"Buyers Bounce Back"
March 30, 2009
"Buyers Bounce Back" was the front page headline of the San Bernardino Sun newspaper on Saturday, March 28, 2009. For those of us in the real estate profession, the headline was a welcome change from the normal doom and gloom of the media for the past several years.
Whether the improvement in the volume of transactions is due to the normal recovery in a real estate cycle or whether it is the result of the federal government stimulus, may be a tough call. The bottom line, however, is that in the Southern California Inland Empire real estate market, buyers have returned from the sidelines of the late 2007-2008 market.
As I prepare to research and post the data for the month of March, I believe that home sales will continue to be significantly greater than they were a year ago. I anticipate that as 2009 progresses, the increased percentage of sales year over year will decrease, but the volume will remain high.
As the Sun article states "The market is sparked by bargain hunting in affordable neighborhoods, the report (from DataQuick) said. And normal supply-and-demand forces are starting to build up."
Added to the affordable prices of homes is the $10,000 tax credit for the purchase of new construction and the $8,000 tax credit for first time home buyers, there are certainly real incentives for purchasing a home now. Interestingly, our experience has been that it is a price driven market and that the main incentive for buyers is the recognition that homes are a bargain prices. True, if you already own a home you will have to sell for less than you might like, but you can also purchase your next house for less. With the government keeping interest rates low and shoring up lenders, this is a very opportune time to be in the real estate market.
"Buyers Bounce Back" was the front page headline of the San Bernardino Sun newspaper on Saturday, March 28, 2009. For those of us in the real estate profession, the headline was a welcome change from the normal doom and gloom of the media for the past several years.
Whether the improvement in the volume of transactions is due to the normal recovery in a real estate cycle or whether it is the result of the federal government stimulus, may be a tough call. The bottom line, however, is that in the Southern California Inland Empire real estate market, buyers have returned from the sidelines of the late 2007-2008 market.
As I prepare to research and post the data for the month of March, I believe that home sales will continue to be significantly greater than they were a year ago. I anticipate that as 2009 progresses, the increased percentage of sales year over year will decrease, but the volume will remain high.
As the Sun article states "The market is sparked by bargain hunting in affordable neighborhoods, the report (from DataQuick) said. And normal supply-and-demand forces are starting to build up."
Added to the affordable prices of homes is the $10,000 tax credit for the purchase of new construction and the $8,000 tax credit for first time home buyers, there are certainly real incentives for purchasing a home now. Interestingly, our experience has been that it is a price driven market and that the main incentive for buyers is the recognition that homes are a bargain prices. True, if you already own a home you will have to sell for less than you might like, but you can also purchase your next house for less. With the government keeping interest rates low and shoring up lenders, this is a very opportune time to be in the real estate market.
posted by shirley harry at 8:10 AM
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