Conflicting News Stories – What to Believe?
Some stories make it appear that real estate, especially in the Bay Area, is rebounding. Others talk about what is going wrong. Where does that leave you as a buyer or seller needing to make important decisions?
I just read “Silicon Valley Real Estate: the Bidding War is Back” in the San Jose Mercury News, which discusses the local market. Meanwhile, a Fortune Magazine article, “As Homeowners Head ‘Underwater,’ Another Housing Crisis Looms,” says that almost half of U.S. homeowners with mortgages will have negative equity by 2011
To a large extent, what you do depends on what you believe is really happening. As an example, one of my buyer clients told me the other day she is getting concerned that so many properties in her price range are selling quickly with multiple offers. In addition, she worries that she may lose out when interest rates rise.
I advised her not to allow fear to dictate her actions; that is what causes people to panic and make the wrong decision. Her best bet is to watch and wait for something that makes sense. (Get more info on this by reading my latest article, “Learn from Recent History or Pay the Price”)
Right now, Bay Area sellers of good properties in desirable locations have a window of opportunity and some leverage. Many hesitate because they think the “good old days” may return to real estate and they will be sorry they sold “so low.” Much depends on your personal situation and need to sell. (See my previous article, “Is Waiting to Sell the Best Idea?”)