Short video on upside and downside of buying Bank foreclosures.http://www.veoh.com/videos/v18571450XncRAr2p
Market Downswings offer Buying Opportunities. Short Term Sellers take the HIT!
We are all challenged with the market undulations. At times, it feels like we are on a rollercoaster ride and we are helpless to do anything but HANG ON. But for many long term homeowners, the paper loses on the market fluctuations will have little or no effect.
And here is why:
Real Estate always follows trends and market cycles. Market corrections are inevitable. We have been on an upswing market trend in San Francisco since 1999. The good news is that after the market corrects itself, the 50 year market performance statistics reveal that the market eventually recovers and, in time, the prices go even higher than the last high.
FOR FIRST TIME BUYERS: The reduced prices in the market allows for many FIRST TIME BUYERS to afford home ownership. There is also a $8000 first time buyer credit available for those that qualify.
FOR SELLERS: For sellers trading up, what you lose based on past higher values on the sale of your home, you will pick up on the now lower values if you purchase of another home.
SHORT TERM SELLERS take the hit: The people who get hurt in market swings are the short term buyers and sellers. If you are a recent home purchaser and if you are forced to sell because of financial needs, a job transfer to another area and you do NOT replace this property with another property in the area, then you may suffer financially from the downturn.
Some of you remember, as I do, the real estate market in 1980 when interest rates peaked over 18% interest on FHA 30 year Loans. There was recession, and then there was recovery. Then there was the up market swing in the 1980s with yet another correction. In the 1990’s we had the DOT COM boom and then another correction.
The TRUTH about real estate markets is this:
There is ALWAYS a market…good or bad.
There are ALWAYS buyers and sellers.
Any given market is determined by an offer from a willing buyer and acceptance from a willing seller.
Buying opportunities occur when there is less competition and increased inventory.
And such is our present market.
The San Francisco Association of Realtors has created a quick and easy link for the general public to find and locate OPEN HOMES in San Francisco. Check it out.
While this article is a bit old (January 9, 2007), the information offered by the New York Times on the effect of changing interest rates is still quite relevant.
In July 2008, the Federal government passed the Housing and Economic Recovery Act of 2008 provides a great opportunity for many first-time homebuyers to take advantage of a tax credit of a $7500 tax credit on home ownership. The $7500 tax credit is a dollar for dollar reduction in your income taxes but subject to IRS conditions and qualifications. There is a short window of opportunity as the tax credit program ends June 30, 2009. Buyers must meet eligibility requirements.
For more specific details, please see: