I participate in a Real Estate Professionals network on LinkedIn. Today there was a question asked, ‘has your housing market hit rock bottom?’ In reading the responses I started to become passionate. Why has everyone become a Junior economist? Have we all become so fearful that we cannot see what is right in front of our eyes?
I am getting worn out by the negative. Truth be told I have participated in quite a bit of that type of thinking myself. Well no more.
Dare to dream again![hr]
Response to the question: ‘has your housing market hit rock bottom?’
Michael Reed • In Sacramento County, CA, the average sold price of a single family home sits at $188,000, down from the peak in ’05 of $416,000 and below 2001 levels of $194,000. We all know that interest rates are hovering around historical lows. So what is the issue?
JOBS, JOBS, JOBS!! Current unemployment is 12%!
Sacramento was/is overly dependent on construction (starts at an all time low) and state government (capitol of California). There is a lot of conversation whether this is an issue that will correct itself or is it structural with no natural end in sight?
Here is what I know. I have lived in California all my life and have lived through many booms and busts. I grew up in San Jose, went to school @ The University of California Berkeley, and have lived all over the state.
The current situation is bad, but we have a re-set going on that has pushed affordability to an all time high! I have heard it so many times that it is comical. “Everyone is going to leave, business can’t make money, California is over”……BULL@#&%!!
If you are renting, buy a home it is cheaper! If your kids are in College buy them a home NOW. If you sit and wait for the bottom, you will regret it when you see it in the rear view mirror.
I love California….there, I said it and I stand by it!