"We're timing the market. We think there's more room for correction. We're waiting for it to bottom out." Aren't these the comments of stockbrokers, investors and the Chairman of the Federal Reserve? Nope. Mrs. Smith, a senior citizen who recently relocated with her husband from Minneapolis to Encinitas to be near family, told me this.
They opted to rent first before buying Encinitas homes for sale. As an Encinitas Realtor I instinctively asked "Why?" Her answer, "We're timing the market. We think there's more room for correction. We're waiting for it to bottom out." It was an interesting response from a senior citizen couple that planned on retiring here.
This was not the first time I had heard these comments recently. It had been often. All it took was for someone to pick up a local newspaper to learn our housing market had been in a general decline for four years now.
At certain price points of Encinitas real estate, like the lower priced Encinitas condos for sale, there are obvious signs of correction, but in many segments, especially the higher ones, the turnaround point is unclear. This makes her a savvy buyer. Or, does it?
First, the Smiths will need to get a mortgage. It is unlikely rates will remain near the historic lows they are at today. This means dollars that could go to retirement savings would likely go towards their mortgage bills if they waited too long.
I then asked, "How will you know when the market bottoms out at your price point?" "We'll know the market has bottomed out when the paper says so," Mr. Smith said. "I agree," I said. "Though, aren't you concerned they won't declare it until after many months of positive data, and by that point don't you think there will be a lot more buyers to compete with?"
Finally, how will the Smiths know when the market has reached bottom at their price point? The reality is they won't know it's reached the bottom until it's behind them. And, the buying activity will likely become more competitive like it already has been at the lower price points.
I respect and appreciate Mrs. Smith's conservative approach to the market. I'm sure all of the other buyers out there looking for that same single story appreciate her approach to. Mrs. Smith, if you're going to retire in Encinitas, isn't it time to start looking for the perfect home now? - 30331
They opted to rent first before buying Encinitas homes for sale. As an Encinitas Realtor I instinctively asked "Why?" Her answer, "We're timing the market. We think there's more room for correction. We're waiting for it to bottom out." It was an interesting response from a senior citizen couple that planned on retiring here.
This was not the first time I had heard these comments recently. It had been often. All it took was for someone to pick up a local newspaper to learn our housing market had been in a general decline for four years now.
At certain price points of Encinitas real estate, like the lower priced Encinitas condos for sale, there are obvious signs of correction, but in many segments, especially the higher ones, the turnaround point is unclear. This makes her a savvy buyer. Or, does it?
First, the Smiths will need to get a mortgage. It is unlikely rates will remain near the historic lows they are at today. This means dollars that could go to retirement savings would likely go towards their mortgage bills if they waited too long.
I then asked, "How will you know when the market bottoms out at your price point?" "We'll know the market has bottomed out when the paper says so," Mr. Smith said. "I agree," I said. "Though, aren't you concerned they won't declare it until after many months of positive data, and by that point don't you think there will be a lot more buyers to compete with?"
Finally, how will the Smiths know when the market has reached bottom at their price point? The reality is they won't know it's reached the bottom until it's behind them. And, the buying activity will likely become more competitive like it already has been at the lower price points.
I respect and appreciate Mrs. Smith's conservative approach to the market. I'm sure all of the other buyers out there looking for that same single story appreciate her approach to. Mrs. Smith, if you're going to retire in Encinitas, isn't it time to start looking for the perfect home now? - 30331
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