Wednesday, January 21, 2009

Housing Market Update for 2009!

Happy 2009! Have you been able to maintain those resolutions? Are you thinking that 2009 is the year we get out from this hole we have found ourselves in? I sure am!

Previous Prediction: I’m expecting a huge rush of people buying in January and February because of the government dropping mortgage rates.

Recap: The lowest priced homes east of 880 are seeing multiple offers and selling. I bid on a property with 40 offers on it valued at 450K. Properties west of 880 are still taking some time to sell. Below is a chart of sales in the Blossom Valley area.
Prediction: The lowest priced homes east of 880 are going to continue to see multiple offers, and the properties west of 880 will see prices continue to be stable or drop slightly (1-5%)

What’s driving the markets:
· Interest rates are at 40 year lows!!!
· Fewer sellers are putting their homes on the market
· Majority of short sales have now become “Bank Owned” which are much easier properties to purchase
· New president is showing hope that a recovery is in sight

The housing stats I’ve reviewed are showing that some parts of the market will not let prices go any lower. When 40 bids come in on a single property, there are 39 buyers who didn’t buy. Thos buyers are still out there ready to buy. Regardless of what the biased media is telling us, houses are selling, and we might be seeing more demand than supply. Buyers in this market not facing a multiple offer situation can negotiate great deals and if you are purchasing for the long term, now is a great time to purchase when prices are low and interest rates are desirable. For each rise in interest rate by 1% your affordability drops by 10%. Beware of waiting for prices to drop only to be priced out by the rising interest rates.

"The key to realizing a dream is to focus not on success but significance - and then even the small steps and little victories along your path will take on greater meaning."
* Oprah Winfrey (1954 - )
Enjoy the rest of your week and if you know of a friend, co-worker, family member or even a stranger who really wants to buy a piece of property and needs some motivation, or accountability, let me know. I’ll be sure to help them get what they want.

The table represents aggregated values based on MLS data for the specified date.