Great Article in the Wall Street Journal by CYRIL MOULLE-BERTEAUX.
I don’t think we are there yet but it is almost time to buy if you can get it for the right price and the right deal.
One thing is for sure…it is a great time for first time homebuyers – especially with the use of down-payment assitance programs (DPAs)
May 8, 2008 at 11:32 am |
You’re right. Now is the time to buy if you have the money.
May 9, 2008 at 3:41 pm |
Hello All,
The current MLS inventory in San Diego is about 20,000 Active listed properties, condos and homes.
Look at the following stat from http://www.foreclosure.com
SAN DIEGO County Listings
Foreclosures: 6,175
Bankruptcies:2,488
Preforeclosures:14,249
Look at the amount of pre-foreclosures. More than double the current inventory. 70% of these pre-foreclosures will become Bank Owned properties.
This year and 2009 will be the best year to buy properties. Someone that buys 10 properties in the next two years will be able to retire in the next 10 to 15 years. Some areas have seen huge price reductions, you are practically getting the land almost free at time of purchase.
One of my clients just purchased a home for $145,000 in Logan Heights. 3 bedroom 1 bath. He will remodel it and make it a 3 bedroom 2 bath. Probably invest $40K. He will likely sell it at $299,000. $100K profit in a couple of months.
A Realtor not focusing on this market for the next three years will not make any money unless you are already selling in the luxury market ot DPA programs for first time home buyers.
Some REOs are getting multiple offers.
You should pitch to every client an REO property. Bank Owned, Bank Owned, Bank Owned!!!!!
1) Buy below the median home price.
2) Buy in Population Growth areas. California will likely hit 40 Million Residents in the next couple of years.
*San Diego continues to grow.
*Chula Vista is growing rapidly. Possible home of the Charges and new convention center with a hotel (2000 rooms).
Approaching 1 Million residents. Hardest hit market. Up to 50% discounts from peak.
*Downtown should double in population in the next couple of years. Destination place. Lowest hotel vacancy after Las Vegas.
3) Buy were residential rents are increasing. Practically all of San Diego.
4) Rates are still at historic lows.
The first wave of option arms will reset this year. If banks are not willing to forgive debt or freeze payments then most of these will become REOs in the next year. That means more REOs that will cash flow with 20% down or less.
If you want to buy an REO property or make money by referring a client then let me know. We have over 100 bank owned properties and growing!!!!
Let’s make some money!!!!
Roberto Mercado
Broker/Realtor
619-990-4946