Dataquick has reported the Bay Area real estate market was a tough one last month. Sale are down to a decade low. Buyers a still waiting for home prices to come down and sellers become increasingly more open to price reductions and getting serious about selling their homes. In certain counties the news is troubling as inventory still sits and buyers wait on the sidelines. It is just inevitable we will continue to see a slowdown when we have such a discrepancy between property values compared to rental income. Some people will say we are at the bottom of the market, be weary of such bold claims. We are at a slow seasonal point in the market, but buyers are out looking at homes. Are they writing offers, well some of them are and some are getting great deals on property.
This market you will have to look at the pros and cons, look at your holding and exit strategy. If you are looking to be in a property for a long time then take advantage of the low interest rates and make sure you get a loan that makes sense. A 30 year fixed is a great option if you are holding for the long term, 7 years plus. See if you can get an assumable loan so you can pass that loan to another buyer when you sell. That will help you generate a higher sales price on the resell. The higher monthly payment will be worth it since the differnce between a 30 year fixed and a 5year ARM is less then a point.
If you are looking to get into property for just a short time, make sure you buy into equity. This guarantees you that if the market declines in values, then you are not taking any losses on the cash equity you put into the home. Remember, typically the lender will not take it in the shorts, you do. And the losses come from the equity you have in the property. So buy smart and buy into equity.
For more information to buy or sell in this market, call Jeff Marples at 415.336.9695. or go to www.propertyinsanfrancisco.com. Read the entire article here: http://www.dqnews.com/RRBay0107.shtm