We thought you would appreciate reading some excerpts from an internet report we just received. If we just had a crystal ball, how great it would be. As it has been said
“It takes courage to buy at the bottom of the market!”
Our thanks to Craig Goebbel for this interesting point of view. See below:
The Craig Report (excerpts)
….There are two things of which we can be more than fairly certain:
· The First Time Homebuyer Tax Credit is $8,000, if you hold for three years there is no payback and you can now use it with state agency down payment assistance. This is good news.
· In (Washington State) King, Pierce and Snohomish Counties the new Super Conforming loan limit is increased from $506,000 to $567,500.
….How stimulating will all of this money be for our economy and real estate in particular? Well, we need to wait a (little while) to find out.
….We all know how the price distortion of homes was created. All of us, and I do mean all of us took part in the unprecedented run-up in home values fueled by the idiot money of pay option arms, stated income and zero down.
Now, all of us are feeling the pain of the ugly reality of correction. No market is immune and no sector of the economy has been spared. The questions are how much more and how much longer? …..
….. Median income has always driven the median price of housing and residential rental rates. The affordability index combines median income with prevailing interest rates and median home prices. I contend the bottom is just around the corner because real median income (not stated median income!) has not dropped nearly as drastically as home prices. Second, the affordability index is quite favorable for homebuyers because of the price adjustments already in place and very low interest rates. I believe we are at or very near the bottom, particularly in the Pacific Northwest and most other parts of the country as well….