Abraham Lincoln said those words...and how true they are today in the 21st Century as they were in the 19Th.
The real estate market in the Hemet - San Jacinto Valley, located in South West Riverside County in the Inland Empire Region of Southern California is not a place to wait if you want to find a deal on a bank owned home anytime soon.
There are several variables at work, which I believe will change the market, bringing the prices to the lowest point yet, in our current economic disaster.
The first element is undisputable in that our market will always began to slow at the end of July. The ‘traditional season' ends mid summer so that families can be relocated prior to the beginning of school. No one want to plan on a move in October or over the holidays - just not a good time to pack up and move. Typically the selling season gets shorter as the summer evening start earlier and earlier. The flip side is that things start to pickup in the Spring - typically with the Easter Holiday (Spring Break).
The second element to my thoughts on why the market is still headed for another downswing has to do with the current federal $8,000 tax credit the government is offering first time home buyers (FTHB). In order for a home buyer to take advantage of this opportunity, among other requirements, they must CLOSE ESCROW on or before November 30Th, 2009. In reality, this means they must be in escrow - with a signed and accepted offer - no later than September 30Th. Yes, there will be deals that get done after that - but not many! And those that go into escrow after that may be disappointed as the average escrow in San Jacinto CA right now is 56 days.
Then there is the speculation of the current 90-day moratorium in California which is scheduled to expire on September 15Th, 2009. The concept is this is what has held properties off of the market during this prime buying season. Most, if not all bank owned homes that entered escrow in the last 30 to 60 days did so with both multiple offers and offers above the asking price.
So, the principals of Supply and Demand have been at work - limited inventory has raised the prices (not necessarily the values) and soon we will see the lack of demand due to the end of the season and the expiration of the $8,000 tax credit at the same time that the market could potentially be flooded with new inventory of bank owned homes across the Hemet - San Jacinto Valley.
So, in conclusion - if a first time buyer want to take advantage of current market conditions they need to hussel. The Real Estate Investor, however, should be patient as I believe we will be hitting our lowest price point come February or March of next year...just before the traditional home buyers start emerging from the sleepy winter.
Blessings to all who read,
John Occhi, REALTOR®
Hemet - San Jacinto Valley
Servicing THE REO Needs of Asset Managers, Servicers, Banks and Lending Institutions in the Hemet - San Jacinto Valley, Temecula, Murrieta, Winchester, Wildomar, Menifee, Sun Valley, Perris, Moreno Valley, Romoland, Homeland, Nuevo, Banning, Beaumont, Cherry Valley, Yucaipa, Redlands, Mentone, Loma Linda and throughout South West Riverside County and The Pass Areas of The Inland Empire in Southern California. If you are a buyer, investor, first time home buyer or are just interested in REO real estate, please contact us at the above phone number.
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