Some interesting stats have come out for 2012 which indicate a robust market in 2013. California Associations of Realtors (www.CAR.org) reported that last year in California 1/3 of all homes sold for all cash, 23% of homes bought were second homes, first time home buyers were 39% of the market , a jump of 5% form 2011, and the number of foreclosures were down by almost 20%. In a recent speech by Carole Radoni, president of Bamboo Consulting, she stressed how important it is to take advantage of today's low interest rates. Not only do you save money, but 27% of your payment on a 3.75% loan goes to principal reductions as opposed to only 9% on a 7.5% loan. She expects rates to stay low for a while but then to rise, and encourages buyers to take advantage of the current market.
This market gives us a tremendous opportunity to build wealth and we need to look more towards the building of wealth than the appreciation that takes place in a growing housing market. Marin is one of the strongest markets in California and the nation and buyers need to recognize the opportunity we have in the coming months. As Warren Buffet said in a recent speech "Buying a home right now will be the best opportunity in your lifetime." We are looking forward to this year and helping clients build wealth.