[quote=kcal09]This is a brief article published yesterday. Would appreciate your opinions…
To buy or not to buy?
……[/quote]
Who wrote that? A RE agent? A home builder? Someone trying to sell a house? Cause that is a pretty bullish piece, completly missing a few key details.
1) Inventory is UP, not down. I dont know where they get that special 22% drop in inventory, but that isnt what I see. Not here in San Diego.
2) The author needs to show some math on that “owners vs Renter” comment at the end. Where, what houses/condo’s/townhomes, payment levels etc etc etc. Sure, there are some deals out there, but there are some real turkeys too. Are they including the tens of thousands of dollars itll take to turn some of the REO inventory this guy has to be talking about into rental quality? Blanket statements like that throw up red flags to me.
3) Sure mention rates, also mention what it takes to qualify for those rates. Better credit, higher downs, higher reserves, low debt. It takes people time to adjust to this.
4) How about talking about the LOSS of the FEDERAL REBATE instead of just blabbing on about the state tax CREDIT. The loss of the rebate drove buyers out of the market, simple as that. (Not to mention that 10k number is such bull, even the state is estimating that the real average rebate is gonna be about $5700, not 10k.) The Federal one was a guarenteed $8000. No wonder the state CREDIT over 3 years didnt make up for the federal $$ in hand.
5) Pricing was driven by the tax rebate, not some kinda ‘over correction’ atleast not as far as the general market is concerned. Now that the rebate is over prices are falling, why shouldnt buyers hold out for 10-15% drops in pricing now that the market is weak? That is alot more $$ than any dumb tax credit unless you are buying low end 1/1 apts.
6) JOBS JOBS JOBS, Do I need to say more?????
7) There was a large buying spree in the early spring for the tax credit. And all the good, well priced properties were sold. Now we have over priced, or junk. Not every house is created equal, but price will fix anything. So buyer wait for the right price.
