I was recently having a buyer’s consultation with Mr. & Mrs. Smith, a senior citizen couple who just moved here from Minnesota to be closer to family. Early in the consultation, Mrs. Smith remarked, “We’re timing the market. We think there’s more room for correction. We’re waiting for it to bottom out.” I respected that she was confident in her thoughts.
They opted to rent first before buying Encinitas homes for sale. As an Encinitas Realtor I instinctively asked “Why?” Her answer, “We’re timing the market. We think there’s more room for correction. We’re waiting for it to bottom out.” It was an interesting response from a senior citizen couple that planned on retiring here.
These comments by this nice lady, who was elated at having finally escaped her cold winters, are common among buyers. Where did Mrs. Smith gain this wisdom of the housing market? She simply read the paper. There had been four years of data that proved the market has been in a general decline since late 2005.
At certain price points of Encinitas real estate, like the lower priced Encinitas condos for sale, there are obvious signs of correction, but in many segments, especially the higher ones, the turnaround point is unclear. This makes her a savvy buyer. Or, does it?
I first asked Mrs. Smith, “Do you need a mortgage, and if so, are rates important to you?” “Rates are at historic lows,” Mrs. Smith answered. “But for how long?” I asked. “And if rates do go up, would you rather be giving that extra money to the bank or saving it for your retirement?”
Second, the Smiths want a single story home, a category already with depleted inventory. Will the right one conveniently be available when they decide it’s time to look? We don’t know. Not likely though.
Finally, how will the Smiths know when the market has reached bottom at their price point? The reality is they won’t know it’s reached the bottom until it’s behind them. And, the buying activity will likely become more competitive like it already has been at the lower price points.
I told Mrs. Smith what I tell all of my buyers, “Southern California is on sale right now. I don’t know how long the sale will last. Think of how upset you will be if you miss it.
If you are buying or selling Encinitas real estate than you need to log on to Encinitas homes for sale, your all inclusive guide for what you need to know when buying a home in North County.
No comments yet.