Aug 19 2009
L.A Times Report…Home Prices Rise. Further Evidence of Recovery?
Read the story below. Further evidence that we may be at the bottom and buyers are buying up bargains. More evidence that backs up my feelings as reported yesterday. I think you’ll soon see this hit the condo market and the mobile home market in Malibu. Those two markets are flooded with inventory and bargains are starting to show. A few years ago I would get calls asking if there are any condos under $500k and I’d always say no. Now there are several….nice ones too, with ocean views to boot!
http://www.latimes.com/business/la-fi-home-sales19-2009aug19,1,994564.story
The median Home price for Southern California in that article was about 47% below the high in July 2007. A lot of buyers I am working with see list prices today and say I want 5-10% off that, or even 20% off that, but it’s important to realize how low these prices have swung down- even if you buy at full list price, you are entering at a great point in the market. Buy the house you really want to live in, and enjoy it while you watch when real estate goes up.
The second part of that article about the Moratorium preventing another wave of foreclosures hitting the market- didn’t compute after I read this article about how the moratorium works http://www.sfbayview.com/2009/the-california-foreclosure-prevention-fraud-of-2009/
90 additional days on the foreclosure process if the bank hasn’t set up a Loan Mod Dept? That doesn’t seem like it would make much of a difference.
Its true though that California defaults are way up at 9%. The Dow has rallied back from its low in March 6,500 up over 9,000. I wonder where is the bottom in real estate, and if there will be another bottom in the stock market?
I was hoping this would last a little longer so I could get out to CA to buy a second home! I hope the bounce isn’t too violent on the upside.