Many first time home buyers in Temecula and other parts of Southern California feel that now may not be the best time to buy their first time home. These first time buyers feel that waiting is a better strategy.
Temecula Real Estate
So what’s really going to happen to the Temecula real estate market and how will that impact Temecula First Time Home Buyers?
In a previous post we talked about the stars aligning AGAINST first time home buyers. To read more click here
Well here is more evidence that waiting may not be your best bet.
According to a report from Radar Logic, delinquencies have reached their highest peak in decades and the most bearish observers believe the inventory will flood the market once the government programs end, boosting supply and decreasing home prices. But Radar Logic analysts side with those like Rick Sharga of RealtyTrac in saying that banks will slowly burn through the shadow inventory, releasing them gradually onto the market. “Thanks to federal bailout money and a general improvement in their financial health, banks have been relieved of the urgent need to liquidate their assets.
As a result, lenders and government entities like Fannie Mae and the FDIC have been able to curtail sales to raise prices and avoid recording losses on properties,” according to the report. If the government and the banks can effectively solve the puzzle of mitigating foreclosures, Radar Logic says that home values could even go up in 2010. Of course, before calling an end to the recession, everyone will keep an eye on unemployment. Many believe the rates will peak in the next two or three quarters and decline. Once that happens, according to the report, housing demand with strengthen even more. “While we are not out of the woods yet, our view is that housing is showing signs of stability, markets are showing signs of rational behavior and everyone is starting to understand the fundamental problems that brought us here,” according to the report. “As such, we think the bears are overdoing it.”
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Tags: First Time Home Buyers, foreclosures, temecula first time home buyer, Temecula Real Estate Market