Usually when you have a credit crisis, a lot of people have problems.
There are those who believe all the political rhetoric and feel they are victims of their circumstances and it is someone else’s fault.
Others feel they are helpless and will just have to let the government bail them out.
Then there are the few who view the current market as an incredible opportunity.
Bernard Baruch once said “Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.”
A lot of would be home buyers seem to be playing spectator as they kick tires on the open house circuit cautiously waiting for some guru to give them the green purchase light.
Bold actions are taken by motivated timid people.
Motivation is self induced.
There is no guru who can pull the trigger at the perfect time to let you know when a great home purchase is just right.
Getting credit for a home purchase may be the challenge of the decade. Sure your credit score is great and you have good assets. In today’s market it doesn’t mean you are guaranteed a home loan.
At the moment, there are no second mortgages in the regular market place.
There are few if any stated income loans.
The concept of higher conforming limit loans has not developed in reality. Lenders are offering good rates on the old conforming limits and charging higher rates for the increased conforming limit loan.
These are now known as the CON-forming Loan.
Jumbo loan rates are higher than the Washington Monument.
So with all this grim news, what is the forecast?
Short term…more of the same!
Long term…more of the same!
The world has always been in turmoil and chaos.
Smart people continue to make smart moves during good times and chaotic times.
This may not be the bottom of the housing market but what if it is?
Five, ten or fifteen years from now the home purchase you make this year may make you look like the guru you were searching for.
The old adage “when the student is ready the teacher will appear” still applies in making good decisions.
It is also a great time to be remodeling your existing home as contractors are scrambling for business.
As the pendulum swings to the left and to the right it always returns to center. So it is with the markets.
The housing market will turn. When? Who knows for sure?
But take a minute to do a reality check.
The $300,000 house that was bought in Santa Clara 15 years ago is now worth over $700,000.
That price is after the last two year slump.
Baruch also said, “When good news hits the front page of the New York Times, sell.”
Miles H. Barber can be reached at Scweekly2004@yahoo.com
