Economy Crisis and real Estate

The real estate markets are all affected by changes in the economy, but so many local factors are present that it's difficult to make broad statements to answer your questions.

The sub-prime market is affecting lenders and borrowers who have secured loans using less than prime interest rates or variable rates.  These terms have led to foreclosures and defaults, putting those lenders in between a rock and a hard place.

However, for the real estate investor, it might still be a good time to invest in real estate.  Depending on your credit and the real estate market in your area, you can still find great deals and investment opportunities.  For instance, where I live, the lower-end markets are struggling, but the higher-end homes and properties are still selling well.

You must examine the markets in your area, talk to real estate professionals, and determine what kind of investment(s) you are interested in.  As they say, buying a home is one of the very best ways to save your money. 

All real estate markets are local. So, best to get the LOCAL info for the area you are considering.

Each area of the country is different!

The top of the San Diego California real estate market was the summer of 2005. Most home values are now off by double digits!

I think we are only half way through this decline. 2010 should be the bottom.

Keep in mind, the average San Diego median home price is over $550,000. So, a 15% decline is a $82,500 loss! If you purchased last year, even with 20% down payment, your San Diego home could now be worth MUCH LESS than the amount of your mortgage!

With my take on the background of the current San Diego real estate market expressed, my opinion on the immediate future is that the San Diego real estate market is likely to accelerate down as the popular adjustable rate mortgages from the last few years come up for their first adjustment.

Yes, San Diego housing values could easily be down 25 to 30% from their summer 2005 values by the end of 2007.

For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:

http://www.brokerforyou.com/brokerforyou

Additional real estate info sites:

http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm

http://www.brokerforyou.com

http://www.san-diego-for-sale-by-owner.com

http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us

http://www.brokerforyou.com/blogger/index.htm

http://www.sandiegorealestatelibrary.info

http://www.sandiego-agent.com

http://san-diego-coastal-real-estate.blogspot.com

http://sandiegofsbo.blogspot.com

http://downtown-san-diego-real-estate-views.blogspot.com

http://san-diego-coastal-real-estate.blogspot.com

http://sandiegofsbo.blogspot.com

http://downtown-san-diego-real-estate-views.blogspot.com

http://www.brokerforyou.com/san-diego-real-estate-sales.html

http://www.poway-real-estate.info

http://www.del-mar-real-estate.info

http://www.la-jolla-real-estate.info

http://www.los-angeles-real-estate-brokers.com

http://www.san-jose-real-estate-brokers.com

http://www.orange-county-real-estate-brokers.com

http://www.san-francisco-real-estate-brokers.com

http://www.sacramento-real-estate-broker.com

http://www.alpinerealestateagent.info

http://www.bonitarealestateagent.info

http://www.carlsbadrealestateagent.info

http://www.chulavistarealestateagent.info

http://www.clairemontrealestateagent.info

http://www.elcajonrealestateagent.info

http://www.encinitasrealestateagent.info

http://www.escondidorealestateagent.info

http://www.fallbrookrealestateagent.info

http://www.jamulrealestateagent.info

http://www.miramesarealestateagent.info

http://www.nationalcityrealestateagent.info

http://www.pacificbeachrealestateagent.info

http://www.pointlomarealestateagent.info

http://www.santeerealestateagent.info

http://www.sorrentovalleyrealestateagent.info

http://www.tierrasantarealestate.info

http://www.universitycityrealestateagent.info

That's a lot of link, just go to yahoo or msn for real estate update against  the current economy.

 I'm not sure about the answer to your question but it's always smart to consult a valid person. 

I came across a San Diego real estate broker's blog post that is to be the only one I've seen that does not spout the 'industry line: "It's always a good time to buy real estate." This broker calls it like it is. No it's not PC, but it is amazingly informative and insightful.

Bob Schwartz, the San Diego real estate broker who publishes the blog, wrote a great article back in 2005 that predicted today's huge home deprecation. You can read this article at: San Diego real estate the url is:

http://www.brokerforyou.com/brokerforyou/?p=11

The blog is :

the url is:
http://www.brokerforyou.com/brokerforyou

I don't think this is the right time for you to invest in the housing market. It's too risky. It would entail a lot of hard work and luck to hit gold in today's real estate situation. Just wait until the crisis lightens, after all, things are slowly shaping up for the housing market (fannie and freddie's government takeover, dropping of mortgage rates, increase in FHA loans, etc.)

This site can help you with your questions: http://new.housingassistancenetwork.com

For me as long as you see that the place is recovering from crisis, I will not hesitate to buy that property.  It is still good to purchase property.

For me as long as you see that the place is recovering from crisis, I will not hesitate to buy that property.  It is still good to purchase property.