Some Facts To Know                                                            

• More than 1000 banks closed in 1930 - only 14 U.S. banks have been taken over in 2008
• There are 76 million households in the U.S. that own their home - 24 million of these homes are free and clear
• There are 52 million homes with mortgages - 97.2% of these are not in foreclosure, 93.8% of these homes are current on their payments

On a sobering note:

• Over 20% of homeowners with a mortgage owe more than their home is worth
• 40% of all foreclosures are non-owner occupied

How did we get here?

Decade    Homes Sold High    Homes Sold Average

1970's      3.9 million               3 million
1980's      4 million                  3.3 million
1990's      4.9 million               3.9 million
2000's      7.1 million               5.6 million
Resale numbers - the above does not include new home sales.

Sources: Wall Street Journal / Moody's Economy.com / RealtyTrac / NAR / Forbes

Real Estate is going to lead this economy out of it's recession. Real Estate created a boom 1999-2006 in the (California) market (and the job market), it's leading the economy, real estate market and jobs market corrections that we're experiencing now and it will will us back into an appreciating market again.

California has only 5.9 months of inventory (most being short sales and foreclosures) but below 6 months is 12 months less inventory than a year ago! January 2008 we had 15.3 months of inventory.

September 2007 vs September 2008 up 65% October 2007 vs. October 2008 up 111%!

We're gonna have a couple more waves then we'll be rocking again! People need to get out there and take advantage of this "perfect storm" for deals!

 I know people are scared, concerned about their jobs & the economy. But some, I know from the questions I get asked weekly, are simply waiting for the media to tell them it's ok, for the "herd to move". But that's the same mentality that caused peoples' bankruptcies and foreclosures for the last 2 years, is that "because the other kids are doing it"  mentality that will cause missed opportunity today.

Buyers need to get out there soon and take advantage of cheap money and even cheaper prices before the correction finishes. The only way we'll realize the true bottom is 6 months after we hit it. Why? Because the only way to track the "bottom" is to see 6 months of consecutive and steady inventory drop and price increase in a market area. I go on what I know (and yes I bought in this market, you bet I did)!

I know money is cheap, houses are really cheap and they may bounce a bit more but not enough to risk missing out by waiting too long. I have had people actually tell me they do not want to over-pay, so they are waiting a few more months...waiting for what? When the news is reporting it, you are too late!Just ask all those high rise condo owners in Downtown San Diego.

We are obviously in a recession and will be for a time but, as we are already seeing in California especially, there's plenty of demand for discounted homes. Many short sales and foreclosures are in multiple offer situations. There's money to be made in times like this but it requires us to take the emotions of our fears and apprehension and pour it into some due diligence and action.

I don't know about you, but I am fortunate to be working with some clients who get it. They are buying into 30% equity or getting $75,000 price reductions on fixers and buying first homes they never thought they'd own, etc. I watching people, within their means, push fear aside and invest in their future.