Stimulus plan..should I wait or buy… – Zillow Advice
Clay | February 10, 2009I am publishing a full report in my newsletter soon on this but for now here’s my answer to the “should I wait” question on real estate:
In most markets, “prices” do have a long way to fall, that is a reality. Actually it is a fact in the bay area, right now, as we write. Like a rock.
Note focusing on average list prices or yesterday’s actual prices does not tell us what is happening now or in the next few months.
Right now in the Silicon Valley about 60% of the listings are distressed – REOs and short sales. BUT, as far as listings actually in escrow, they make up about 80%. This of course is unusual in the grand history of things, but normal is not normal now.
In the next few months we will see reports that actual prices compared to list prices will be dramatically down…faster than even the worst of the so-called “doom and gloomers” here predicted. But in actuality it will be old news.
The question was should I wait or buy now? The answer is not in the newspaper, or on TV, or on an internet bulletin board. Its at the bargaining table.
