Nerdygirl87, Both Buyer and Seller in Bakersfield, CA

Property Prices on the decline AGAIN??

Asked by Nerdygirl87, Bakersfield, CA Wed Jul 7, 2010

It appears that property prices have dropped significantly in the past few weeks. Is there a specific reason for this? I noticed in Treasures South, for example, the house listings have dropped around 30,000.

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3
Jaffo Nerr’s answer
Yes, be ready for much, much worse for maybe a decade or more. But be ready with cash when no one thinks there is any hope and the ruins are ablaze and unemployment is at 60% or worse. Have the money. Don't borrow from satan's banks.
0 votes Thank Flag Link Mon Jul 12, 2010
Nerdy,

The fact of the matter is that market trends are regional. There are in fact, many areas across the country in which the average sale price of homes has increased.

It was generally understood that once the tax incentive program ended the real estate market would experience a slow down. The fact that interest rates have recently dropped will hopefully rekindle the spark lost with the end of the incentive program.

The interest rate decline may in fact represent better savings for today's buyers than the incentive program and again attract potential buyers.
0 votes Thank Flag Link Wed Jul 7, 2010
The buyers bribe died. No one buying a house gets $8,000 just because they buy a house. Interest in buying dropped. Future buyers got pulled into (now) past purchases and the amount of buyers wanting to buy is much smaller.

In may new sales dropped by 33%. Mortgage applications also dropped greatly despite exceptionally low interest rates.

I expect lower prices for some time to come. The future will show if I am correct or not.
0 votes Thank Flag Link Wed Jul 7, 2010
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