When the Real Estate Market Bottoms out - Buy Now

Are you a buyer waiting for the “bottom” of the market? First of all, how do you know when we’ve hit “bottom”? We don’t. We only know the bottom was reached when prices start coming back up. Then it’s too late. And what makes prices start to increase? A lack of inventory sufficient to take care of the demand (basic supply and demand principle). So really, isn’t it better to buy when the interest rates are low, the inventory is high (lots of choices), and there are people who are willing to take less than the market might otherwise bear?

So what is the prediction? Economists are saying prices in Riverside County might drop 7-9 percent. So, if that’s true, if you were to buy today, offering 7-9 percent less than the market value of a house that you like (because there are so many to choose from), you are likely buying at the bottom, right? How about if you offered 10 or 11% less? Now you’re getting a screaming good deal. Those deals are out there. We have recently seen banks accept offers as much as $100k less than listing price.

Buyers, you may need to make a few offers before you find that desparate seller or bank willing to accept a low offer. But what’s the harm in trying?

When asking people how do they know when the market has hit bottom, the typical response is the newspaper. However, do you follow the newspaper to make stock market decisions? The typical answer is “no, by the time it’s in the paper, it’s too late”. That’s also true of real estate. Don’t follow the newspaper, follow a real estate professional. We know the real story. Cha-ching!