If you want to get an objective evaluation of housing price trends - read what the ecomomists and financial analysits have to say - not real estate agents. Agents have too much vested interest to be objective.
If that happens, and there is a very good chance that it will, many buyers will not be able to come up with the large down payments.
All of which make now a good time to buy. Prices are at their lowest in many years, interest rates are low and homes can by purchased with little money down.
Prudential California Realty
The government is doing everything they possibly can to keep rates low and will probably be successful for the time being.
How long these conditions will last is anyones guess. I can make these statistics available to you if you would like.
Are you talking about down by the water or further inland? Are you talking under $1.0 million or over. In Long Beach market demographics change neighborhood by neighborhood, and within neighborhoods by price point. Without my crystal ball (and I am sure you have heard this from every realtor you speak with), it is difficult to say if pricing will continue to drop. In some of these neighborhoods, like the Peninsula, we have not seen a signficant drop in values. In fact two properties closed recently, one in May and one in June at over $1000 per square foot. On the flip side, as interest rates rise, prices have to fall over 10% to make up for every 1% increase in interest.
All that being said, there are some great deals to be had in Long Beach. I live and love it here in the waterfront area and there is no place like it (in my opinion). So, look at your overall strategy. Include how much of the home price you will finance, how long you plan to stay, how soon you need to be moved, etc. Also, look at the trends in the neighborhoods and price ranges you like. Than work with someone who will negotiate a great deal for you. Dare to Dream.
Real Estate Consultant
RE/MAX Palos Verdes Realty
1. The affordability index has jumped 18 points in one year to 44%
2. At the end of the second quarter of 2006 homes were overvalued by 35%, today in So cal the are undervalued by 5.2%
3. If the interest rates do go up to what many experts predict 7% , this will outweigh most of any possible drop.
The homes prices will either go up, stabilize or go down. But either way a good question to ask yourself is how long do you plan on living there. This will make a big difference.
Hope this Helps
First Team Real Estate