Daily Real Estate News December 9, 2008

Study Shows Housing Values Have Climbed
News reports have been packed with stories about declining home values, but a recent government report shows that the situation is not nearly so dire as some reports make it sound.Despite big loses in some areas of the country, the majority of markets continue to show growth in home value over the last five years.According to the third-quarter survey released by the Federal Housing Finance Agency, out of 292 metropolitan markets, 273 showed positive net home values in the last five years. Only 19 percent were negative. While home values declined 4 percent on average in the last year, values were up nearly 29 percent over the past five years.According to the Federal Housing Finance Agency, markets that gained the most over the last five years were:
Honolulu: up 78.7 percent
Virginia Beach: 72.6 percent
Flagstaff, Ariz.: 66.5 percent
Bellingham, Wash.: 65.6 percent
Wilmington, N.C.: 62.1 percent
Baltimore: 60.6 percent

Source: The Washington Post Writers Group, Kenneth R. Harney, (12/06/08)

Bottom of the Market Secret

I've got a secret...or at least the national news seems to be hiding it....let me say it here folks....we're at the bottom of the market in Santa Cruz County. Why do I say this you ask....well, we are seeing multiple offers on well-priced homes and that is a major turning point (yes they are still lower priced than they were even a year ago, but that's what happens in a buyer's market). But, you should know the market goes in cycles. Ask anyone that's been around the industry in the last dozen years and they'll tell you, they've seen it with their very own eyes.

Despite the doom and gloom of national media (which IMHO, you can't generalize something like the Real Estate market nationally, especially along the coast of California, because markets are totally different even within one county, but I digress) our office is buzzing around with happy and excited clients- both on the mortgage end AND the sales end.

Let's break this down...the bottom of the market is usually in hindsight... those that happen to buy during that time are considered investor "stars," but I call them lucky with good guidance by a Realtor. This is my job- I follow trends in this industry and I am telling you...don't miss this golden opportunity to buy some California real estate at prices you won't ever likely see again.

The rates for loans have dropped again and are expected to stay that way for the remainder of this year. This alone, is a good idea to buy or refinance. In any case, say you do buy a home in today's market...you'll need to sit on it (or in it) for 2 years because of tax reasons (or at least 12 months as an investor), by the end of 2009 we expect to see the market not only bottom out but slowly climb back on it's way to a sellers market..but by then you won't have the inventory selection you have now. So, even if today's market goes down 1-3% more in price, the difference is very small in your loan payments and you'll be in the market at a phenomenal deal AND you'll be ready for the turnaround when you sell.

SO, yes we're doing the Buyer's Dance right now...because we are at the bottom of the market folks!