Price Of Real Esate Dropping ?

Question

Okay , if this is true is it affordable to buy a home in southern california . ive only took economics for a semester , and im only 15 ,but i was wondering if anyone can like explain what this article meant . its on the front of yahoo. home . i didnt read the whole thing because some of it made no sense ..... and i wanna let my parents know about this ... http://biz.yahoo.com/weekend/prop_1.html

Answer 1

Affordable is relative to your income. I think personally as a Realtor that the market is flattening out due to the increasing interest rates. Dropping, maybe in some places, but I think the term used is adjustment. I haven't really seen any prices drop.

Answer 2

The article says that prices for homes in California are still increasing but at a slower rate than before. This means that the longer you wait to buy a home, the more expensive it will be to buy.

But these price increases cannot go on forever. Almost nobody has enough money to pay cash for these homes. Everybody is borrowing huge sums of money to buy these homes. And there is only so much debt people can accumulate before they will run into difficulty with paying it back.

The government has been increasing interest rates to control inflation lately. And these higher interest rates have increased the amount of money people have to pay back for their loans. Many people cannot afford to borrow money for buying homes anymore.

If the interest rates increase anymore, then some people will have to sell their homes because they will not be able to afford the interest payments on their loans anymore. And in that case, prices for homes may begin do decrease.

Answer 3

I dont know about in Cali but nah mean Im from Philly and Prices are increasing ova hea!