Pin The Tail On The Bottom Of The Calabasas Market
October 9th, 2007 Categories: In The News Calabasas
I have been working with several would be home buyers here in Calabasas. All of them feel that they should wait until the housing market is at the bottom before they buy a home. Id like to share my explanation of “the bottom of the market” and how it will effect your buying decision.
This is a graph that represents the Calabasas housing market. The left side of the V represents the market going down, the right side represents the market going up, and of course the bottom of the V represents the bottom of the housing market.
If I asked you to plot on this graph where you thought the housing market was right now …
… would you pick this spot or something close?
So you think that the market is going towards the bottom? OK, so if the market isnt at the bottom yet, how will you know when it does hit the bottom?
How will you know when the housing market hits the bottom?
You wont know that the housing market has hit the bottom until prices start to go back up. It will be difficult to be sure that the market has hit bottom for a few months. Its not a sudden shift, it is a slower more gradual shift. Youll be able to tell that the market has turned when prices reach this point (green arrow).
What is the difference in housing prices between the red arrow and the green arrow?
Not much… but there is a difference and it is major.
If you buy a home on the left side of the graph, it is considered a buyers market. You would be more likely to get concessions from a seller including price reductions, repairs, or maybe even personal property.
If you wait until the market turns and you buy on the upswing, you and every other buyer that has been waiting for the market to hit bottom will be bidding on the same house.
There really is not better time to buy a house than now for a few reasons:
- I am suggesting to each and every would be Calabasas buyer to take a good look at the above examples and decide for themselves what percentage the prices will have to drop before they think housing prices have hit bottom and offer that price. For example, if you think that prices will go down another 5%, then submit an offer at 5% below the asking price.
- For more information on how to determine when is a good time to purchase a home in Calabasas or a detailed market analysis on the different Calabasas neighborhood sales, please call me at (818) 652-2937. I track Calabasas sales, monthly, and weekly by neighborhoods and have daily information on closings so that you can stay on top of our changing market.
This entry was posted on Tuesday, October 9th, 2007 at 1:44 pm and is filed under In The News Calabasas. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Leave a Reply
You must be logged in to post a comment.
Copyright © 2007 - 2007 Blog Calabasas Agent Login Design by Real Estate Tomato Powered by Tomato Real Estate Blogs
Tracy, what a wonderful analogy! With all the dismal news I hear about the real estate market, I also know that there are still some very strong niche markets. Second homes are strong and certain neighborhoods in most cities and suburban areas are still strong. Too many people are willing to accept the negative press and not look beyond it. I am beginning to see more good news than bad, and that may be signaling that the end is near. Who knows?
Wow, what a great way to teach the state of the market…very visual. One of the best posts I have read today! Love the look of your blog.
Tracey – this just shows why you are the Calabasas California Real Estate expert I turn to. This is news that local Calabasas home buyers can use! – Cyndee Haydon
Joanne, The only way to tell if the market is changing is to look at days on the market, number of homes on the market, and sales price to list price. watching this info closely will give an indication of what’s just around the corner. We have to watch these trends closely.
Jennifer, Thanks for the compliment. We’re always looking for new ways to educate our buyers and sellers.
Hey Cyndee, always nice to see you, thanks for stopping by.
This is an excellent blog. I like the way you explained the bottom of the housing market with the graph. Great job!