I wish I had a dollar for every time I heard someone say:
“Now is the time to BUY!”
when it comes to a discussion on the real estate market. Suddenly, everyone is a contrarian. At least, they think they are contrarians!
Fortune magazine just published their list of the 10 worst real estate markets for 2009. Not surprisingly, 8 of the 10 are in California. The important point here is that Fortune, not known for going out on a limb, is predicting that some markets in will fall as much as 25% just in 2009!
This doesn’t bode well for U.S. real estate.
What also doesn’t bode well is the fact that Option ARM loans are set to start resetting in Q1 of 09- meaning foreclosures are about to go through the roof.
So the armchair cocktail party real estate market experts are getting it wrong again. There is no “blood in the streets” yet, foreclosers are just getting started, and we certainly haven’t hit bottom anywhere in the country at this point!
My advice to anyone looking to buy property (especially in CA) is to wait a year. 2010 won’t be good either, but at least by that point the shakeout from the credit crisis and option ARM reset disaster will be nearing an end.
Hold on to your hats (and your gold)!