Echoes of this oft-repeated question from our youth, are rumbling through the home buying community. Have we “hit bottom” in the Palos Verdes real estate market? Even the experts do not know. The Los Angeles Times August 17th edition tackled this subject regarding real estate in all of Southern California.
There were several stories of “experts” who predicted the housing bubble, sold their own houses and have been renting. Most sold a little too early and not at the peak. And now, when to buy back into the market? Dean Baker, an economist has bought back into the market because “The bottom isn’t here yet but it’s close enough for him. Baker said he’s psychologically prepared for his house to fall 10% more in value. That risk, he said, was offset a bit by the 4.25% mortgage rate he obtained and an $8,000 federal tax credit.” He went on to discuss the joys of home ownership emphasizing “that a house isn’t just a financial instrument.”
I hear the voice of reason. It sounds like we are returning to viewing our house as our home.
