Catch the Wave?

Here we are in May already! Time flies quickly by! The stock market is doing better this week, Chrysler is going Bankrupt and housing sales in Irvine has been hitting its stride.

You may have heard many people describe real estate as cyclical but I would compare the ups and down of real estate to catching a wave. It seems like you must “catch it” at just the right time! We have already seen a huge inventory of bank foreclosures come and go. There are very few of these right now and who knows if there will be another “wave” in the future. The optimal time may or may not have passed but it is still a very “good” time.  Inventory of homes for sale in Irvine is disappearing at a very fast rate. Albeit mostly in the under the Million price range it still is amazing to see homes so quickly disappearing fromt he mls “active’ list! The governement is offering incentives and interest rates are very low. How long will they stay this low-You might ask? Many economists are predicting we are getting close to the end of the recession and now they are worrying about inflation. This usually follows a recession! Some people mistakenly believe that when interest rates go up-prices go down. But sadly that is not the case! History has shown us double digit interest rates on mortgages when the prices were rising. In fact, since it is “inflation” it makes everything rise! If youi would like to hedge your bet against this possibility you would do well to buy real estate. Of course paying cash would be a great hedge against the future but if not, finance with a 30 year fixed low interest rate and get ready to ride out the next wave. 

Remember, no one has a Crystal Ball so everything is subject to interpretation. There are many indicators you can use to time the market and interest rates, supply and demand, decreasing foreclosures, are just a few. Several areas in California are still leading the foreclosure list including Riverside/San Bernardino and some other counties like Merced. But unless you are interested in buying in those areas you would do well just to look at the “local market activity”. Real estate is always LOCAL. If you would like more information on buying a home today please give me a call at 949-275-6544 or just send me an Email  . You can visit my web site and view all the homes for sale in Southern Orange County! I look forward to hearing from you!

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