Perceptions have changed because inventory has been low. A few weeks ago there was a report that foreclosure inventory was not keeping up with investor interest. As banks move more inventory onto the market, we could see stabilize. However, the picture here is more complex. For one thing, the average buyer doesn't want to take on a project or inherit someone else's run down home. They want move-in ready homes that show well. So, the current robust buying gives the impression that the economy is healthier. The other thing to note is investors are leaving the stock market for investments that may represent a better risk and right now the perception is that inexpensive homes are that kind of investment.
There has been an occasional analysis designed to lift our eyebrows. But, I don't dismiss them. The fact is home construction is way off pre-recession levels. Historic trends tend to hold, so we can expect that a population that still values home ownership will show up. Some say it will be an echo of the Boomer generation.
The nation has a remarkable population of people who are determined to beat the recession. When I see reports that 20 million or more people are unemployed, I see a healthy surge in housing coming. There already is a shortage of rentals here in Boulder County, where some estimate only a half percent of rentals is available. Boulder County and other Colorado areas have very attractive homes that eventually come available. People come here and fall in love with the scenery, the laid back living and the active lifestyles.
There will be areas that won't recover soon from the recession. Other areas are bound to recover. A huge Boomer population has started retiring. They represent more than half of my clientele. They will buy in Longmont and surrounding areas. They probably will ignore the foreclosure homes.
My advice is not to get too caught up in the gloom. Eventually these things the press is focused on work their way through. Call me an optimist.
Lynne French, Clayton, Ca.
This as others have indicated a hard question for anyone to answer including real estate agents. We may be a bit closer to the market and get a feeling for what is going on, but we agents do not have a crystal ball.
The Clayton area from 2011 compared to 2010 has gone down 13%. We would all like to think we have bottomed out and in some areas this is true. Again as stated there are niches within niches that are on the rise with multiple offers.
If you are thinking about buying or selling to get a truer picture I would suggest contacting a real estate agent to give you comps for your area.
Let me know if I can help.
If you're a fence sitter, don't despair. Mortgage rates are even lower. Who would have thought that the conditions would be good for both buyer and seller? Check it out.
If the government doesn't extend the tax forgiveness for short sales, more people will choose foreclosure which will drive the prices down again. Let's see what the new year will bring.
CHF Access half percent down flyer, pdf
Sheryl Arndt, standard needs list checked, pdf
Why Rent brochure
CHF Access income limits http://tinyurl.com/8lzf8he
Sheryl Arndt, Broker â€“ Sr. Loan Officer
Sorry if you're waiting for prices to come down more.
If you are shopping in Colorado, you might have missed the boat for the market bottom. But good deals come along all the time.
The general advice is don't try to time the market. Make your purchase when it makes sense for you - particularly if your plan is to stay for more than five years. The market may cool some over the winter. But, don't count on a big move. If supply keeps losing ground the way it has here, buyers won't get any big breaks.
Hire an agent to help you. By the time you find what you are looking for, it may already be gone.
PML of Longmont, CO
As far as selling a property before it hits the market, this is the seller's choice. Many sellers, especially in short sales, really don't want the home exposed to the scrutiny of the market. They are embarrassed. As long as the potential buyer offers full price many sellers would rather just get it sold as soon as possible. Again this is their choice. Many sellers want to have it fully marketed and try for a higher price or better terms based on competition. This is the advisable way to go for most.
I will be a bit more optimitic and say that things are showing signs of stabilizing in some price points and markets. As is everything in Real Estate the top 3 things are Location Location Location! Prices are, I prefer the word...adjusting to a landscape that is changing on a monthly basis and will continue to change through the first quarter of next year (and that is only as far as I can know about. If the meddlers in Washington and Wall Street keep jacking around it could be another year).
The proof is in the pudding. MLS analytics show some areas are up and down but the median is flat. Sales are up, inventory is flat, interest rates are down and we have a structural housing shorage in the Bay Area. Looks pretty good here, all things considered.
The USA is a banana republic in so many ways: massive debt, debased currency ready to collapse, waging wars against...everyone, police state here at home, etc.
Hunker down. Stabilized real estate = eye of the hurricane.
If you just go with the existing numbers for Clayton, then Iâ€™d have to say the market in your area could easily continue in the same direction itâ€™s be going for a while. Weâ€™re entering an election season, and markets tend to be soft during these times as uncertainty rules the day. In addition, Clayton is located out of the way and is not perceived as a real estate â€œdestination.â€ There is no real compelling reason to move to Clayton as compared to other parts of the bay area.
However, if you are looking at Contra Costa County as a whole, average prices are actually trending UP, and have been doing so for the past 5 months. Pending sales have risen sharply, inventory is decreasing â€“ all positive signs that a short-term recovering might be in the offing.
As stated by others below, there are so many factors involved â€“ and the key is location.
I've had an eye on the foreclosure stories. And, while there are a lot of factors that play a role in a stabilizing market, one important indication of stabilization is the foreclosure picture. The argument might be made that the drop is a function of the banks halting foreclosures last fall. Even as foreclosures continue to drop, there is a backlog to consider. You might have heard mention of the "shadow inventory." Some estimate that there are still 2 million homes that have to be absorbed by the economy.
On the plus side: The foreclosures are unlikely to return to previous levels. The trend is not toward accommodating more foreclosures by the states. California has a non-judicial system for dealing with foreclosures, but the state also reports a drop in foreclosures.
Bottom line: Foreclosures dropped dramatically and this points to stabilization.
Though, the drama of the national spotlight muddied the near-term picture for stability. We'll know more as events unfold this week. On the basis of the slowing foreclosures, though, we can expect the trend of slow improvement to continue.
PML of Longmont, CO
In addition, the "grapevine" is saying that Interest Rates may go up.
May I suggest talking to a local Realtor; my Broker.
Mike Rowland at: firstname.lastname@example.org
He is in El Sobrante, right next to Orinda.
Have a cup of coffee.
Good luck and may God bless
In other areas i.e. beach cities and other desirable hi end communities it has either stabilized or is even ticking up a tad. But there are no dramatic upswings that indicate that the market is experiencing a rigorous or enthusiastic bounce back.
There's still a lot of "shadow inventory" lurking in the midst. Just how much I don't even think the banks know. With unemployment, the federal and state budget crisis, fuel, food, education costs inflating the average person is struggling just to make ends meet let alone thinking about buying a home.
In my opinion, and it's just an opinion, we've still got a way to go before RE rebounds with any real exuberance. However, there are some deals out there. Especially for investors looking to buy and hold to rent/lease.
The flipping investor, at least in San Diego, is seeing a significant increase in turn around time and hard money lenders who are the feeding trough for flippers are seeing aging on their portfolios beyond 90 days in many cases whereas in the early days of the bottom ('07-'09) they were realizing less than 30 day turn around time.
As a general contractor, developer, RE broker, investor and property manager we are sitting on the sidelines presently waiting for the right market signals to pull the trigger. I'm a little skiddish about the SD market because I've noticed a lot of investors, many of them newbies, vying for the same properties which drives the prices up when values are going the other way.
I'm also seeing construction rehab going up which drives the ROI down all the more for flippers. The only comfort zone I see once again is in the buy and hold arena. If you're considering the purchase of a property for long term personal use or for your rental portfolio things may get a little better if you wait. But if you find a property you really like I don't think you'd be leaving too much on the table so I'd say go for it.
Some communities within every city have not only stabilized but statistics may indicate some increase.
A housing crisis in China or India may influence the economy in the USA, such as higher inflation and interest rates that will reduce the number of end user buyers. Let us not forget the banks may be holding significant inventory that may or may not come to market quickly.
If you want to be land Barron tomorrow, now would be a great time to begin building your portfolio. Talk with a knowledgeable professional in Clayton Ca for a real read on what is happening in your LOCATION.
We recommend that potential buyers and sellers keep themselves informed about their local market trends. This will help to be prepared to make a sound decision when the right time presents itself.
If you need a place to live, can afford to by a home, and plan on living in the same area for 5 or more years, then by all means you should do so.
In my area real esatate has stablilized and in some price ranges and locations has begin going up a little.