"When is the bottom going to hit because I want to time it and buy at JUST the right moment?"

 

If I had a dollar for every time I heard this question, I would be rich.  If I had the answer to this question, I would be rich.  Unfortunately, my crystal ball is a bit cracked these days... 

 

First, I think we are close enough to the bottom that trying to 'catch the chicken' or time it anymore may require too much energy and not provide enough return.  My gut feel is rates will stay low for the next couple months.  I think the government will participate in making sure this happens and I think banks will also contribute to this as well.  Over the next 24 months I predict the banks will be slowly releasing a backlog of shadow inventory (foreclosures they have either been avoiding putting on the market or have been avoiding actually foreclosing on to keep the books 'cleaner').  The combination of REO's and low rates should keep the market flat with maybe a couple % change in either direction.  NOTE - MY CRYSTAL BALL IS CRACKED.  This is just my gut feel from the pulse of the market I am currently feeling.  Please know that for the last 18 months I have been telling people to pause, especially investors.  This is the first time I am actively voicing that I think it is a good time to buy in a long time.

 

One other trend to note is bidding wars.  The last couple of offers I have submitted and the last couple of listings I have put on, have been involved in bidding wars.  This is a great sign of life and may be another blog topic in the near future - stay tuned...

 

With this being said.  I think now is a GREAT time to buy IF you want a home to live in and not flip.  Prices are low.  Rates are low.  Inventory is good.  You can't get too many other factors on your side...  Enjoy your hunt.

 

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