The Writing is On the Wall

This is a message for any prospective seller out there waiting a little longer before they decide to sell. If the impetus behind waiting is predicated on a belief that doing so will result in more money, please heed my words, or at the very least, those of Isaac Newton: what goes up, must come down. The writing is on the wall folks, and the real market is currentyl poised for a crash! Why? Well generally speaking the market is cyclical, and history does and invariably will repeat itself, again and again and again. Our last “crash” was 2007, a decade ago. Now, while I could drone on about all the reasons we’re currently insulated within the eye of the hurricane, I’d rather simply list a few key bullet points that I’m hoping will help drive the message home for you. 

  1. JOBS: how the gov calculates unemployment statistics is beyond me, but what I do know is that approximately 102.7 million Americans are unemployed, that’s about 1 in 3.
  2. Interest rates: with each full percentage point increase, buyer affordability is impugned by about 20k
  3. Other economic indicators: did you know that 40% of ALL car loans currently are sub-prime? What does this tell you?
  4. Governmental interference: 97% of ALL “successful” loan modifications have since redefaulted. Given these appalling statistics, it would seem to me that “postponement” was the priority at hand vs correcting the problem, or allowing for the market to correct itself. 
  5. Millenials: There were high hopes, admittedly too high in hindsight, for this generation of Americans to “save our country,” so to speak by purchasing homes in record numbers. The problem? This never happened and most of them still live at home with mom and dad:(
  6. Loosening of lending qualifications: evidently the more stringent lending guidelines in the wake of big crash of ’08 has engendered a shortfall in the amount of mortgages available to fill the mbs (mortgage backed securities) packages sold on wallstreet. Needless to say, more mortgages were/are needed to fill those packages. So guess what’s back folks? Yep, stated loans, nina loans (no income no assets), and in some cases, even ninja (no income, no job, and no assets) loans are resurfacing….can you see it yet?? Once again, our homes have become atms….and we have come fill circle. 
  7. Follow the money: most of the “buy and hold” hedge funds or reits (real estate investment trusts) are quietly, and without much fanfare, liquidating their assets and exiting the market, particularly in California. 

If you’ve been thinking about selling, do it now, ask me how! I can get you top dollar now, before what I’ve mentioned in this post becomes common knowledge. As you can imagine, by then, it will be too late! Call me at 909.559.5275 or my office at 909.999.6888. Ask for Jonathan Zuckerman. When you want a sold sign, call Z Real Estate ! 

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Post by Jonathan Zuckerman

Jonathan has written 239 articles.

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