Hello Everyone,
The market comments and analysis will be very brief this week. Due to the timing of the Holidays this year, there was really not much activity in the Marin real estate market for the first week of 2008. Not much during the 2nd week either. The Hotsheet stats tell us that there were 55 new SFR listings and 15 new condominium listings between January 9 and January 15. SFR and Condo inventory both increased slightly, to 568 and 236, respectively. Overall, all SFR and Condo price segments are either buyers' or strong buyers' markets, with the exception of the SFR $2million to $2.99million segment which, at 29.8% in contract, is well into sellers' market territory.
As I mentioned previously, there are several anticipated events in the financial markets that will have an effect on the real estate sales environment. The Fed meets on January 29 to decide about a potential rate cut. Many people are betting that they go for a 1/2 point reduction. Mortgage brokers are telling me that rates right now are excellent and that this possibility may have already been priced into current loan rates. This means if there is a smaller reduction, rates could increase.
Now is a great time to lock in a low rate and negotiate a deal on a great home.
President Bush and Congress are also discussing a tax cut of some sort as an economic stimulus, which would affect people's "psychology of wealth", and therefore their buying habits, presumably including homes.
In talking to people interested in renting property in Marin County, I hear quite a bit about them wanting to wait a year or so until the real estate market "settles down". This quest for certainty may preclude the benefits of buying in a down market. There is opportunity out there right now. Experienced, professional Marin County REALTORS know the market and they know values. Take advantage of what they know, and reap the benefits!
more next week---
Until then, best wishes to all,
Fred
P.S. for spreadsheet access, please go to http://www.fredanlyan.com
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