Archive for March, 2013
March 4th, 2013 categories: Local San Diego News You Can Use, Market and Forecast Updates For San Diego, San Diego Real Estate, San Diego Real Estate News, San Diego Relocation, Selling San Diego Real Estate
I think much has been said or implied that the real estate market recovery is underway. If that is so and it does seem that way at the moment, perhaps there are some projections or a forecast as to what can be expected in 2013. With many many market reports that show the trend lines to decreasing inventory and slight increases in property prices in certain market areas, it would be wrong in my judgment to draw more inference from them than what has already been shown.
With no crystal ball to predict the future, there are some economic indicators that point to more difficulties ahead with the fiscal cliff clearly in front of us. In my estimation, even if there is a temporary solution, the federal deficit looms even larger and there seems to be no consensus about the biggest items in the budget, the entitlements.
The mortgage interest deduction which has always been sacred also appears to be on the table in the continuing negotiations to avoid the fiscal cliff. There are varying opinions on what the effects could be if the mortgage interest deduction is tampered with. Because once that is opened up to some of the considered or proposed changes, thinking that will be it as far a changes goes, usually proves to be a wrong judgment. It will likely be tampered with again and again until it basically would disappear or with such limits imposed that it could still have a profound effects on real estate markets.
We have seen a clear draw down of inventory. What parts of the inventory? The homes that have been remodeled, upgraded and show very well and also the entry level homes that have been picked up for cash by the investors. So what about the rest of the inventory? Some of it at least seems to be being passed up by Buyers or offered on with much lower prices and either rejected by the Sellers in hopes of a better offer, or these homes just remain on the market and are chasing the market instead of leading it.
The Mortgage Relief Act is also expiring at the end of the year and if there is no consensus, some short sale sellers could find themselves in a world of hurt. Not to worry everyone says, this will be extended. OK, so then so lets not worry about it.
In past years I have always been optimistic and I have decided to remain so. After all, interest rates are ridiculously low, prices seem to be increasing, inventory is selling, so what’s to worry about. Perhaps that will be my projection. “Don’t worry about it”. It will all work out for the best. Who’s Best? I suppose the best answer will be, “It depends on Who’s asking”. For those of us living in San Diego and for those that will make their way here, what won’t change is the awesome beauty of our coastline and the great weather in the city where “Happy Happens”. As for the rest of the concerns, “Don’t worry about it”.
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