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Long Beach Housing Market

Forget the bottom - worry about getting a loan
January 24th, 2009 11:28 AM

I think this bottom question will haunt me until we start to see some appreciation.  I still gets calls from people asking the question - is it the bottom yet?  I can't be any clearer about my position on this.  I'm not a gambler, a soothsayer or even a good predictor of the future so I'm the wrong person to ask.  If was any of these things I would be rich and retired by now!  But I will tell you that we spend way too much time and effort trying to second guess when we will hit the bottom.  At the beginning of 2008, all the economists in the country that are tied to real estate predicted the bottom would come midyear.  That period came and went.  I've heard the first half of 2009 to the end of 2011.  Sometimes the bottom isn't what we should be looking for but rather when is the time right for me to buy!  Your circumstances, decision to buy or sell should be based on your personal needs, not some artificially set bottom of the market.  If the prices drop another 5% on a half million dollar home that's only 25,000, amortized over 30 years, that's at current rates $134/mo.  Sometimes you can negotiate that amount.  More importantly would be will interest rates be below 6 when you want to buy. A 1 point swing in costs or rate could cost you more than this.  So I say to you all, it is a great time to buy. There are willing sellers, distressed properties and the lowest rates in 40 years, if you have a need to buy or to sell and buy again, it's a great time don't let the media fool you.

I'm hoping we can put an end to this question.  I believe our efforts would be better spent thinking about the interest rates and how people can get qualified for a loan.  That's actually the hardest part today.  People that have credit scores well into the 700's, have been on their jobs for a long time have good down payments and have bright futures can't qualify for loan.  Now that's just crazy.  Until the lenders let up a little on the qualifications we'll all be frozen in time and that's not good for anyone or the economy. 

Let's stop the worry about the bottom and start questioning when will any of be able to qualify to purchase again.


Posted in:General
Posted by Heather Burke & Sarah Ireland on January 24th, 2009 11:28 AMPost a Comment

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