will the value of houses in zip code 95403 ever go above where they are now?

Asked by Mhl333, 95403 Fri Sep 18, 2009

Help the community by answering this question:

+ web reference
Web reference:

Answers

3
Allison Norm…, , Santa Rosa, CA
Sun Sep 27, 2009
BEST ANSWER
To ask "Will the value of houses EVER go up?" is like asking if the cost of living will EVER go up.....of course it will. So, the question really becomes "when?". 95403 (Northwest Santa Rosa) primarily consists of mid to low priced homes, many of which were snatched up over the last 10-12 years by first time buyers and investors, (many of whom got in way over their heads) or home-owners who saw amazing equity growth and access to "way-too-easy" money through home equity loans. 95403 also consists mainly of working class families, many of whom have seen job loss or reduced income......If you take all of that into consideration its easy to see why this area has also seen a huge majority of the city's foreclosures and Short Sales.

While we will most likely not see huge equity growth again, I beleive we are close to, if not at, the bottom in the under $350,000 price point in this area. While the 50+% equity growth of this past decade was a phenomenon that will most likely NEVER be repeated, I still firmly believe in Real Estate as a solid long term investment. I also believe that North West Santa Rosa will retain its desirability as an area of affordable, family friendly neighborhoods....and along with that desirability will come scarecity, and in turn...........appreciation. Its simply the nature of the beast.

It is important to remember several things;

1. I am speaking of homes below $350,000, which is the majority of homes in this area. In this price point as stated in the previous answers, especially in the desirable areas of 95403, we have already seen increased values....a classic example of Supply and Demand.

2. Homes above the $400,000 range and up are a different animal all together. These higher priced homes, that had seemed almost un-touched by foreclosure, have begun to slip. With more high priced foreclosures coming into play, I believe this price point has a ways to go before hitting it's "bottom".

3. Much of this question of "when?" lies in the hands of the lenders who are literally controlling the market right now. With another large round of loan resets looming and the large inventory of already foreclosed homes waiting in the wings....the direction of the market depends largely on the which direction the lenders chose to go.

So, without a crystal ball....the "when?" is all a matter of opinion and speculation.....and keeping a close eye on changes in the local market. There are several good internet based tools available that help you monitor the market movement in YOUR neighborhood.

Hope this helps ~ Allison
2 votes
David Pittman, , Sebastopol, CA
Mon Sep 21, 2009
The first answer is accurately stated.
We are seeing houses coming on the market at low prices and being bid up over the asking price. This phenomenon is mostly in houses under $300,000.
First time home buyers and investors looking for deals are the primary bidders on these properties.
When prices are bid up it means that buyers see more value than the asking price. This response starts an upward price trend.
This action has not been seen in houses priced about the $400,000 so the "mid" and high priced properties are still seeing decline in values.
0 votes
Craig Saxon, Agent, Santa Rosa, CA
Sat Sep 19, 2009
No one can tell the future, but there's little doubt home prices will go above where they are now. It's important to realize prices were inflated largely due to the ability of people to buy homes they couldn't afford because they were being qualified for loans based on unsustainably low interest rates or a lack of verification about their ability to repay their loans. Once loans are properly documented and employment rates increase, putting money back into people's pockets, the normal demand for housing to qualified buyers should cause the increase in housing prices that existed prior to the 'bubble' in housing prices due to irresponsible lending and borrowing practices.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more