Antonio & Alexia's Blog

head_left_image

The 2009 Real Estate Coin Edition... Flip it To See The Other Side. The Side That is Alive and Well

As a professional Realtor with over 24 years of experience, I have never seen so many bad news about my business put together and shown all over the media day after day after day. You will think that there is a conspirancy to drive us out of our business. I certainly have noticed the drop of phone calls, the lack of transit during open houses, the dissapereance of  good, reputable real estate companies and associated and supportive service companies like title insurance, pest control, roofing, mortgage and others that depend on a healthy real estate market. But is it really that bad for everybody?  Just as when the market was in the upswing, we knew that it will have to stop one way or another, we clearly see that it did stop and that is going nowhere right now... Or is it? 

Despite the obvious slowdown, there is a very active and profitable real estate market going on right now in certain areas. We presently are working with several first time buyers. These people are using FHA loans with downpayments as low as 3.5% and low FICO scores, they are asking sellers to pay closing costs and help with their downpayments, they are taking full advantage of first time buyers incentives, low interest rates and the newly approved $8,000 Tax credit.

Yet, some of them still cannot find a house to buy! Because there are multiple offers on properties that just come on the market, some of those offers in my area below the $300,000 mark are being bid with offers as high as $40-50,000 over asking price. Offers with all cash, no contingencies, "as is" with a fast close of escrow. Unless these people read the papers daily they will not believe there is a real estate meltdown. They simply don't believe the other side of the coin that tells them is a bad market.

Investors are buying at lender's auctions blocks of real estate at bargain prices and then turning around and selling them quickly, those who don't get greedy turn those profits fast. These people are having a ball! real estate is alive and well and triving... in February 2009! These real estate buyers are primed to reap the benefits when this market turn around because it will. In the last few weeks we have writen offers on REO's and Foreclosed homes, and on short sales listings. Banks have learned how to streamline their flow of short sales and REO's to the delight of those Realtors who embrace the new ways and methods of buying and selling real estate.

At current prices, buying real estate offer investors and homebuyers one of the single best long-term investments today. Every coin has two faces, you must look at both sides, if you are looking at the side of a depressed market, don't panic, just flip it over... and over again until you get to see the face that you like. Then focus on the bright side and take full advantage of the wonderful opportunities available right now.

 Antonio & Alexia Cardenas, "The Realtors In Motion" San Leandro, CA. Open Servind the beautiful cities of San Leandro, Castro Valley, San Lorenzo, Oakland and Hayward, Dublin & Pleasanton. Call us, we will come and TANGO with you. (510) 326-4263

The Realtors In Motion       Antonio & Alexia Cardenas   

                  "The Realtors In Motion" 

         CRS, GRI, E-Pro Certified. SFR (Short Sales, Forclosure Resource) Serving the east shores of the San Francisco Bay, Alameda county: specially the following cities: Castro Valley, San Leandro, San Lorenzo, Hayward, Oakland, Pleasanton & Dublin.

                  Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

                     Call us, We'll come and TANGO with you!

Comment balloon 4 commentsAntonio & Alexia Cardenas • February 22 2009 11:09PM

Comments

I completely agree.  I work with foreclosures in SE Florida and often see properties selling the first day at or above their asking price.  Things would be even better if there was more money out there to lend.  I only see FHA financing or Cash deals, the conventional market (primarily middle class) has been cut out, leaving prices to continue to decline through the year.

Posted by Todd Kevitch over 10 years ago
 

I completely agree.  I work with foreclosures in SE Florida and often see properties selling the first day at or above their asking price.  Things would be even better if there was more money out there to lend.  I only see FHA financing or Cash deals, the conventional market (primarily middle class) has been cut out, leaving prices to continue to decline through the year.

Todd Kevitch
BPO Realty LLC
Boynton Beach Foreclosures

Posted by Todd Kevitch, Mortgage Loan Officer - I get deals done! (InterContinental Capital Group) over 10 years ago

What a great metaphor! There are always two sides to every coin and every situation. Thanks for pointing out the upside in the current market.

Posted by Ilyce Glink, Best-selling author, award-winning TV/radio host. (Think Glink Media) over 10 years ago

Todd, yes we see a lot of cash offers and FHA financing, once we get into conventional financing things change quickly, the pipe runs dry.

Ilyce, thank you for your visit. I just wanted to make sure I make my contribution of "good news" because there are good news out there, the media is not printing that yet.

Antonio

Posted by Antonio & Alexia Cardenas, "The Realtors In Motion" (Alameda County - San Leandro, CA.) over 10 years ago

Participate