Do you think the prices will drop further in Corona/Riverside (or in general)? If so by how much? Or you

Asked by Angelica, Corona, CA Fri Jun 20, 2008

feel the market is pretty much leveling out now?

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9
Sean Giorgia…, , 92553
Fri Jun 20, 2008
Instead of useless words and insignificant opinions, let's put real numbers on the table and see where that leads us.

248 homes have sold in Corona in the last 30 days. That's up 120% from the same period a year ago. Sold price is down 32% for the same period leaving us an average cost per square foot of $152. That being said, houses in Corona are sitting on the market for about 15 days longer than one year ago.

Now let's look at Riverside for the same period.

257 homes have sold in Riverside in the last 30 days. That's up 43% from the same period a year ago. Sold price is down 36% for the same period leaving us an average cost per square foot of $154. That being said, houses in Riverside are sitting on the market for about 8 days longer than one year ago.

So, that's where the market's been, but where is it going?

I don't know. But maybe a few more facts can help you draw your own conclusions.

It would take 178 days to sell out the existing houses for sale in Corona given the pace of sales in the most recent 5-week period. In Riverside it would take 281 days.

The most interesting thing to note, however, is that Corona has 646 pending sales! That's 40% of the inventory. By most definitions that makes it an extreme Seller's market.

And in Riverside? There are 724 pending sales in RIverside, but that's only 28% of the inventory. Meaning Riverside is still a Buyer's market.

I don't have a crystal ball, but not even an MBA can argue with thse numbers. I suspect inventory will remain stable for the next year or so as the rest of the short sales convert to REO sales. The $20 question is whether or not demand will remain high. If so, prices are likely to rise.

But remember, this is traditionally the boom season for real estate. By historical measures demand should fall. And if that coincides with rising interest rates or continued liquidity problems in the capital markets we could see lower prices.

So what's a buyer to do? Simple.

Buy a house that meets your needs at a price you can afford in a neighborhood where you'd like to live. And than let the economists and MBAs argue the details while you create a warm and healthy home for your family.

If you'd like the data that I used for this answer, or similar answers for any other Inland Empire city, feel free to contact me directly at 951-571-9229 or sean.giorgianni@gmail.com

Thanks for the opportunity to answer your question!
3 votes
Caligirl, Home Buyer, Riverside, CA
Sat Jul 12, 2008
Just a person needing to buy a home who has been studying the market here...

I wouldn't trust the realtors - sorry guys!

The market is not at its lowest point, not even close. Have you seen the economy, do you watch the news? Prices are still dropping, and Riverside is in the top 10 cities in the nation for forclosures, MANY of which have not hit the market yet.

Prices will keep dropping, no question in my mind. Just common sense.
2 votes
Jared, Home Buyer,
Sun Jul 13, 2008
I don't have a crystal ball either, but I'd expect at lest another 10-15% drop. There is not a price trend going in the upward direction right now, and it's gonna take a lot more than 3-5 years for this economy/market to recover.
Just remember. If you can't afford a home in the future because price or interest rate inceases, neither can anyone else in your position. Supply and demand dictates that prices will drop. Don't get worried unless the supply dries up.
1 vote
Lisa Camberos…, Agent, SANTA ANA, CA
Wed Jul 2, 2008
I think the prices are at their lowest, now
1 vote
Diana Margala, Agent, Rancho Cucamonga, CA
Fri Jun 20, 2008
Hi Angelica:

Sean has given you the information that we as Realtors use to help determine the market. On my web site (DianaM.com) you can see the market update for yourself on many of the areas in the Inland Empire, including Riverside and Corona, from January of 2007 to May of 2008. If you would like to receive the information monthly just drop me an e-mail.

Remember this is general information about the movement of the market. Many times different area’s, like zip codes, or nitch areas are different than the whole city, that is why it is important for you to work with a Realtor so that they can explain, what the market is doing and how it might affect your purchase.

None of us have crystal balls….the market is affected by the economy, elections, interest rates, gas prices etc… the most important thing is to make sure that you can afford your payments and that you plan on living in your home for 5 years or longer, to help insure that your investment is a good investment.

Good luck, make decisions with information.

Diana 909-945-5763
1 vote
Michael Barr…, Agent, Irvine, CA
Fri Jun 20, 2008
Hi there Angelica, There has been a lot of homes sold in this area and the inventory is shrinking slowly .
I can send you a report that shows the actiivity and price fluctuation for these cities and any other cities that you are looking for. Some experts say its at the bottom some say maybe a little more but regardless if the intererest rates go up which the fed has hinted at then any price drop will be nullified.
My Savvy buyers get the best of both worlds,besdt prices and low interest rates.


If you drop me an e mail I can send you some very informative reports
Kind Regards
Michael Barron
Realtor/MBA
First Team Real Estate
(714) 552-6817
michael-barron@sbcglobal.net
1 vote
Emma Lopez, Other Pro, Corona, CA
Tue Dec 17, 2013
But the NOD's are very high in the Inland Empire. The area is recovering but not to the point that people would like to be in.
0 votes
Jane Grant, Agent, Aguanga, CA
Fri Jul 24, 2009
Each area must be reviewed individually to try to determine if prices are going up or down. National statistics take the average for the nation and are only useful if one is studying "National Housing Trends".

In Riverside County, "Turn Key" properties are actually going up in price slightly. By studying "recent sold comparabless", you can tell if the area you want to purchase your home in is increasing or staying steady. The competition for the newer, move in ready homes has escalated to the point where we are seeing dozens of offers on the best and nicest properties.

Older homes that need work and areas farther from the freeways and shopping may go down slightly.

Consumers who are waiting until prices go lower may miss out on obtaining a home at the lowest prices. One only knows when the market was lowest after prices begin going up.

Interest rates are low now and could go up at any time. Also, the "First Time Buyer Federal Tax Credit", expires on 12/1/09. There are rumors that it may be extended and hopefully it will!
Web Reference:  http://www.soreal.biz
0 votes
Nancy, Home Buyer, Canyon Lake, CA
Sun Jul 13, 2008
Yes the prices will be dropping in 09 too then they will level out now homes are going for $100 a sq ft
0 votes
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