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2008!! in a word WOW!!
Familiar words like Correction! Adjusting! Declining Market Recessionary Finally Depressed! All of these terms, I am sure sound familiar, as we have followed this year’s Real Estate Cycle.
Add to that another word we by now are very familiar with the call for “CHANGE”, and we have uncertainty, leaving you and me like “a deer caught in the headlights, sort of “froze”. Gas Prices have adjusted down, but for how long? When is the Market going to improve?
I am asked these questions daily as I move around the communities of Aguanga/Anza/Sage. Elsewhere, whenever, someone becomes aware that I am a Real Estate Broker. I have to admit, that my “crystal ball” is a bit “murky.” The issues are multiple and causes are variable. A solution to one problem, seems to have added effect on another.
Most of you here have noticed the numerous Ads. Presented by the various Real Estate Companies. Watched as Prices have declined, due to lack of demand. What’s actually adjusting is the Land Prices, Remember, folks, UNDER ALL IS THE LAND. From 1999 to Mid Aug. 2005 We watched as land prices increased, 300-500%. Many of the Property owners began to “believe” that their land, untouched, and unimproved, actually was worth what last week’s parcel sold for.
When what was really happening was a “Buying Frenzy” Where the law of supply and demand, drove the market. In order to keep Pace, banks and lenders In general, started to adjust loan programs to Meet the outcry of the Buyers/Investors, thus throwing caution to the wind, they made available homes to folks that really couldn’t afford to buy. To put it In simple terms. The solution is painful. Some of the property owners will lose their homes, as visible, when driving around, I see more vacant homes, some will sell their homes for less than they owe, and deal with the consequences of a short sale. For some, bankruptcy will be the only solution. Whatever, the choice lessons will be learned from all of this misery.
Future Buyers will be more cautious, Banks will be more thorough In their lending practices. And as thru the years, the market values will again increase. Another Issue that has been discussed this year is “ Global Climate Changes” which leads me into, what a home owner might do while waiting for the recovery. If items, need repair or Appliances need replac- ing, it might help in the to make the property value, to consider replacing with energy efficient items.
That will make your home more desirable from and “energy saving point of view” An issue that the buyers of tomorrow are Becoming more informed about. Last, but not least, we must be patient, remembering that our home is the center of family unity. |
