Real estate in Glendale,CA?

Question

I live in Glendale,CA and the houses here are off the charts. the prices reach very high degrees of money amounts. Are there any realtors out there that can tell me if it is going higher or lower?

Answer 1

California Housing Market

Southern California housing market is already in negative territory. So, we don't need address it separately.

Let's talk about the San Francisco Bay area.

SF Bay area housing market is going through the early stage of correction. It is likely to take a couple years to resolve.

During 1990's there were times when housing market in SF Bay area went negative. It started in 1990 and sellers, who entered the market at that time, had to wait until 1997 to unload their property with a gain.

Today, in 2006, we are in the early stage of another housing correction . Please see this page:
http://www.viewfromsiliconvalley.com/id157.html

The "Year over Year" medium price for San Mateo is -3.0%. If we consider inflation, then that is -6.5%. Because inflation tops 3.5%. For Santa Clara county, the gain dimished to 0.8%. That is lowest ever in the past 5 years. If we count inflation in our valuation, then it is -2.7%.

In addition, sales volumn drops dramatically, which means high end properties garnished most of sales, keeping the medium price high. While less appealing properties stays on the market longer and longer.

Inventories build up as sales down. Inventory for single family grew to 2222 units in July from 1500 in January this year. Condo inventory grew from 658 to 841 units by July from January. Why is inventory growing while summer is suppose to be a good selling season.

It is true that Silicon Valley is less sensitive to high rates, because engineers have more income. I doubt they can escape the correction though. They certainly didn't during dot-com in 2000 bust.

How much will real estates drops in Silicon Valley?

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 2

Because there is no new development in Glendale, the prices will continue to climb. Evenin the early 90's, prices in Glendale were appreciating while the rest of Southern California was declining.

Regards

Answer 3

Attend open homes. additionally, %. up the close by actual belongings books that they provide out for unfastened. detect some homes you like and make contact with the itemizing agent and ask to work out the dwelling house. that provides you a great gamble to fulfill some close by brokers and notice if there is anybody you mesh nicely with. We used Remax with our final purchase/and sell. notwithstanding, i would not base my determination on a particular business enterprise call....each realtor is diverse and unique. attempt to stick with a business enterprise that has a greater nicely generic call (none of those discounted costs places or tiny agencies) so which you be attentive to you have become the main precise preparation achievable. If achievable, it may well be stunning if the agent grow to be on the threshold of your age, so as that they are in a position to narrate to why you're finding for particular good factors or places, and can greater advantageous foresee different residences that is optimal for you that according to probability you're overlooking as being quite unfamiliar with the section. stable luck! check out quite a few homes earlier making any provides!

Answer 4

It'll be going lower. Market cycles. We've already hit a peak, as you can see in the market.

Answer 5

Move to Utah...... I just bought a five year old home 5 bed 21/2 bath 3000 square ft. 180,000!!!!!!!!!!!

Answer 6

it will be ;lower.hear is why

http://www.breakingbubble.com/index.htm