Southern California Housing prices - do you think they will keep dropping?

Question

Do you think new home builders will keep dropping there prices? Do you think it is better to wait another week or two and make an offer in December closer to the holidays? Would the deals be better?

Answer 1

In my opinion, Southern California housing is way over priced compared to most of the rest of the country. That is based on supply and demand. It makes no sense to see people living in mansions in Wisconsin that cost $200,000 that would cost $2,000,000 in Southern California.

That being said, I believe housing will remain soft for a while longer.

Answer 2

If your interested in buying a LARGER (3000+sq ft) home and like the newer home. Your best bet might be buy now. Builder have over built and having a harder time selling the larger homes, losing money every month on standing inventory. New phase of homes will be much smaller >2200 sq. ft. with that in mind new homes have higher property tax/mello-roos rates. Don't forget to compare the property tax/mello-roos rates. Waiting might also be a good idea if your interested in buying an older home. Many foreclosure auctions just about every weekend. Just a reminder that most of the auctioning companies charge and additional 5% total purchase price. Even if your not the auctioning type. Once the properties get recorded the price becomes apart of the compariable and the surrounding property values will go down. If you could wait lets say 6 months to a year. Better deals???? Who knows.

Answer 3

Real Estate is cyclic.

Supply and demand tells what will happened. If people are willing to pay the prices will continue up.

Data over 60 years suggests that the average yearly appreciation is 5%. California has proved to be one of the most volatile markets and has had swings, but the worst statewide was a drop of only about 4% in a given year.

You must keep in mind that if during the year it goes up 25% and then drops 18% it still went up, overall, 7%.

You have to look at the long haul to get perspective.

I'm in Utah and our units sold in October was down 44% from October 2006. But our prices went up almost 8%.

All that being said, you have to realize that zipcodes can vary dramatically. California can be down, yet your zipcode could be up.

Answer 4

CA is number one in the foreclosure rate, and prices are expected to drop around 25% in the next 2 years as there are more homes on the market and less eligible buyers. Read the business news on CNN, FOX and the others to see where the housing market is going

Answer 5

I do think that the Southern California market will continue to drop. It is very over priced and unless demand picks up, it will see declines in home values.

Answer 6

As costs of interest circulate down your belongings costs will commence going up. As people can borrow greater. And visa versa. i could commence looking and in case you come across one excelllent. Get it. on the 2nd is proabably a sturdy shoppers industry. Proabably negotiate slightly. and fairly some desperate sellers. yet rememeber that's going to take you some weeks or months to locate a place besides. So i could commence looking and saving a huge deposit Now! no rely whcih way you circulate. circulate to all of the actual belongings brokers you could now. you like to get on there books. So whilst a house comes obtainable you're on precise of the record. in case you purchase out of the paper you paid too lots. commence preping dude and save a watch on the industry.

Answer 7

No. The price of housing is overpriced ( http://www.a2dvoices.com/realitycheck/housing ). However, the Federal Reserve is trying to carefully use inflation to prevent the housing market from deflating ( http://www.a2dvoices.com/realitycheck/markets/ ).

In reality, our houses will be worth less compared to other commodities because the value of the dollar adjusts downward.

We are often burned when we spectulate, because the speculation becomes unsustainable.