Sacramento Real Estate Boom or Bust?

March 24th, 2008 categories: Real Estate Market, Sacramento

Real Estate Boom or Bust Real Estate is all over the television and speculation of whether or not to buy now or later.

There are areas where foreclosure is prominent and other areas where there is real estate as usual.

Sacramento was hit hard with foresclosures in a few areas where new homes were built in record number.

New homes for sale saturated the real estate market and investors or should I say, those wanting to be investors, thinking they were investors bought in record amounts. This frenzy of home buying in new subdivisions only drove the builders to build more homes thinking the numbers warranted an over extended amount of homes.

This is how investors lose their shirt. They buy at the peak of the market and find they need to sell at the lowest point. The shows on T.V. and the programs that are sold to investors can not do justice to the principles of real estate. Real Estate is local, there is no one shoe fits all. Unfortunately, the programs sold to investors capitalizes on a one shoe fits all platform. This is a recipe for disaster, in my opinion.

You ask when should I buy a house? When should I buy an investment property? When should I sell my house? Is Real Estate going to bust and when? When will Real Estate Boom, again?

Great questions. In a recent article about the best time to buy Real Estate, I point out that the top, the peak of the market has already occurred. No need to worry that you will get stuck. What should be a concern is how long you plan to live in the house or condo for sale. The BOOM that we experienced is not something that we will soon see again. Prices will slowly go up and equity building will be a a much slower pace.

So, there is no BUST and there will be no BOOM in Real Estate as I see it. Everyone loves to theorize about this. No one has a crystal ball and no one has the one true answer. Its best to be cautious and steady rather than flighty and late.

Home loan mortgages are changing almost daily. If you were pre approved for a loan last month, you may need to be reevaluated. It is becoming harder to get a loan and the terms are becoming more precise in terms of down payment on a house.

This is why, in Sacramento I continually stress how important it is to get pre approved by a reputable Lender who will know if a mortgage loan program fits your needs as a home buyer. Home ownership is not for everyone. Some do better as renters. However, if you are interested in putting down some roots, staying in your house and making a home of it…then NOW is a fabulous time to buy. It’s buyer’s real estate market and that means it’s YOUR turn.

In the meantime, if you own a home and listen to all the negative information out there on television I suggest turn it off. Enjoy your home, keep it up to date and plan on living in your house for awhile and of course NEVER use your home as an ATM machine. Thats the best advice I could possibly ever give a homeowner, new or otherwise.

Do you want to weigh in on BOOM or BUST? Have any thoughts? Feel free to comment below.

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

Want to see homes for sale in Sacramento? Check out the Sacramento MLS (the IDX form of the MLS and is free for home buyers).

Other Home Buyer Related Articles:

If Mama Aint Happy, Nobodys Happy!

First Time Home Buyers in Sacramento-Congratulations!

When Should a First Time Home Buyer Buy a House?

First-Time Homebuyers Should Take Advantage of the Buyers Market

New Home Buyer Information You Need to Know

What Home Buyers Want in a House for 2007

Property Taxes-Something for Homeowners to Consider

Homeowner Tips and Home Buyer Tips

Important Buyer Information

This entry was posted on Monday, March 24th, 2008 at 4:58 pm and is filed under Real Estate Market, Sacramento. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Archives

Sacramento Real Estate Boom or Bust?

Leave a Reply

Real Estate Resources

Local Resources

Sacramento RE Stats

El Dorado RE Stats

Placer RE Stats

Yolo RE Stats

Blogroll