Billionaire Mark Cuban summed it up here:
1. The Bailout Hits. Euphoria on Wall Street. Stock Market goes up.
2. Banking Balance Sheets improve, Banks of all types say the problem is solved. They loan money to their biggest corporate and very rich clients. They have to, they dont want to lose their business. Of course, those corporate and rich clients borrow as much as they possibly can because they dont know when and if credit will dry up.
3. Wall Street Analysts say they are optimistic that retail sales will be stable with last year, and possibly even up as consumer confidence has shown increases
4. We start to hear complaints from consumers and small businesses that loans are not available to them , or when they are, the terms are unreasonable.
5. Dec sales for retailers are below last year and below analyst expectations. Retailers say its due to lack of credit availability to consumers.
6. Mortgage default rates start to increase
7. Stocks fall hard
8. The Treasury Department says it underestimated the amount of money that needed to be pumped into the system in order to create liquidity for MainStreet. They announce they will use the ANTICIPATED profits from the 1st bailout to fund the next 500B of bailout
9. They time the 2nd 500B “investment for the taxpayers” to be on the 101st day of the new administration.
10. The Recession grinds on and on and on
So…this means again MORE foreclosures, more shortsales. Button down the hatches and get ready for a ride. Homes can still sell, but they need to be priced right, show well and be marketed aggressively.
This is a great time for buyers and investors to buy homes in San Diego! Interest rates are at 5 year lows and prices have been pushed down significantly over the last 3 years.
For sellers, it is critical that you get the correct agent. Today’s agent needs to be a master of negotiation, online marketing, as well as Short Sales!
Now more than ever, it is critical that buyers or sellers get a PROFESSIONAL! There is as much as a 90% chance that the home you want to buy is either a Short Sale or a Bank Owned Foreclosure (REO)! IF your agent doesn’t truly understand the nuances of these types of transactions, it can cost you dearly!
All the best
Marc
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For everything you need to survive and prosper in the current San Diego Real Estate Market, go to: http://www.MarcVonMusser.com
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