October 13, 2006
Are there going to be any better deals?
| tom wrote this at 11:17 am on October 13, 2006: | Email This Article To A Friend |
Over the years, the price of real estate in the Coachella Valley has fluctuated with the season with prices peaking during the winter/spring “season” and then leveling off in the hot summer months. I was told, when we bought our house, that the best deals could be had at the end of the summer when desperation was a seller’s motivation. In a typical real estate environment, this seems very logical and understandable.
But during the last couple of years, when interest rates were unbelievably low, all past history/trends went out the door. We experienced strong sales year round and last year as the interest rates started to rise, our business was very strong in the summer months, as nobody wanted to miss the great deals. It was a sellers market and the sellers were calling the shots.
This past winter/spring, as the state of our economy became less certain and interest rates rose, the national real estate market appeared to soften as we changed from a “Sellers” market to a “Buyers” market. In this Internet age, buyers are so much better educated then ever before that they are very aware of exactly what the market is doing. This summer selling period could be described as “soft” when compared to recent years past as buyers can get on the Internet, search the local Multiple Listing Service and track home prices on a daily basis if the desire. As in any softening market, Coachella Valley home prices have been coming down, not as much as other parts of California or the country but dropping never-the-less.
At some point, the buyers will decide that the prices are as low as they can reasonably expect and that now is the time to buy. We have been watching a local developer lower his prices all summer long with no results - no results until last weekend. It would appear that the market could be changing again.
What would appear to be happening is as follows:
1. Our national economy is very strong and it would appear that it will remain that way.
2. Interest rates have leveled off and are actually dropping in several areas.
3. The summer “bargain” season is nearing it’s typical end.
4. Baby boomers are not going away and are continually getting closer to retirement age.
What does it all mean?
Can you say, “Pent up demand”?
1. We probably won’t be loosing our jobs in the strong economy.
2. Mortgage rates are stable if not getting lower.
3. The real estate market could begin shifting to the seller in the very near future
4. The real estate market for the “soon to retire” market remains strong
5. Home prices in the Coachella Valley remain the second lowest home prices in California.
The “Bottom Line”:
Now is the time to lock in your place in paradise!
Filed under: Real Estate
No Comments
