Last time I checked a 13% decline or even a 5 to 10% decline sounds like alot to me. Frankly, I still have a hard time beleiving a Wisteria Place home sold for 875K. The only explanation I can see is that it was a model home. A lot of the information on the Bressi Ranch sales flip flopped between Wisteria Place (the cheapest neighborhood) and Heather Court (the 3rd most expensive neighborhood after WP and Primrose Point)which share the same street names and are located adjacent to each. Many of the sales refereed to were in Heather Court where prices where considerably higher and homes much nicer. If you haven’t been there, Wisteria Place homes are essentially dettached townhomes with garages behind the homes accessed via shared alleys. The have no driveways and no backyards (really!) and are priced lower because of that. Heather Court homes are you more traditional house with backyards, driveways accessing your garage.
Frankly, i’m not trying to make it sound anyway…..just reporting the facts. We all have opinions as to what is going to happen (and I share many of yours) but they are opinions. Some will be right and some will be wrong. Forbes Magazine had a cover story in 2002 that really estate prices were going to crash and that no one should buy real estate. It was their opinion. Those that didnt listen experienced rapid appreciation and the opportunity to take advantage of 30 yr fixed rate refinancing in the low 5%’s. They will give back some or all of that appreciation but they will keep their 5% fixed rate mortgages if they were smart enough to get them….I did!
I do not promote myself as a financial expert forecaster, it’s just not part of my job. My job is to help people who want to purchase a home find the best one for tthem and to get them the best possible price and terms. Housing is a basic need and everyone needs it. If everyone decided to rent there would be people on the streets as there isnt enough rental property out there. Furthermore, most people would not be happy living in a property they dont an ownership interest in. I encourage people to buy what they truly need, what they truly can afford today and to finance in such a manner that they will not be faced with rising mortgage payments they might not be able to afford. If they say they a merely looking to buy to make money, I express my opinion that its unlikely to happen anytime soon.
