Home Buying in Arcadia>Question Details

sunnyjong, Home Buyer in Arcadia, CA

all high prices in arcadia, is another bubble going to pop soon in 2 years???

Asked by sunnyjong, Arcadia, CA Tue Feb 19, 2013

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Arcadia is very short in inventory. Days on market is average to be less than 20 days with multiple offers. There were very few short sale or foreclosed properties in Arcadia last year. The banks are not holding off the REO inventories in Arcadia. There are plenty of oversea money coming into Arcadia. Prices will continue to go up in Arcadia at least til the end of this year and probably into 2015. When the cash buyers cleared the air and interest rate goes up, then, prices might level off. Demand for Arcadia, San Marino and South Pasadena is still very high at this time. Even there is a bubble, the areas with school district will hold their prices quite well. Sellers may want to cash out in Arcadia now because the return on investment is greater in other distressed areas. Higher risk with distressed locations, but greater percentage in returns. Buyers are coming into Arcadia for the school district and the city is centrally located with many shops and restaurants.
0 votes Thank Flag Link Sun Mar 24, 2013
As you've heard about bubbles, people always say "it's different this time." So, while we could be at the beginning stages of a bubble, here's what different about this time:

Buyers are paying cash for properties.

Without financing, this means the market won't pop due to distressed owners. However, as soon as these cash investors find a more preferable investment, which seems unlikely, then the market could pop.

As for how soon, it's impossible to tell. From what I've been seeing, we could be in the midst of a 3-5 year cycle.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Wed Feb 20, 2013
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