The stock market has always been crazy and unpredictable, at least to those of us who see it as a mystery and pretty much leave that arena to the pros... The Real Estate Market has, to some degree, prior to 2007, been somewhat predictable.. at least in my view. But, it is a brave new world...
From a local perspective, predicting what will happen is based on many, many different factors: Jobs, global economy, people's reaction to the global economy... etc... The local number of foreclosures, while lower than most of the country, still has an impact on the value of homes. The global economy affects us when local companies reduce their workforce, or just leave... And the trickle down from such events certainly reduces the amount of cash people have, and thus affects whether they will buy a home right now...
But I am going to say, again, that I still think the main issue is the mortgage industry. Mortgages are tougher to get. Therefore, less buyers. Supply and demand always rules, so less Buyers, more houses, lower prices. In the last few weeks, though, I have seen an increase in activity. It is possible that the bottom has been hit and the turn is occurring. My personal opinion is that locally, we have seen the bottom (in general) but there likely will not be any real appreciation for some time. Do you still buy now?! That depends on your overall goals, but buying is better than renting, as long as you will hold the property for 3 years or more, or if you buy it really, really well. (Factor in the $8000 tax credit -- that may make it worthwhile too...) But the bottom line is everyone needs to look at their credit score and get to work. The goal is 750 or better. Cut up the credit cards if you do not have the discipline to not use them. If you are disciplined, pay them off each month. I use one card for business, one card for my rental properties, one card for personal, and one for gas. But, I pay them each off... each month. That helps me in my bookkeeping.... and my credit score is very close to 800.
If you are not sure of your credit score, the services out there on the Internet are helpful, but not completely accurate. The best bet is to talk to a local loan officer who is willing to work with you to get your score up. You need someone experienced and knowledgeable about what makes the score go up. My Loan Officer, several years ago, took my score from a 705 to a 790 simply by working through the negative issues and helping me clear them up. (I had a medical bill that my insurance co didn't pay -- long, but common story.)
So, I say again: "Cash is King". But for those of us who do not have a few hundred thousand laying around, "Credit Score is Queen!" So go get to work... spend wisely. Get help if you need it... It is a crazy, wonderful world out there!
Visit my website for more local information on San Antonio, Texas and surrounding areas. www.DannyTHomes.com
Monday, May 4, 2009
Subscribe to:
Posts (Atom)
