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  One of the most widely asked questions these days is whether the real estate market has hit bottom. By the time we actually find out, the market will already be on the upswing and seller’s concessions will be the first thing to disappear. Hopefully at that time, interest rates will be as attractive as they are now. Let me point out a few facts and give credence to the idea that now is a great time to buy a home. This is especially true for those people who were priced out of the market when values hit their highs and are still renting.  

On April 15, 2008 the San Diego Union reported that the median price for a home in San Diego was $395,000, the lowest since November 2003. This is down from the peak of $517,000.  The Union Tribune reported on April 17^th that the average rent for apartments in San Diego is $1,378.  This is a 0.6% increase from the fourth quarter of 2007 and a 3.7% increase over last year’s 1^st quarter.  In other words the price of a home has dropped and rents are increasing. 

It seems to me we are close to the point where buying makes more since than renting.  Another interesting note is that our business is increasing. We are pre-approving more buyers and closing more sales. Real estate agents are telling me they are seeing multiple offers for desirable properties and that pending sales are increasing. The reality is that we have seen prices decline 31%, sellers are paying for all or a portion of the buyer’s closing costs, interest rates are attractive and FHA and VA financing are once again making it possible to buy a home with very little money down. During my 24 years in the lending industry, I have discovered that the real estate industry can “turn on a dime”, as I mentioned previously, seller’s concessions are typically the first thing that we see disappear. That alone can be the difference that prevents renters from buying. It is hard to imagine that anyone who is looking to buy and anticipates living in the home for several years can go wrong. When people recognize this and decide to take action, we will see this market turn around. Hopefully you or your family, friends, co-workers and/or clients who are trying to time the market will not be left “sitting on the fence”.  If there is anything I can do to assist you, please let me know.

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 including special loans for first time buyers