Buyer’s in today’s market are faced with a dilemma, should they buy or should they wait? With historic lows in the mortgage market and prices that as reported hit bottom around July of ’09 buyer’s are in a position to capitalize on the financial meltdown of our economy. Let’s face it everyone wants a deal and as someone once said “hog’s get fat, pig’s get slaughtered”…is it time to take the plunge and capitalize on the market or sit idle on the sideline? Many buyer’s still believe that prices will fall further even with market data that supports the opposite (obviously depending on the localized market). Buyer’s point to the outstanding inventory of foreclosures that have yet to hit the market, and in all honesty I don’t think that anybody really knows the true numbers or the impact of those homes when (and I do say when not if) they hit the market. If they are slowly released and allowed to be purchased the impact may be slight. If they are released in mass, the market may take another hit. The fact is that banks are in business to make money, and since for all intents and purposes, the foreclosed on home is an asset of the bank, why would they further depreciate their asset by releasing in mass their inventory and driving down prices.
It still comes down to the question of should a buyer buy? I believe the answer is yes. If they find the right house for themselves then take the leap of faith. My family has been in LA since the 1940’s and with each and every market downturn, there has been a rebound with prices rising to levels above what they were before.