My Thoughts on Media Talk

I thought I would share a brief part of an e-mail that went out to our 20 agents here in the office, and a lot of this “behind the scenes” content should really be part of what everyone in locally in Costa Mesa is talking about. Here’s a slice of what I sent, I will save you my motivational rant at the end. 🙂

Hey Everyone,

Hope you are having a good friday leading into a good weekend.  I wanted to give you my thoughts on media talk that is out there right now.

As you know I like to stay very positive on things, but I thought I would share an article that is out there and will definitely have an impact on consumer thinking and behavior in real estate:

This is an article on the register’s website with a local economist/money manager who is forecasting continued difficulty for the OC real estate market.

Read it and see what you think.

Interest rates at 4% will not last forever. It is still cheaper on a monthly basis for someone to buy a home now at reduced prices, even if the same home is $50,000 cheaper next year at 6% rates.  Do the math, it is an interesting study.

Sellers- perhaps the time to take that offer that is just a little lower than what the sellers wanted is NOW. Fence sitters definitely need to see this article, unfortunately it will probably effect buyer behavior.  You can definitely see the lower pull already over the year on the higher priced market in Costa Mesa real estate.

Too much of what is in the media effects consumer behavior, and articles like this really do the trick.  Even though this guy could very well be wrong about how this effects us locally , it his opinion and it will sway thinking.  It’s funny because just yesterday the Fed came out with their quarterly report, and said that results were better and interest rates will stay low well into 2013. So I guess it really is just conjecture for us locally in Costa Mesa.

I think the point that drives home how silly some of this conjecture is, is the fact that many, many smart people are taking advantage of this market.

Here are what the smart folks are doing:

• Refinancing their 5.5% mortgage rates into rates that are 4% and LOWER
• Moving Up – Smart people who need a little more space are selling, taking their equity into a larger costa mesa real estate home at a much lower interest rate
• Investing – Buying a home now is much cheaper than renting in Costa Mesa. With the stock market yo-yoing around, an investment in local real estate can be much smarter and predictable for the future
• Investing in multi-family properties – I spoke with a commercial broker and he says it is too good a time not to buy right now
• Buying great homes in great condition with these low interest rates

Need help? Or perhaps you just want to gripe :)? Broker Colin Delaney is always happy to listen or give you some free advice at (714) 743-9882.