Credit Suisse August Report

In my last post I promised to discuss when the downturn in real estate pricing is predicted to end. I am going to postpone that one post, because I just received the August report from Credit Suisse, and I want to share it with you right away. If you remember, Credit Suisse is a large investment firm and they do independent research in both the financial and real estate markets. Each month I am asked to take their survey and look forward to getting the results.

Click here to read and review the full Credit Suisse Report, but here are the highlights:

Headline:  Prices Dropping on Depressed Traffic

Buyer traffic was stable in August but still at a low level. Inventory is up. Buyers are concerned with jobs, weak economy, and lack a sense of urgency to purchase with expectation of lower prices. Even sale of foreclosure properties has slowed. The trend is expected to continue in the upcoming months.

So now the good news:  Interest rates remain low, lots of inventory to choose from and prices are down. This is a great time to buy. The cost of owning a home may never be lower. Even if prices go down, if interest goes up, the cost of owning a home make actually go up as well. If you are a first time buyer, there are still low FHA loans requiring as little as 3% down and low interest. If you are a move up buyer, you may feel selling your home now is selling at the low point of the market, but you can also buy up at the same low point. In many cases the price gap has narrowed for a move up.

Thanks for visiting my Blog again.


Posted by:  Larry Smyth

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