Why now? Why not? | 1850 Realty ®

Why now?

With all of the attention or lack of attention this market is getting, Why now?, is a realistic question to ask about buying or selling a house. But if it’s so good, then why are people sitting on the sidelines? Good question.

In my opinion, there’s a few different reasons why people are on the fence. To name a few…

Federal tax credit. It’s over. What’s the incentive to buy? or Why should I bother to put my house on the market when there’s a lack of buyers?
Inventory is starting to increase. Prices will continue to come down. If buying, then I’ll wait to rock bottom. If selling, I’ll wait until prices come back up.
Strict lending practices. It’s hard to get a loan so I’ll wait until it becomes easier.

As realistic as those reasons are, there are also logical reasons to move forward in this market. The emotional state of this economy is clouding the insanely opportunistic market that is among us.

One of the major differences from today & the beginning of the downward spiral is finance.

When the financial market took a dump in the 3rd quarter of 2007, literally every bank stopped giving loans. The crash of the secondary market left Wall Street investors with huge losses to rapidly depreciating portfolios which created an absolute lack of money in mortgage lending world.

Risk has always been a common thread in any investment. However, prior to the financial clasp, the potential for risk on a mortgage backed security was next to none…until the second half of 2007, where that fool-proof system went down the drain.

Fast forward to today, second quarter 2010. It’s been three years of conservative financing, depreciating home values, foreclosures & short sales. But as I mentioned earlier, one of the major differences from today & three years ago is the financing.

Don’t get me wrong, it’s not easy but it’s available.

Why Not?

Here are some logical reasons on why you should buy or sell in this market.

Money is cheap! Did you know rates are in the 4’s??? Really! If you want to get aggressive, a 5yr Arm is in the high 2%’s!!! Do you really think this is going to last? Doubtful. As time goes on, the rates will start to rebound.
Inventory is increasing. This may not seem like a good thing but it is! It means there’s more opportunity out there. If a seller is unrealistic from the beginning on their price & the inventory increases, then there’s a chance to negotiate.
Tax benefits. Yes, I had to go there. Always a feature that is presented with home ownership because its so true. If you’re renting & have a steady job, why on Earth are you waiting to buy? Do you realize that you have the opportunity to pay less to Uncle Sam in taxes? If you’re thinking about selling, why are you waiting for prices to come up? Do you realize that by selling low, you can turn around purchase low, lock in a low tax & interest rate?

With all that said & done, if you’re still on convinced that now is the time, I’ll leave you with my theory of the market in North County San Diego…& Southern California for that matter.

Even if prices continue to come down, there’s a threshold. What I mean is simply this: A $400,000 house is not going to become a $300,000 and a $300,000 house is not going to become a $200,000 house & a $200,000 house is not going to become a $100,000 and a $100,000 is not going to be Free.

Make sense?

For those of you who are thinking about buying, check out my Free Buyer’s Guide in this Crazy Flipped Upside Down Market. It’s Free!

If you have questions or comments, email me Carol@NCSDproperties.com or call/text me (760) 593-7393.

Why now?

Federal tax credit. It’s over. What’s the incentive to buy? or Why should I bother to put my house on the market when there’s a lack of buyers?

Inventory is starting to increase. Prices will continue to come down. If buying, then I’ll wait to rock bottom. If selling, I’ll wait until prices come back up.

Strict lending practices. It’s hard to get a loan so I’ll wait until it becomes easier.

Why Not?

Money is cheap! Did you know rates are in the 4’s??? Really! If you want to get aggressive, a 5yr Arm is in the high 2%’s!!! Do you really think this is going to last? Doubtful. As time goes on, the rates will start to rebound.

Inventory is increasing. This may not seem like a good thing but it is! It means there’s more opportunity out there. If a seller is unrealistic from the beginning on their price & the inventory increases, then there’s a chance to negotiate.