Obviously people are hoping for some good news, since we have had years of negativity surrounding real estate. And the media doesn’t help.
It’s not an easy question to answer, since it depends on how specific you are being with regard to market – national? state? regional? town? neighborhood? The truism that REAL ESTATE IS LOCAL is certainly no exception when talking about where the market is headed.
What IS encouraging is that we are seeing more and more reports of shifts in the market in California, and elsewhere in the country, that may signal that better times are ahead, perhaps in 2012 but certainly beyond. While economists and real estate expert expert housing prices to decline in the next 3 – 6 months, many feel we will start to see a rise in prices by the end of 2012. We are seeing them in some markets now that have not experienced the dramatic drops we saw here in California.
Some other things we are seeing?
- Multiple offers
- More Cash Buyers
- Limited Inventory
We also know that the SHADOW INVENTORY is going to impact the market, with more homes at discounted prices (good for buyers) that will impact average housing prices negatively before things start to improve. This will vary by area depending on the number of foreclosures in the wings
A recent local article in the North County Times also reports some positive news – a decline in foreclosures, the lowest level in San Diego County since 2007.
We are also seeing an increase in rents, on average, and this is expected to continue. It is now becoming more favorable to buy rather than rent for many individuals.
Stay tuned for more updates on the issue of where the market is headed.