when will real estate in CA go up again?

Answer 1

For those who doubt, real estate has gone down about 20% in San Diego.

Will it go up again? Absolutely. The question is "when" not "if", and if I could tell you that for certain, I'd be a multi-billionaire. I think the most likely time frame to resume an upwards march is Spring 2008, but that's for San Diego, which has been on the bleeding edge of this whole thing.

For those who kid themselves about how big the bubble is and how long the deflation will last, you are only setting yourself up to miss an opportunity. Prices for entry level detached single family residences are not going below $350,000, and they may not go below where they are now.

Answer 2

What people need to realize is that the real estate market as well as the stock market is a cyclical one. Every ten years or so the market peaks and then drops, we are currently on it's peak and are awaiting the drop. Therefore if you have real estate and want to make a quick profit sell now before it is to late and you will have to wait another 10 years for the market to peak one more time. If you are looking to purchase... wait a while. Thanks to predatory lenders and unscrupulous real estate agents, people got into the market expecting continuous growth that came without a foundation (definition of a bubble). Now the market has slowed and people are not realizing the gains that were expected... interest rates are rising and people are going to realize that they are way over there heads and must dump their property... which in turn just perpetuates this cycle!!!

Answer 3

In February 2009

Answer 4

Unless you just arrive to the US, California house market is so ridiculously overprice. Although everyone's profit is only on paper and pride boosting.

The question should be "When will real estate in CA go down again?". A nice determined Earthquake should do the trick.

Answer 5

As quotes of interest go down, costs go up. hence, costs have slowed because of the fact the cost industry is on the upward thrust. Now, the fees go decrease back to the widely used purchase industry. i might recommend protecting an eye fixed on quotes. while they arrive to a element which will point, you are able to look for genuine sources to circulate up back. quotes are nonetheless slowly shifting up and that's an prolonged technique. that's going to nonetheless be yet another 5-10 years no longer less than in the previous that industry sees something like it has contained in the previous.

Answer 6

Yes, it will. After current housing price tank about 20%.

How to value a property during market downturn?

Housing market continues to slump. Now we can calculate true value of a property easily. As price decline, we don't need to guess and factor in the potential price appreciation while calculating home value. Without the guesswork, figures are more accurate.

Let's use following example:

Today, a typical 15 years old, two bedrooms condo/townhouse is priced around $500,000 and $550,000 in Sunnyvale, California. Rent for similar condo/townhouse is $2000/month.

If you are a home owner, $2,000/month in rent means $20,000 a year in profit ($24,000 per year in rent, minus $4,000 maintenance costs). A $20,000 income is equilevant of owning $400,000 bonds or CDs, because current yield of 30 Years U.S. treasuries are 5% (5% of $400,000 is $20,000). Bank CDs have similiar yields.

In our example, the two bedrooms condo/townhouse is 20% to 25% overpriced. They should be priced at $400,000.

It is interesting to note that if we redo the calculation from buyer's perspective instead of seller's perspective, the figures are even more shocking.

Mortgage payment consists of two parts: mortgage interests and mortgage principal. The interests portion is similar to rent. If you pay interest, it disappears and doesn't add equity to the property. To fully simulate characteristics of renting, we assume buyer will apply for a zero down, interest-only loan.

It turns out that rent of $2000/month is equivelant to mortgage payment of a $340,000 loan at 7.0% APR. And comparing $340,000 loan to $500,000 or $550,000 price tag, from buyer's view, the two bedrooms condo/townhouse is 30% to 35% overpriced.

One may ask, why is there a discrepancy between two perspectives of the buyer and owner?

The discrepancy is a result of 2% differences in interest rate that buyer borrow comparing to yields of bonds and CDs that owners would get. We understand that buyer would always pay more. That is the premium of buying to own. However, looking from home owner's perspective, current housing market is probably 20% to 25% overpriced. We recommand investors to wait for a better entry point.

Answer 7

Go up? Are you nuts? When did it go down?! Real estate in Cali is ridiculously over priced. Small 2 bedroom houses are going for 300,000+ in "okay" (i.e. not so nice) neighborhoods...

Answer 8

um hopefully it wont since they are so damn overpriced as it is. I was just in San Mateo for the weekend, and a 3 bedroom, 1 bath, crappy little home was $779,000.00. My GOD who affords that? seriously. For the same size home, you could by for like $200,000 here in Reno and that is still overpriced. it's disgusting

Answer 9

Tuesday.

Answer 10

Any time, if the interest rate goes down.