The markets are in an apparent free fall, the economy is in turmoil, and everyone keeps asking variations on: "Should I stash my cash under my mattress…or go bargain hunting?"
Clearly, everyone has different tolerance for risk, but here's the advice I'm giving my clients right now.
On the sell side: If you don't have a major life event forcing you to sell right this instant, do everything you can to hold tight.
If you must move, consider renting out your current home and then renting in your new community. This buys you some time while the markets stabilize.
On the buy side: You can find deals, especially if you have cash. It's anyone's guess where we are in the downturn cycle, but if you can buy and hold for at least five years, now's a good time to start looking.
In the Central Valley, we're seeing single family homes that are cash flow positive for the first time first time in a generation.
Here in San Francisco, home prices have dropped an estimated 5% to 15% from their peak, depending on who's crunching the numbers. Whether they'll fall further, and by how much, is the multi-million dollar question.
My clients are getting their financing ducks in a row now, and looking at plenty of properties so they'll be ready to jump when we find the perfect place at the perfect price.
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