rates are low which make it still a great time to buy. With all the inventory on the market right now, sellers are practically giving away the farm as my friend Diane Wheatley has mentioned. This means they will throw a lot in to selling the house for example, paying the buyers closing costs including points to buy down the rate even further, or including furniture, paying HOA fees, giving away trips to buyers. I have seen a lot. In, an up market when it is a seller's market, good luck getting anything paid for by the sellers at all or them budging on the price like it was several years ago with the sellers getting multiple offers driving up prices even further. So, yes, now is still a good time to buy because it is a buyer's market and the buyers have the advantage. Do I think prices will come down further? Yes, I think slightly, but not much more. If you plan on holding on to a piece of property for a while, you will typically come out ahead. And, if you find a great home, it may not be around if you wait, so if you buy it and hang on to it, you should make equity on it! Real estate can make people a lot of money if they can hold on to it. I feel it is one of the best investments still today with prices being low as well as interest rates. I remember interest rates being 11% and higher about 10 years ago and we are complaining now when it hits 6%!
And, no one said prices will rebound quickly, no one knows how long prices will take to rebound. But, with the REO's and short sales out there, prices are still great and I would even buy now! Good luck Lola!
Joan Patterson, B.A., A.S.P., G.R.I., Realtor
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, CA