Bottom Fishing for Real Estate
http://www.veoh.com/videos/v18571450XncRAr2pMarket 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.
San Francisco Market Update - The Winners and The Losers
Information about the San Francisco real estate market, foreclosures, and buying opportunities.Who benefits and who gets hurt in a down market?
Prime rate drops and Mortgage rates go higher…Buy Why?
At the end of October, the Fed cut its overnight rate on loans between banks by 0.5% to 1%.
so… why do the Mortgage rates go up? This article explains why.
Is the Government Bail Out Helping or Hurting the mortgage Industry?
Government bailout uses tax payer money to help stabilize the banks but where does all the money really go?
Is the government bailout money being used by the banks to purchase other banks and monopolize the industry or to stabilize the industry? The Washington Post offers more information.
Trickledown Effect
Some of the banks have now started a “trickledown” effect to pass on this saving to their best customers. But will JOHN Q PUBLIC and the new home buyer ever see the benefits of this easy money?
San Francisco Market Trends
Two Year Market statistics San Francisco
Here are the numbers as sourced from Broker Metrics for San Francisco area.
This is a 2 Year Comparison from the month of September 2006 to the month of September 2008.
Single Family Homes All SF as of September 2008:
- Median sales price is down 6% from 835,000 in 2006 to 782,500 in 2008
- Months Supply of Inventory is up 42% from 2.7 in 2006 to 3.8 in 2008 (it is down from 4.45 in 2007)
- Days on Market was 34 in 2006, 31 in 2007, and 44 in 2008
Condos All SF as of September 2008
- Median sales price is flat. It was 738,250 in 2006 and is 735,000 in 2008 (it is also flat from 07)
- Months Supply of Inventory is up 30% from 3.6 in 2006 to 4.7 in 2008
- Days on Market was 41 in 2006, 38 in 2007 and is currently 53 for 2008
Additional Information
- October/November 2008 FUTURE Market Trends
- More specific details on YEAR 2007
- Neighborhood sales - 2nd Quarter 2007 to 2008 San Francisco Market statistics
- Neighborhood sales - 1st Quarter 2007 to 1st Quarter 2008
- More specific details on YEAR 2007
- Market Statistics in other Bay Area Counties (Alameda, Contra Costa, Marin, Napa, Sonoma
The GOLDMAN REPORT- Weekly market Update
The Goldman Report Blog and The Goldman Report is a weekly update and BLOG from the President of Pacific Union Real Estate on BAY AREA and North Counties MARKET CONDITIONS of homes, condos, and investment properties.
These links provide interesting and valuable information on real estate news along with specific sales, Bay Area market statistics, and real estate activity on SAN FRANCISCO, MARIN, CONTRA COSTA, ALAMEDA, NAPA, and SONOMA counties.
San Francisco Market Meltdown??
What is going on with the San Francisco Real Estate market?
“Market Meltdown” or “Wizard of Oz”
Recent headlines read “Grim forecast for economy and housing.” Inset with another smaller headline “Best in 5 months-Payrolls add 166,000 jobs in October”. Talk about schizophrenic reporting.
Many of us in San Francisco are confused by these contradictory headlines. We ask, “What is the truth…Is the San Francisco housing market really in trouble?” For me, I wonder if some of the pompous media protagonists of “doom and gloom” have been hanging out with Dorothy of “Wizard of Oz” fame somewhere in Kansas. Perhaps they don’t even live in San Francisco. Perhaps they are confusing our real estate market with the subdivisions of Iowa? To these columnists, I say, “But Dorothy…San Francisco is a LONG ways from Kansas.”
Let’s face it. The San Francisco market has its ups and downs. But long term, San Francisco real estate still out performs most other commodities for the best return on investment. The San Francisco market has survived fires, earthquakes, recessions, depressions, dot.com bombs and inflationary times. We have survived mayors, supervisors, and the rent board. If you doubt our ability to withstand the present market conditions then ask yourself, “What did I pay for my property? Then ask yourself, “What is my property worth now?” And if you don’t know, then pick up the phone and call me. I can provide you an experienced, comprehensive analysis of all your real estate options!
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Tom Carlson
- (415)518-0671
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