Tuesday, August 28, 2007
Bad Real Estate Market or What?
Please consider that there is always a bad real estate market AND a good real estate market at the same time. There is always an advantage position in every market. If there is low inventory and many buyers (seller's market) - then it's great to be a seller and not so great to be a buyer. In today's market - it's not so great to be a seller and very good to be a buyer. If you have the ability to play the side of the fence that is attractive at any give time, do so. I just sat down with a client yesterday who owned a fourplex in San Jose. We decided that it was not the time for him to sell. It was definitely a time for him to buy. Prices are down approximately 15% in that fourplex neighborhood in a year and rents are up maybe 10% in the same year. The trend for both those indices will remain the same for a while. Those who make strong, long-term purchase decisions this year amidst all the negativity will do very well in the medium to long run.