We all know that the market continues to remain flat. Flat with the exception of the REO / foreclosure market. Those markets continue to rise in activity as fallout from negative amortization loans, adjustable rate loans and other sub-prime market loans continues.
I see many that attempt to mirror current market conditions with those from the late 80's and early 90's but....THERE IS NO COMPARISON.
We saw, in California at least, a mass exodus of major employment e of real estate. Bad loans from greedy "lenders" have created a unique "opportunity" that we have never experienced. The U.K. experienced similar fallout in the early 90's and was compounded by the economic conditions. Still, not what we are experiencing completely but, "bad" loans compounded their problem and could be a good indicator of things to come here. The U.K. already had their cycle of negative amortization and other "creative financing" methods and have rebounded to the point of having some of the most expensive real estate in the world.
Quick Government intervention through regulation, legislation and investigative action caused a rather quick turnaround and rebound of their real estate market. Legislators here should take a long hard look at what has happened here. For those that want to debate the integrity of lending here need to take a long hard look themselves. The fact is, good loans, designed for the right people, for the right reasons, were sold to individuals with no reason to have such loan products. Without immediate intervention through legislative action, we will see no rebound soon. At the very least, licensing regulations must be reviewed and re-vamped entirely.
The majority of potential home buyers have been tainted by the past few years constant barrage of lender advertising with statements like: "Buy a $500,000.00 home with no money down and only $800.00 per month"! We have created a market of consumers who do not understand that 2 and two do not equal 1. Lenders have played a key role in fleecing the home buying public. Uneducated in the ways of lending and relying on the integrity of unscrupulous lenders to lead them down the right path and were lead instead to eminent doom. Blame it on the buyer who put all of their faith in their "friend the lender" but, lenders should have, and be accountable for, their fiduciary responsibility to their client. A responsibility that simply does not exist.
The good news to all of this.....The California economy is NOT spiraling downward. Companies are returning to this great state and have made the realization that California is THE place to be. It may cost more to business here but, being the 5th largest economy in the world, does not come without costs to those that wish to live and do business here.
South West Riverside County, California, in particular, is experiencing tremendous growth with no end in sight. Recent predictions from the California Association of Governments predicts Riverside Counties population doubling to over 4.7 million residents.
Although supply is near an all time high, the demand is still there, churning below the surface. New buyers enter the market each and every day. California's rental market is booming. All of these potential buyers are still out there. Pent up demand will be the key phrase in the very near future. A reverse bubble is being created and will cause an explosion of the market. Education and regulation are key to determining when this will happen yet, mark my words, it WILL happen. We will experience appreciation and an general explosion of the market that will surpass what we saw just a couple of years ago. Read the writing on the wall if you can see it through all of the "gloom and doom".
Even with all of the current inventory, we will have a housing shortage in California over the next 10 years. Population growth estimates alone indicate that we will have a 20% or more shortage of housing. DEMAND and not enough supply.
Great news but....when? It will depend on what...and when....our legislators take action. Recent indictments of Prudential California Realty owners and agents for over 40 million dollars of real estate related fraud is bound to spark even more, and larger fallout in the real estate arena. A good start yet, without regulation, will only be a small step towards reform. A step none the less and a step in the right direction towards the markets eminent rebound of the California real estate market.
Will you be ready?
Are you an investor? Do your research and buy right. Make an investment in the property you buy and you are certain to experience returns beyond your expectations. No "quick flips" for now. Utilize the skill of a real estate professional rather than your friend the teacher, shopkeeper or computer whiz come real estate agent. Use the skill of a dedicated real estate professional to locate the right property and plan to hold for the long term.
Are You a Home Buyer? For home buyers, the same applies. There are some great deals to be had out there right now. Choose the right professional. A professional whose only focus is real estate. Steer far clear of agents that are also lenders or push services of their liking as a way to make more money for themselves. The majority will not have your best interests at heart. Don't fall for empty promises and, above all, find a REAL loan if needed. If you cant afford it now, you, in all likelihood, will not be able to afford it in the future. Buy within your means, choose the right professional and you are sure to succeed in the real estate game.
Caveat Emptor! (Buyer Beware) There are a ton of slick operators out there ready to take the unsuspecting and uneducated buyers and "investors" money.
I would be happy to discuss your specific real estate needs and help you develop a plan to get you there. I am a California real estate Broker and Realtor who knows the Riverside County real estate market and can provide the tools you need to make an informed and intelligent decision about buying property in today's market. You have noting to loose by picking up the phone and calling me at (951) 634-4464. With no obligation, I will help you develop a plan to help you achieve your real estate goals.
Are you a real estate professional? We are a small, non-franchise real estate corporation with international exposure and national recognition. We have the ability to make immediate change as the market changes. We can help you truly excel if you have a true desire to do so. We do not make empty promises or lure agents in with unrealistic claims. If you are a true professional, call me to discuss your future in real estate. Even if you are not considering a change in broker, I would be happy to provide you with tools that will help you achieve unparalleled success regardless of market conditions.
Have a great day!