No surprise in this headline.
I meet with three sets of buyers this weekend. One question that gets asked a lot is, “is this a good time to buy?’.
Everyone’s fear of buying today, after the run-up in prices we experienced the last 18 months is that, they are buying at a high, and another crash is imminent. Anything is possible but what’s difference between the last run-up in prices and today is that the last one was fueled by funny money. The market stopped turned off the funny money spigot the market collapsed. Today’s borrowers are buying with a real ability to repay their loans. They only way they’ll default is if the economy (bay area economy) starts to tank and we have large scale unemployment. The last time something like that happened was the dot.com bust of 2000-2001. It was short lived but tech recoveries tend to happen fast but tech advances tend to be fast.
I predict that prices at the end of the year will be higher than at the beginning of the year and that’ll inventory will increase as we progress into the peak selling season until July and then start to reduce again.
If you plan to buy, buy sooner rather than later.
From DS News
The Mortgage Bankers Association (MBA) released its National Delinquency Survey Thursday, reporting the seasonally adjusted rate for delinquent mortgages is 6.39 percent, the lowest level since 2008. The figure represents mortgage loans for 1 to 4 unit residential properties, and takes into account all loans outstanding at the end of the fourth quarter of 2013. »READ MORE
- Sunil Sethi
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