Have we hit bottom yet??? This is the question I am most often asked. Well it depends on your point of view. If you live in the more exclusive communities, I believe the answer is yes. If you live in the moderate to lower income communities ... maybe not yet.
But the market has rallied, the Fed did lower the rate and mortgages have followed suit and are down. For current mortgage rates go to Pink Flamingo Mortgage and see today's low rates.
In San Diego, the higher end communities have held steady. Some have even seen values rise a little. But other pockets in San Diego are down. Particularly the Downtown condo market. (Who told them to bring thousands of condo online all at the same time???) So where you live will influence how you see today's economy.
The Stock Market finished above 14,000 again, and looks like it will hold this time. But the Fed should look at another 1/4 to 1/2 point reduction in the Fed Rate to shore up this infant rally. Foreign markets have continued to drop rates and this has caused a weakening of the dollar. Good if you are an exporter, not good for the rest of us.
If the Fed helps us out a little more, this rally could start to turn the corner. Cheaper money will allow the banks to fund new housing starts with better mortgage rates. As sales pick up, value will begin to solidify and eventually start to rise. We have been through it before, but it never feels good while your in the middle of an economic stall.
The Presidential election should be good for the economy and rates. Incumbents like to see the economy growing, or else they might get tossed! So we will see what the future brings.