Home Buying in 91784>Question Details

Nailhead, Home Buyer in 91784

Where do prices go from here?

Asked by Nailhead, 91784 Fri Jun 4, 2010

With the current state of the economy I don't quite understand how house prices have risen slightly over the past year, in the Claremont La Verne, Upland area. In anyones professional opinion will prices continue to go up, level off, or take another turn down?

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I think the true test of the market will be during the winter months when sales volume is traditionally down. If the market can hold or even gain some ground we might be looking up next Summer. If we lose ground in the Winter months it may be a problem for prices in the Summer
Web Reference: http://www.victor4homes.com
0 votes Thank Flag Link Tue Nov 2, 2010
Hi, I am a licensed and certified Appraiser. This is a loaded question with a long answer. Please feel free to call me anytime and pick my brain. Roland Corral Cell: 909-917-6176
0 votes Thank Flag Link Tue Jun 22, 2010
One more point to realize is that all of the links that have been given to you are links to the housing market as a whole, but not specific to one area as Emelia pointed out. If your reason to ask the question is because you are thinking of up sizing or down sizing, and staying in the same area, don’t forget that where you are planning to purchase has most likely been affected and will continue to be effected similarly to your home Realizing that now is the perfect time to make the change because of interest rates. If you are wondering if it is the right time to purchase and you don’t have to sell….again as long as you can afford the payments, it is the right time to purchase because of the interest rates and you will be capitalizing on the effect it will have on your income taxes.

Call me and we can discuss it more.

Diana 909-560-0145
Web Reference: http://www.dianam.com
0 votes Thank Flag Link Mon Jun 7, 2010
Prices will drop.

The head economist for Fannie Mae isn't subscribing to the price appreciation:
--
“Temporary tax credits change behavior temporarily,” Duncan said today at a National Association of Real Estate Editors conference in Austin, Texas. “It’s simply shifted demand forward.”

“It actually created some price appreciation that’s not supportable long term,” Duncan said of the tax credit.
0 votes Thank Flag Link Mon Jun 7, 2010
There are so many factors to take into consideration regarding the housing market. As you can see by the answers below…simple economics of supply and demand are one of the major determinations of pricing.

The key is this, if supply goes up then prices go down. Supply will go up because of foreclosures (which many times are caused by unemployment another factor in the housing market and every other market) then prices will go down. If interest rate goes up (don’t forget about all of that money that the government printed) then affordability will go down and many people will not be able to purchase the homes that they could now….causing demand to go down and supply to go up.

So if the supply remains as it is now about 3 month of inventory and interest rates stay between 4.75-5.25 then the homes will go up in price. If that changes and inventory increases and interest rates go up then the housing prices will go down.

Diana 909-560-0145
Web Reference: http://www.dianam.com
0 votes Thank Flag Link Mon Jun 7, 2010
Well my sources tell me that Bank of Americaa is going to take 700% more homes this year and last week a press release stated that 7 Million houses are going to hit the market from the Shadow inventory which will make it around 11Million Bank Owned Properties on the market, Plus the Commercial and ARM Foreclosures hitting the market. You should not just listen to one source of News because if you think it is bad now this second wave of foreclosures if going to be 2 to 3 times worse, if you think your property is worth $xxx,xxx,-- then try to find a home in your area that has sold for that amount within 30 to 45 days or see what that property sold for that is your real number.
Web Reference: http://www.we-pay-cash.net
0 votes Thank Flag Link Fri Jun 4, 2010
There are so many factors you need to take into account when reading news reports. California is not like any other state and the three cities you have selected are established neighborhoods where a lot of homeowners have lived there for many years and they are equity sales.
In all three cities these are the numbers:
Currently for sale:
208 Standard Sales homeowners have equity
72 Short Sales
Only 33 Bank owned homes
2 Probate Sales
Went Pending last month:
59
Sold last month
82

With numbers like this it is a sellers market - we can say if not one more home went on the market inventory would be wiped out in 3 months. The only way the prices will come down is if we get more inventory.

Interest rates dropped to 4.75% giving the buyers more purchasing power and possibly looking at a slightly higher priced home or attacting even more buyers to the market. We still have the California tax incentive so the buyers remain out in hoards.

A lot of the properties that are in the foreclosure process are modifying. Many homeowners have done this on purpose to get the banks to work with them. They are contracting lawyers, fiing for bankruptcy, or I have even heard selling the note to an investor and buying it back at todays prices from the investor.

So with the lack of inventory prices will not take a turn down in the cities you selected. Keep in mind this is a city by city scenario. Victor Valley areas and parts of Riverside are not in this same situation.
0 votes Thank Flag Link Fri Jun 4, 2010
Consider the article below. I posted a few excerpts so you can see it is worth looking at the rest.

Think housing is recovering? Think again.
http://money.cnn.com/2010/05/25/news/economy/housing_recover…

One critical obstacle to a housing recovery remains intact: supply. Until the number of empty homes starts to shrink, prices could still fall further.

Moreover, notes Joseph Foudy, a professor of economics and management at NYU's Stern School of Business, we're coming off of an artificial bump from the first time home buyer credit, which expired last month. He predicts the second half of this year will see sluggish economic growth and that housing prices, at best, will be flat for the next few months, while commercial real estate "is likely to see significant declines."

concerns in Europe could end up destabilizing housing prices further, which would dent consumer confidence -- not a good cycle to begin a recovery.

Moody's forecasts about 1.9 million homes will be taken from their owners this year, with a little over a million more going back to the banks in 2011. These can be added to the 6.3 million vacant homes currently sitting idle across America.
0 votes Thank Flag Link Fri Jun 4, 2010
The rise often times comes from the supply and demand. Many prices look like they have risen but if you factor in that many of these prices are including buyers concessions like closing costs and often times repairs. What is happening when they do this is what is called artificial inflation. If they continue to do this yes prices will continue to rise slowly. As in predicting the market many market factors take effect like financing, jobs, inventory and the economy. It is hard to make forcast when we don't know what the government and financial institutions are going to be changing or doing tomorrow.

Thank you for your interest.

PRUDENTIAL
John Santana
(909) 230-8300
johnsantana4homes@yahoo.com
0 votes Thank Flag Link Fri Jun 4, 2010
Below is one possible answer. See what you think.
http://www.housingpredictor.com/california.html
0 votes Thank Flag Link Fri Jun 4, 2010
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