Down But Not Out: Don’t Let the Headlines Put You on the Sidelines

The numbers tell only a small part of the story. Moderate weakness through Q3 ’08, then significant decline in Q4’ 08 as credit and underlying confidence evaporated (see additional statistics at my website). It takes some getting used to, the thought that indeed our properties are part of markets that can decline as well as appreciate. If you don’t have strong motivations for moving, stay put, enjoy your home and your family. If you must sell (job transfer, health, lifestyle) your well prepared home can still sell well given the reduced inventory we are experiencing. For many others, this market adjustment can spell opportunity. Opportunity to buy a home (now more affordable) for the first time, opportunity to trade up more easily than 2 years ago (a 10% across the board decline means a lot less dollars on a $1MM home than on a $500K home), opportunity to diversify your investments (including your IRA investments) to include real estate, opportunity to help your children buy and stay in Marin. There are great opportunities out there: a bank owned property for $650K in a neighborhood that was at $900K; a motivated seller who wants to downsize for health reasons. Use this market to your advantage.