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2009!! in a word WOW!!
Familiar words like, Correcting! Slowing! REO’s Short Sales, Tax Credits, Bank Take-overs, 1st Time Home Buyers returning to Market! All of these terms, I am sure you have heard, as we follow 2009’s real estate cycle.
As this year progresses in our Area, we have seen the highest number of Foreclosures & Short Sales that have ever been, in now, my 30 years of being this area’s Marketing Area Specialist.
During a day, I am asked these questions as I move around the communities of Aguanga/Anza/Sage. “When will we start to recover??” I am seldom asked how much longer, or when will we see signs of recovery, but, “How bad is it really and how low will prices go?”
Elsewhere, whenever, someone becomes aware that I am a Real Estate Broker I am asked the same questions. I have to admit, that my “crystal ball” is still a bit “unclear.” However, I think a little lower, and certainly at least another year. What it does see, is that the number of Bank Owned Properties, will continue to come on the market, offering great opportunities for Buyers that are in the market at this time. Properties currently listed are below the cost to replace. In the month of April, I am encouraged to see 22 homes go into escrow. in the last 40 days. The number of new REO’s are slowing. Offers being accepted by the lenders, are presented with Full New Loan Approval or Cash.
Demand, is the key, as it drives the market. As buyers seek the best value for their money. The lower priced homes will start to find new owners, as the inventory Is reduced, there will be room for the prices to gradually start to increase. Hopefully, the Lenders, will be more responsible, and loan only to those that are really qualified to buy. Thus, saving all of us, including the home_ owner, the pain of drastic high/lows in our Real Estate market, like we are seeing now. In simple terms. Be responsible! For those homeowners that will lose their homes, bankruptcy and time will be the only solution I am hopeful that the experience will make them more cautious, and thoughtful then, regroup, and again to move into homeownership, there is nothing like owning a “Piece of America.
As these buyers return to the market, thru the years, the market values will again return. Another “hot topic”, this year is “Go Green!” Energy Efficient! , & Recycle! Which leads me into, what a home owner might do while waiting for the recovery. If Appliances, hot water heater, Furnace or A/C need replacing, it might help to increase value to consider replacing it with energy efficient items. That will make your home more desirable from an “energy saving point of view” An issue that the buyers of tomorrow are more educated and concerned about in a desire to have more control over their budgets.
Remember that our Home is the center of family unity! |
