However, bubble is on.
Carbon Canyon listings are now 30 percet over the bubble price, that is between 2002-8.
Yet, the economy is stagnant, the pay for all but public employees and corporate management is down ans inflation hit all daily goods from food to gas.
Ugh, maybe it has omething with the EU raiding the offices of Shell, PNP and Saatoit-the Norvwegian oil giant- for fixing the oil prices since 2002.
And that is even though gas prices are steadily going down in EU since last year.
So, if you are telling met hat attempt to sell a house on Carbon Canyon Rod for 550 000 that last sold for 525 000 in 2006 is not a bubble- it is now run down, or that listing of a house sold for 210 000 on Hay last sold in 2004 for 210 000 for 364 000 that you live on another planet.
Possibly personal profit planet.
To confirm what I answered you previously about what I believe in: "there is no bubble yet", today I saw this article on Wall Street Journal by Nick Timiraos with title "Trulia: Why Thereâ€™s No Home-Price Bubble" and he went on saying "The sharp upturn in the housing market over the past year has more economists and housing pundits worried about a housing bubble. But a new report from the real-estate website Trulia has a different message: chill out, thereâ€™s no bubble right now."
Also, in this article, "â€œTodayâ€™s price gains are actually still a rebound, not a bubble,â€ writes Jed Kolko, chief economist at Trulia."
I 100% agree with Trulia!!! They have smart and common-sense economists here!
Please read the entire article here: http://blogs.wsj.com/developments/2013/05/14/trulia-why-ther
I don't think there is a bubble any time soon :).
The real estate market turned its course since March of last year (2012), and though the prices have gone up quite a bit (around 30% or so) in local markets such as Orange County, there is more room to grow because house prices are still at a 20% to 30% lower than when it was at the top of the market. It took 6 years for the market to go back up since the bubble starting at the end of 2006, so it will take a few more years to to hit that top of the market again.
BTW, where are the houses that have prices from 300k and went up to 600k just within this year?
Real Estate & Mortgage Broker
Dalihan Realty & Financial
investors are having a field day. They were able to snap up properties that were distressed, rehab them (very nicely I may add) and then list them as standard sales and sale them at today's higher prices.
No one can say what will happen next. We can only try and adjust ourselves and prepare our clients to deal with current conditions, as they can change right before our eyes:)
Kawain Payne, Realtor
As off , we the banks hold it all and make the supply and demand what we want it to be?
That is what you call free market?
Well, that is what I call speculation on bubble by few whoa atrangling the market after they bought themselves good army of politicians and helpers in rela estate.
No wonder so many in goverment speculate on real estate and hedge funds.
In a sense, as long as we have an operating economy, whether it's totally free or not, we will constantly have bubbles. In housing, we've been riding a very long-term bubble for the past 60-70 years. It's been supported the whole time by government stimulus. When the stimulus dropped just a bit, as we saw in 2008-2009, the housing market corrected sharply.
Today, we're still riding that large bubble. With all the financial distortions from our central banks, a disproportionate amount of investment capital is being allocated in housing, the very definition of a bubble. So, we're inflating the bubble again, leading home prices to increase far faster than the underlying income and the imputed value.
As for when it'll burst this time, watch the policy actions of central banks around the world. Based on what they've collectively indicated, we're in for another 2-3 year climb.
I have not see a real standard sale for a long time, except for land.
The more I read these real estate agent, the more I think we do not need them.
All they do is give you "access" to listing book, you need to find th e property, they make an appointment and pass on paperwork if you pay what is asked.
A lawyer will do paperwork for few hundreds and sellers already have agents- who do little for them- because that;s the way to get MLS.
Maybe straight sale is better for us who want to sell -buy- we can just use the web. And save .
There is 6 million houses held by banks off the market in California, slowly falling apart.
Banks do not renovate the properties, they just look at the loan of their REO add 20% and put it up for sale, sometimes for higher prices than during the bubble. If that does not work in 60 days they go down but want cash.
"Investors" speculators, money launderers and other banks pass such REO from one another hiking the price.
Where is the supply and demand?
It is pure manipulation by banks we bailed out and let to get "too big too fail", by the way interest might go up.
It is just the same as gas prices- crude goes down now for over a month. Prices of gas are falling in Europe as well. In California they go up- we have 5 big oil companies and they skin us.
Why not talk about this so we can change it?
1. The bubble that popped in late 2007/early 2008 was driven by insanely easy lending policies. For going on 6 years now, the lending has been extremely tight and very solid. There is little chance all the new crop of loans being made will go into foreclosure.
2. True, interest rates are incredibly low that is helping drive prices. But the Fed isn't likely to let rates go up much until unemployment is way down. And if there is another recession the Fed can always ratchet rates down.
I think prices overcorrected towards the down side in 2009-2012. Now they are just coming back up to normal. If they go past normal towards 2006 prices, it might be getting bubbly again. But we are not there yet.
The real estate market often takes more time (few years) to complete its swing. In my opinion, recent price increases are just normal adjustment or back swing from its previous depressed state. The job market will be more likely the main support line for further increases in real estate. I am not an economist, but I think if the job market keeps improving slightly, then real estate may have its run of 2-3% in the next few years.
This is a very interesting time in the market.
Orange County Real Estate Group
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There are first time buyers, investors who can't buy find any homes at auction, people with money in CD's which aren't making much money, and people who want to sell and either downsize or upgrade to a bigger home
So prices are going up and will while interest rates are low. In the next year or so the market will settle with interest rates going up
This is the time to buy and sell
How can I help you get into a home ?
Ingrid Ski Realtor
Home prices have been steadily going up over the past several months and accelerating recently due to all of the competition on the market. The low interest rates are bringing more buyers to the market, while the low inventory is bringing prices up. Also, keep in mind that just because a home is listed for a certain price, it doesn't mean it will sell for that price. The home you asked this question from has been on the market for over 3 months. A well priced home in today's market will get multiple offers within a couple of weeks or days.
If you'd like to discuss the current market in OC and some possible options for you, please get in touch.
Joe Van Fossen
Keller Williams Realty