I ask this because I really recently browsed through a real estate magazine for central california, and the average home was between $500,000 and $800,000. With the values of homes shooting up like this, homeownership is simply not a reality for the average working man. I keep wondering what the hell is gonna happen once there are no affordable homes to purchase?
2006-07-23 00:16:15 · 3 answers · asked by Treblacram 2 in Home & Garden ➔ Other - Home & Garden
Keep in mind...........
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!
With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!
For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!
With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!
For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:
http://www.brokerforyou.com/brokerforyou
http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm
http://www.brokerforyou.com
http://www.san-diego-for-sale-by-owner.com
http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us
http://www.brokerforyou.com/blogger/index.html
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://www.poway-real-estate.info
http://www.del-mar-real-estate.info
http://www.la-jolla-real-estate.info
http://www.los-angeles-real-estate-brokers.com
http://www.san-jose-real-estate-brokers.com
http://www.orange-county-real-estate-brokers.com
http://www.san-francisco-real-estate-brokers.com
http://www.sacramento-real-estate-broker.com
2006-07-24 05:11:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Chapman University came out with their Orange County and California Real Estate forecast last week. In general, they presented a couple of different arguments that the values of property in the area will level off or adjust upward or downward in a more reasonable manner.
With that in mind, home prices in San Diego are now starting to decline and are expected to depreciate between seven and ten percent over the next year. Hme prices in Orange County will most likely appreciate at a much lower rate, but still go up.
I don't currently have any data in central California, but the previous post to this question appears to have good data.
-4MySales.com
2006-07-26 17:52:46 · answer #2 · answered by 4MySales 1 · 0⤊ 0⤋
If there is no affordable housing then the population in CA will level or decline. The economy and house prices will decline. At some point the trend will reverse and the upward march will resume. This will happen over and over until the big quake. House prices will fall dramatically at that point.
2006-07-23 00:22:55 · answer #3 · answered by musingsandstuff 2 · 0⤊ 0⤋