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Do you think it's a buyer's market now?

A

AgentEL

Golden Member
I spoke to a real estate agent regarding buying a condo in the Southern California area. He mentioned that its a buyer's market since last October. For anyone that pays attention to RE, do you think it has reached the point of a buyer's market?
 
Walk away and don't listen to another word he says. Already a proven liar. Property values are soring.

Rule of thumb, if interest rates are low everything is in high demand, price goes up therefore sellers market.
 
Well for NorCal it's definitely a seller's market ... there are multiples bids ... anywhere from 5-20 offers after the 1st weekend of listing ...
 
Originally posted by: LordSnailz
Well for NorCal it's definitely a seller's market ... there are multiples bids ... anywhere from 5-20 offers after the 1st weekend of listing ...
Click to expand...

Yep. Prices are going up like there's no tomorrow.
 
Originally posted by: Fingers
Walk away and don't listen to another word he says. Already a proven liar. Property values are soring.

Rule of thumb, if interest rates are low everything is in high demand, price goes up therefore sellers market.
Click to expand...

I wouldn't say he's a proven liar, compared to 6+ months ago, the RE market in socal has slowed down. Housing prices have even been low single digits negative for past couple months. So in a relative sense, it is a better situation than before. Prices are still near all time highs, but bidding wars are pretty much over. Some places have slight price cuts.

My friend, his mom is a RE agent. Just a couple months ago, my friend commented she finally had the time to cook dinner for the family for the first time in like over a year.



 
Originally posted by: LordSnailz
Well for NorCal it's definitely a seller's market ... there are multiples bids ... anywhere from 5-20 offers after the 1st weekend of listing ...
Click to expand...

What i don't understand about norcal is, when the dotcom bubble popped and unemployment shot up, why real estate didn't even blink. Back in 1990 or whatever, when the aerospace industry took a crap, real estate in socal was heavily affected for many years.

 
Originally posted by: OS
Originally posted by: LordSnailz
Well for NorCal it's definitely a seller's market ... there are multiples bids ... anywhere from 5-20 offers after the 1st weekend of listing ...
Click to expand...

What i don't understand about norcal is, when the dotcom bubble popped and unemployment shot up, why real estate didn't even blink. Back in 1990 or whatever, when the aerospace industry took a crap, real estate in socal was heavily affected for many years.
Click to expand...

It's the low interest rates. There were a lot of people who didn't get laid off, were making descent money, but were still renting. They finally decided to jump in and buy something with interest rates at the level they are at.
 
Originally posted by: SuperTool
Wait till interest rates go up, then it'll be a buyer's market. Of course then the interest is gonna be high 😉.
Click to expand...

I used to say this also, but it's not clear to me what mechanism would cause mortgage rates to go up. They're not tied to fed rates and rates haven't really changed much.

Besides, if rates do go up and prices do fall, mortgage payment will roughly average out to about the same anyways.



 
Originally posted by: SuperTool
Originally posted by: OS
Originally posted by: LordSnailz
Well for NorCal it's definitely a seller's market ... there are multiples bids ... anywhere from 5-20 offers after the 1st weekend of listing ...
Click to expand...

What i don't understand about norcal is, when the dotcom bubble popped and unemployment shot up, why real estate didn't even blink. Back in 1990 or whatever, when the aerospace industry took a crap, real estate in socal was heavily affected for many years.
Click to expand...

It's the low interest rates. There were a lot of people who didn't get laid off, were making descent money, but were still renting. They finally decided to jump in and buy something with interest rates at the level they are at.
Click to expand...

My other guess is that people were still able to sell off their stocks before they became completely worthless and then moved the money into houses.

 
Ideally, wait for 3-5 years and then it will be a buyers market.... If the US doesn't fix the massive trade and budget deficits, it will lead to a continued devaluation of the US dollar vs other major currencies. Foreign governments and investors will stop buying US debt. This leads to downturn in the economy, which leads to people not being able to pay morgages and loosing their houses. This will mean tonnes of less expensive houses on the market. So many people have gotten morgages right to the limit of what they can afford. In acouple years when the morgage has to be re-financed, they might not be able to afford the payments. There is alot of consumer debt right now, and if the housing market bubble does pop there is going to be alot of broke people, and alot of cheap (nice) housing.
 
Originally posted by: OS
Originally posted by: LordSnailz
Well for NorCal it's definitely a seller's market ... there are multiples bids ... anywhere from 5-20 offers after the 1st weekend of listing ...
Click to expand...

What i don't understand about norcal is, when the dotcom bubble popped and unemployment shot up, why real estate didn't even blink. Back in 1990 or whatever, when the aerospace industry took a crap, real estate in socal was heavily affected for many years.
Click to expand...

The Norcal market for commercial RE tanked. I know a lot of companies that have empty buildings on their books they are trying to get rid of.
 
Originally posted by: Siddhartha
The housing prices in the NYC metro area are still going up.
Click to expand...

The CEO of one of the largest RE brokers in NYC said NYC RE prices will go up 25% in 2005.

In the 1 1/2 I've owned my house in NJ, its gone up about 50-60%.
 
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