Real Estate Information

There was speculation that the Federal Reserve might actually lower the interest rates to keep the real estate market from declining further.  Economic conditions such as gas prices, unemployment, inflation and the real estate foreclosure market are all factors being considered.  I think it was necessary to raise the rates to stop the home price increase enjoyed by so many for the past sveral years.  I imagine the fed pushed the rate to the top to watch the effect and then will back it off a notch soon.  The market is usually very good during the spring and summer and this year is no different.  I think that if the fed pulls back a little, it will be in the slow time of year - possibly August but more than likely at the end of the year.

Release Date: May 9, 2007

For immediate release

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.

Economic growth slowed in the first part of this year and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to expand at a moderate pace over coming quarters.

Core inflation remains somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.

In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.

A beautiful weekend here in San Diego!  This is the hottest time of the year in Real Estate also. With the school year coming to an end, families want to coordinate the best time to make their moves.This weekend,  I accompanied a buyer around San Diego, Carmel Valley, Poway, Scripps Ranch and Carlsbad.  There were plenty of open houses and plenty of people out to buy homes.  The analysts state that we are finally at the bottom of the market and buyers confidence is up.  If you are planning to buy a home, now is the time to do it.  There are great deals out there and great homes available.  With the inventory of homes high, there is much to choose from.

If you are planning to sell your home, there are several factors to consider.  Staging your home, de-cluttering, letting the light in and creating great curb appeal are a must.  I am seeing many sellers over pricing their homes based on upgrades.  There are things you can change about a home and things you cannot change.  Location, floorplan, views, lot size and lot configuration cannot be changed.  Upgrades, paint, carpet etc can be changed.  Upgrades begin to lose value as soon as they are installed.  What may be an upgrade to you, may not be to a potential buyer.  Upgrades are valuable but not necessarily bring a higher price.  they will increase the interest in your home and the likelihood of a sale versus homes without upgrades. 

This is why choosing the right Realtor is important.  Choosing a powerful company is imperative.  You will soon notice the discount brokers and "mom and pop" shops going out of business. 

As a seller, it is important to listen carefully to the Realtor when pricing your home.  A good Realtor will give you and honest value to get your home sold.  If it sounds too good to be true, it probably is.  Many Realtors are inflating comps to get the job of selling your home and then the home sits with very few showings and no offers.

Take the time to do it the right way, research homes in your area, go to open houses to look at the competition, look at your home through the eyes of a buyer.

As seen today in the San Diego Union Tribune (May 1, 2007)

(link is http://www.signonsandiego.com/news/metro/20070501-9999-1n1forecast.html)

The housing market is now at the bottom - so buyers, it is time to start looking.

The economic rule is to buy low and sell high.  You may think that you have lost the opportunity over the past few years to make money in real estate or just the opportunity to buy.  However, historically, these cycles of peaks and valleys show a long terms effect of upward swing.