I'm pretty excited because inventory continues to get swallowed up (even though you may see a few stragglers out there) by investors and other buyers to the point it has driven inventory down farther than it has been in our area for 3 years! That demand has remained constant and even through all the drama of the economy and the government/ bank issues. The good inventory is being hit with multiple offers very quickly in many areas in Placer, Sac, El Dorado, Yolo and San Joaquin counties. I attend various investor groups throughout the month and many others feel we are at now or very near the bottom. Everyone has a different perspective as to why, but most feel we are there. I too feel we could very well be at the floor. I think we may see prices dip for a month here or there over the next 18 months and then recover back to that floor. Appreciation won't happen again for awhile unless inflation has an impact, but "value" is the important factor (a.k.a - How many loaves of bread will your house buy you when you sell it?). You probably won't get any extra "bread" for your property for some time.
On top of all that, rates are VERY low. The Fed will not let the rates on treasuries or on Fed Funds remain low once economic recovery begins because they will fear inflation. Do you disagree?
All that said, I think it is time to strike NOW if the deal is right. It is no longer a waiter's market. It is definitely a buyer's market in my mind. It could become a seller's market faster than anyone may think if I am reading the tea leaves correctly. For example - Banks are hold firm on prices and getting them. They are also tightening up their terms with requirements for lower and lower inspection periods with higher and higher Earnest Money requirements. They are also ‘trickling" new foreclosures into the market instead of "dumping" them and creating a glut of inventory. What is it called when the Seller's start setting those types of terms? Seller's market? If all property on the market was conventional versus bank owned or short sale, it would be a Seller's market today... Lastly, I have heard a few of our area builders have started to purchase land tracts. They generally do not do that unless they are thinking about building on them.
I am writing more offers than ever! It is exciting times right now!! Let's find that RIGHT DEAL and get you in while the getting is good!!
Your Real Estate Agent
Kenpatterson@kw.com
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Well, here we are a few months down the road... What do you think? Was this post on the mark?
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