In looking behind and ahead, I see that we are slowly working through the worst of the downturn... but there is still so much to go!
I have been approached by some who wonder if the housing prices will drop again by a large percent, but in looking to the counties South of us, we see that is not likely to be the case. Sonoma County's lowest price ranges have been stabilizing and increasing a bit (only because they reached a "false" bottom due to the foreclosures), which is a good indicator for us in Mendocino County. Also, our own lowest price ranges have been stablizing in Ukiah and Redwood Valley, and Willits shall not be far behind...
But, there are others who hope that when the foreclosures trickle towards a stop, we shall see prices go up again-- to that I say, IF prices go up at all, it shall be by a VERY tiny amount (unless the value is rebounding from being affected by a "false" bottom in the lowest price ranges), but that we shall have years before any significant increase in prices occurs.
So, does one buy now or wait? Depends on what someone is looking for, really. If the property they want is available and suits their needs... they can afford the payments and are not paying too "over the current market" for it, then I would say that purchasing is a good idea. If someone is only waiting for the "real" bottom to buy, then they run a high risk of waiting until the prices do start back up... but by that point in time, perhaps they will not find what they want before they are priced out? All depends on the supply of homes and what is available at what time. However, if there is nothing out there that a buyer wishes to jump at, then do not feel forced! That is truly not the way to buy a home... there will be other properties on the market in future, and perhaps one of those will be the "one" for you.
Yes, the bank-owned properties offer good buys on the market, but I have also seen multiple offers and frenzies to buy that have driven the price above what I would have considered a "great buy"... so be careful of not falling into the emotional trap of a bidding war.
Lastly, never lose sight of what you qualify for, but more importantly what you are comfortable with! If you qualify for $300,000 but feel more comfortable with payments at a price of $250,000... then try to stay as close to the $250,000 as possible. Ask your agent for sales comparisons to the property you have interest in-- but understand that the condition of these comparisons may be drastically different (they can look a lot different on paper and on the internet as compared to real life), and there may be a reason for a price difference...
The goal should be for a positive transaction that makes all happy or at least satisfied... and go ahead and ask questions along the way. You are not unintelligent for needing to ask questions! Maybe we do not always tell you, but we have to ask a lot of questions ourselves in this constantly changing market. :)
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