Viki Benbow - The Real Estate Huntress: Changes In The Wind

Yesterday, the California Association of Realtors came out with new numbers on existing home sales in the Greater Sacramento Area. Sales for February compared with February 07 were up 11%. However, the prices were down about 30%. The news focused on the negative part of the drop in prices, however, I think it is truly the silver lining to this horrible crises we are in. With interest rates still down below 6%, a home that sold last year around $350,000. is now priced in the $245,000 range. The payment for that same home also has gone way down from approx. $2500. to around $1700. If you then add in the tax benefits, that exampled $1700. payment actually computes out to an after tax housing cost of about $1400. per month. What are you paying in rent? Also, if history repeats itself, and it has as long as we have been keeping records in the real estate industry, eventually those prices will go back up. Can you honestly say that you can save $100,000 in the next ten years? If you can, way to go! But imagine that if you combine that disciplined savings ethic with the appreciation by buying now, you can double your potential net worth.

Today, I checked the numbers on active listings….the available inventory is down in all 4 counties about 10%. Hmmm..... amazing! Sales went up, inventory went down. In our meeting this morning, agents were complaining that they are facing competition among buyers with multiple offers (as many as 8 to 10 offers) on many of the homes their clients seek to purchase.

I am constantly hearing from buyers that they are waiting for the bottom… Folks, take stock in what's happening, prices are down, interest rates are down, inventory is starting to go down, activity is up….. feels like changes are in the wind to me… the bottom? You’ll only know for sure when it is too late and prices are soaring back up.

If you’re thinking about either buying a home or an investment property, don’t wait…. Give me a call at 973-4532. Remember, my 39 years of experience includes several markets just like this! You know what I say, experience is not expensive, it is priceless!