It appears that with the continued loan re-sets and deteriorating economy that we can expect similar market conditions for the next two years, perhaps longer in some areas. Generally the greater the amount of new construction (built since 2005), the larger the inventory.
Much of the inventory in Riverside is not in the MLS, it is being held by lenders are REO. This fact is important because it affect the Absorption Rate. Take the number of homes sold in a given area in the last month, and divide it into the inventory, and you will get a Ratio we all the absorption rate.
500 homes for sale, we sold 50 homes last month, that is an absorption rate of 10 months. A balanced market is considered to be 6 months of inventory.
The problem we are having in most markets in your area is that we constantly have new inventory in the form of REOs. When supply goes up, price goes down.
If you are thinking of selling next year I suggest you start consulting with a Realtor NOW to get a handle on what you need to do in order to maximize your chances of selling. If you need a referral please contact me via my Trulia profile.
Hope this is helpful
First Team Real Estate
First, the facts: Over the last 12 months housing prices in Riverside have dropped from an average of 18% to $300K from $365K. Over the same time, inventory has dropped 15% from about 3,125 to 2,700.
If we believe in supply and demand, these numbers can't be good. You can see the chart for yourself here: http://frclsrtv.com/2008/07/29/will-riverside-real-estate-pr
But the glass doesn't make the martini and numbers don't tell stories. The story today is that short sales aren't moving, inventories in some areas is approaching normal, and houses are selling again ... if you can compete with bank owned foreclosures.
So what, exactly, should you believe in? Well, there's enough bad news out there to make your eyeballs hurt. but I personally believe that the market will start to stabilize over the next year. It's never a bad time to buy or sell real estate. After all, they aren't making any more of it.
The question is always, buy or sell at what price? And that depends on each individual house and it's place in time. If you bought your house in the last few years, chances are you don't have the equity to sell. But if you've owned your house for a while, you might be surprised at what your house can fetch.
Thanks for the opportunity to help. You can reach me directly at 951-571-9229 or firstname.lastname@example.org if you need anything else.
Spring is often a hot season for home values and when coupled with very competitive mortgage rates, I believe the market in Riverside will continue to increase into Summer and taper off in Fall and Winter. You can see what your home is currently work by going to my website at http://www.JasonShawnMcIntyreBroker.com and clicking on the Home Values Tab. Just enter your address and your screen will immediately display comparable properties near you. If you want a full Home Value Report just call me at 951 201-3427 and I will be happy to provide you with a complete analysis. Thank you!
As the job market continues to improve so will the housing market. Today, if you are a homeowner looking to right-size your home up or down, my recommendation would be to sell using a real estate professional who does more than just take your listing. Having a specific Marketing plan, preparing your home to sell and exposure to many many buyers is the name of the real estate business today.
Call me to discuss a plan for your home should you want or need to sell for top dollar.
Even with this current situation, many people are still looking for their dream homes and they will purchase the dream homes that they like and plan to live in it for 5 to 10 plus years.
We moved from the San Francisco Bay Area and bought 21 acres income producing property here in the Temecula West Hills in 1999. I hate to tell you how much we paid for it. We also bought a small ranch (2.5 acres) here in the Wine Country in 2000. We think we did well on these two properites.
I have several clients that are looking at properties that are over 5000+ , and the one we previewed are over $1mil.
I just sold a REO property in Aguanga today. It was on the market as short sale for a while. The buyer said they really love the home on the 2.5 acre, they plan to buy and retire there and they said they would have paid even much higher price for it.