There's a time to buy and a time to sell

An unusual day in the desert...48 degrees and raining. We need a couple of these days every now and again to remind us of how lucky we are. The real estate market here continues to surprise. This is definitely a buyer's market (more inventory, fewer sales), but many of the sellers aren't acknowledging it. Sellers are ultimately giving the buyers more concessions: help with closing costs; prepayment of Home Owner Association dues, golf memberships, to name a few. Most sellers are pricing their home to "sit" rather than sell and buyers are initially turned off because they know that lowered prices are out there.

In the low end of the market short sales and bank owned properties are selling well...but the process can sometimes be a long one. All the participants (buyers, sellers, agents, banks and loan brokers) have to be patient. In this kind of market it is unwise to expect a 30 day close unless you're buying for cash.

This the kind of market where a good agent is worth her weight in gold. Knowledge of the market, the patience of a therapist and the skills of an international negotiator are the tools needed to effectively close many real estate deals in this environment

The big question is whether it's a good time to buy or sell...and the answer is (you guessed it) yes and no. The answer is yes if you have a good reason. If you're retiring and know you want to live here; if you know you want to be here for the season and can use the mortgage deductions; if you don't need the deductions, but you've just seen the home of your dreams ( and I could show you a few!); if you own a property here and have an option arm mortgage due to reset in a couple of years which might create a future problem. If your motivation to buy now is to capture those prices at the bottom, we probably aren't there yet...at least we won't know that until we're looking backwards through the rear view mirror. After the most recent stock market plunges and all the talk about credit default swaps (which I cannot properly explain even though I was a stock broker for ten years, because those "swaps"are so distanced from actual investments...they might as well be investments based 0n the rate of the flight of butterflies on a windy day) real estate has intrinsic and lasting value and remain worthy of attention as an investment vehicle.

Come join us in the desert and pick the oranges for your morning juice off your own trees.

Nikki

Autumn in the desert brings cooler weather and the anticipation of of our winter season. Those of us who live here year round are grateful to see the restaurants reopen and monthly art venues restart for the season.