Is the Market...Tumbling? Where will we be?

Rates are good...Real Estate is a little slow...homes under $300k are still moving at a good pace, it's us in the middle that are stuck. So, what next?

Well, it looks like a 1990 repeat! Sometimes we don't always learn from our mistakes...we are doomed to repeat History!

In the last 2 months we have seen Banks(Lenders) close their door w/o any notice...their employees wake-up same ol routine and BAM the doors closed on them! So, why the dramatics? Well, I know people in the business like to blame the "Payment Option Arm" Loans and sure that's fine you can do that, but wouldn't it make sense to blame these same banks that "were" allowing bad loans to go through turning a blind eye to what is happening.

The last 2 years have seen Interest Hikes...The Feds talk about controlling the Market, but what happened to allowing the Market to stabilize on it's own. They don't need to guide it....look where they've guided it to.

I love the people I talk to on a regular basis who think they are going to wait until prices drop dramtically, but Sac/Placer county has only dropped about 2%. yes, foreclosures are up and "CountryWide" foreclosures are very high(and they are looking for someone to buy them before they take a big tumble) but you will never in California be able to buy homes here for pennies on the dollar. Yes, maybe banks will look to deal or give better deals, but they will never give away property. The banks don't lose anything to hold the property.

Anyways...with bank closing and merging was does this mean for the average person or 1st time home buyer? Well, it means that within the year we will no longer have 100% financing! If anyone wants to buy a home you are looking at putting up to 20% down plus show reserves a minimum of 3 months of mortgage payments. So, someome w/ok credit will not be able to buy a home...you will need steller credit! How do I know? Because Banks(lenders) are in my office everyday and e-mailing me everyday almost every hour about their changes. Rates are good for only hours when it used to be weeks.

Where will we go, what will we do, what will happen to us? Ride the wave and buy now! Homes that our parents bought 20-30yr ago for $50k-$100k never again...our homes $300k-$400k and our children will look to inheirit their property and probably not be able to buy. It could be theory or it could be speculation...but from what I know today...I would buy and hang-on to my surf board and ride the wave!