We have all heard the words “Change” and “Challenge” a lot lately, particularly in every political campaign out there … well, they are good ones to apply to this year’s real estate market.
There are at least 3 good reasons we can think of that would indicate that this next year will be an awesome time to buy and maybe a good time to sell.
1. BARGAINS - Over the past several months we have seen any number of amazing (and cost effective) “bargains” on the market, particularly in Contra Costa County. There are motivated sellers who are aware of the market, aare hot to take their equity and get their properties sold. They are pricing their homes aggressively. Others are bank REO’s (real estate owned).
2. LOW INTEREST RATES - They are again most attractive with conforming loan amount (up to $417,000) at 5.625% and fixed Jumbos at 5.25 (with 1 point) for 7 years - not bad! * As of Jan. 18, 2008. They may well go lower yet
3. TAX BREAKS - Don’t forget, renter don’t get tax breaks
You are loosing money while you wait for priced to drop and while the pundit and even we agree that in some areas there may be more free fall ahead, when you do the numbers, given today’s interest rates, your ability to negotiate and your tax break, as Cindy says, “The planets may not align like this again for a long time.” As Barbara says, “Don’t forget if you’re buying a house to live in, it is a long-term investment which is primarily a place to hang your hat; a place to call home.
On the selling side, since 1998, your value is at least double or more. The median price in Berkeley, for example, in 1998 was $182,175 and in 2007 was $600,000. View Berkeley Home Sales Chart. In Richmond in 1998 the median was $137,000 and in 2007 was $440,000. View Richmond Home Sales Chart While selling this year may take longer than in the past and may not net you the same value as at he height of the market, it can be done and chances are your home has still been a good investment over the last 10 years. Call us to discuss your particular plans. To view other City’s median price charts, click the respective link below.
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