Thursday, September 18, 2008
What bad national financial news may mean to our local real estate market
By now, everybody knows about the latest national financial crisis and many people are worried. What does it mean for our local real estate community? Here's my entirely subjective opinion. I think many buyers, who just took tentative steps to get into the market, will retreat again and wait for awhile. I think sellers will not put their properties up for sale if they don't have to. That leaves a market that will be mostly foreclosures (L.A.Times says 50%) plus new condo and new townhouse units (tons of new buildings are just being or have just been completed). At this point, I would not expect interest rates to bounce up -- the banks and lending institutions need to make money by lending it after all. But this Fall should be, uh, interesting.