Here we are again. The Christmas season is over, the weather is in the 60′s and Calendar-quality waves are pounding into the coast much to the delight of the local surfer population.
Here we are in the new year and there is a lot of optimism among agents which is great. Whether it is warranted or not is another story. As I’ve been talking about all through 2009, Santa Cruz real estate has been making big gains. The funny thing is when I go to other real estate blogs, they are still talking about how their areas are just starting to, or about to recover.
Also in the rumor mill is a lot of talk about another dip in real estate prices is expected for several reasons. First is that there is a backlog of foreclosed properties that need to be sold. These were held back through the second half of last year. Second is that about 50% of all loan modifications are failing within 6 months so we expect to see more short sales and foreclosures happening. Thirdly, is the rumor that rates have nowhere to go but up. I’ve been hearing stuff like this since June of last year and it hasn’t come to fruition. However if there is any truth to it, an impending dip in prices means selling now is a good idea. If rates are going to go up, it is also a good idea to buy now. Now if you don’t need a loan and you plan to buy… hold back if you believe the rumors.
That’s my .02. I expect that the downward trend in the number of homes for sale will turn around here real soon.
