Is it time to buy real estate in the Santa Ynez Valley?

While I can say without question that there continues to be a difference in perspective between buyers and sellers, a difference that has killed many potential transactions, there are some very attractively priced properties coming to market now. These include both "short pays" and properties where the sellers are quite serious about wanting to get out. "Short pays" are properties priced below that which is owed on them by the sellers. In many of these cases, the sellers paid substantially more than is being asked now and are having difficulty making the payments. The decision to accept an offer on a short pay is ultimately the lender's. I know of at least a few situations in which the properties are priced at about 20% LOWER then what was paid by the seller within the past two years. THESE ARE BARGAINS. I also know of properties in which the sellers simply want out, and these too, are priced down dramatically from where similar properties sold in the past couple of years. In a few cases, I feel that improved properties are being priced at land value. These include 5-20 acre parcels with homes, and in some cases second homes, horse facilities and other amenities. These are great opportunities for second home buyers and investors.....
So why are these "bargains" not being snapped up? Because the buyers are saying, "I will wait, the prices are coming down". This is where the buyers are not doing themselves a good service. The prices may come down some, then again, they may not. There is no gong set to go off at the bottom of the market. Unlike the stock market, where one can determine at most points in time the value of stocks and market indices, pricing information in the real estate market is very slow in coming.....and the use of median price information is often misleading when it comes to a single property. So how will that buyer know that it is "rock bottom" time? At the same time, interest rates on home loans may well be going up. The decline in the Fed rate has had an adverse effect on home loan rates!
So is it time to buy? The answer is "yes" if you find a property that truly works for you and you can get it at a price that represents some reasonable discount to what it was worth two years ago...perhaps 10-20%. A solid Realtor should be able to provide these data...The second part of the answer should be based on your time horizon....if you are not sure how long you would hold the property, this may not be the best time to buy.....I say this as I see bargains sitting out there for months. If, however, you are planning to hold the property for five to six years, I strongly suspect that you will be very happy with both your purchase and your investment.
The Santa Ynez Valley has proven to be a great investment over the years...it is simply magnificent, an easy commute to LA, and one of the most compelling lifestyles in this country. So, if you are waiting for the bell to ring at the bottom of the market....you might think otherwise....and get the bargains that the holdouts will miss. And in the meantime, you get to enjoy your wonderful property.