Steven Thomas, Aliso Viejo RealtorDid Realtors receive instruction on knowing when the bottom is reached? Homes don't go to the highest bidder? And OMG, if you don't buy in 2008 you're going to miss the PRIME TIME to buy!
This is a compilation of this report dated 12-27-2007 and 01-10-2008; since he overwrites the same-named file, the previous ones are lost, but a well-chosen google search can extract the old ones.
2008-01-10: Orange County Market Time Report
What can we expect in 2008?
...we will most likely see a change to the conforming loan limit from $417,000 to $625,000,...
Basic Econ 101 tells us that prices will come down. But, let’s not forget, that homes are not basic commodities bought and sold on eBay to the highest bidder. Instead, there is stickiness to pricing because homeowners have emotional ties to their homes that transcend basic economics. (Ummm... so do we use Econ 101, or not?)
Buyers, what to do?
Nobody knows it’s a bottom until well after the bottom...
So, it is not JUST about price.
...the market will bottom out sometime in 2008 and the interest rates will drop to historically low levels. It will prove to be the best time to buy BUT very few buyers will have the courage to take the plunge until they know for a fact that the market has bottomed out. Unfortunately, nobody rings a bell at the bottom of the market. Instead,
buyers must wait for signs that the market has officially improved, when all the buyers get off of the fence and buy. The conditions will not be prime at that point in time. The prime time to buy will be in 2008, with many choices, a lot of pressure on pricing, the absolute best interest rates and the knowledge that in time, the market will appreciate beyond the highs reached in 2006.
Happy New Year!
Sincerely,
Steven Thomas, RE/MAX Real Estate Services, President
"Outstanding Agents! Outstanding Results!"
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