Good Times Bad Times

I know we've had our share over the last few years, but it seems to be an interesting time right now - especially with the media. Lately, I've noticed a bit of confusion as to which way the media wants to spin the current real estate market. There have actually been some positive reports and mention of a "bottoming" market mixed in the with usual doom-and-gloom that they regularly treat us to.

Even California's highest real estate organization, the California Association of Realtors (CAR) can't figure out which way to go as indicated by a recent email I received from them. One headline touted a fourth-quarter affordability rate of 33% in California, which is 9% higher than a year ago and the highest rate I've seen in my 5 years as a Realtor.

CAR then spins around and says that home ownership is out of reach for many Californians. While this is true, the affordability has increased significantly while rents seem to have outpaced income growth - making an even stronger case for buying a home.

I believe we're certainly in a transition period right now with a market that does seem to be bottoming out and headed back toward some slow growth for while. As many experts said a while back, this downturn was a necessary correction for a market that was spinning out of control and making it much more difficult for the average Californian to join the ranks of homeowners.

The two articles I mentioned will be posted below (or above) this one...