I've heard wildly different predictions about when the market will hit bottom. Some think it is here now, some think it will be years...but consider this:
Bank REOs (foreclosures) and Short Sales are now being listed at 2001-2002 prices in some instances (that’s 2-3 years before the 2004-2005 bubble), especially in the least expensive price range of the market around $130,000-180,000 . That's 6-7 years ago! "Regression to the mean" has already happened and in my opinion there’s been a slight over-correction. How much further can they slide- back to 1999?
Buyers, with a modest down payment, can now pay almost the same to own as they would to rent. Investors with a minimal cash investment can cash flow their condo rentals. That hasn't happened in San Diego for years!..and it won't continue for long.
MY PREDICTION: There are only so many unbelievable deals out there, and many more people looking for them than are available. The biblical flood of foreclosures predicted by many Chicken Littles may end up being more of a flash flood warning (with very heavy rains) as the numerous governmental interventions guard against overall economic recession.
MY ADVICE: Buy an REO or short sale now...hold for 4-5 years...sell...retire to Cancun and live like a sultan!
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