Is There Any GOOD News?
You might be feeling down and depressed if you watch the news on television or read the newspaper. Is there any good news in this time of challenge and change?
A couple of week ago, I attended a webinar presented by California Association of Realtors. Their economists DID have some good news. Here are highlights:
* While U.S. sales are flat, real estate sales in California are up. 2008 sales are up 12% so far over 2007, which will be the trough for California.
* California experienced a steeper decline than the nation as a whole, and we are ahead of the curve as we head towards recovery.
* From July 2007 to July 2008, California prices declined 40.3%. Some areas continue to decline even while sales volume increases. Good news? Homes under $500,000 are experiencing the sharpest decline. Homes over $500,000 are experiencing more stable pricing.
* The price peak for Riverside/San Bernardino area was July 2007. Our area is now 42.6% decline from the peak. Good news? Housing affordability in California has DOUBLED. In one year it has gone from 24% to 48%. Since first-time homebuyers drive the housing market, this is positive news.
* The peak of adjustable mortgages resetting was late 2007 and early 2008. Therefore, we are less likely to see foreclosures and short sales throughout 2008 and into 2009.
* C.A.R. economists project price stability in the second quarter of 2009. Sales bottomed out in 2007. We had a quick decline and are likely to experience a quick recovery.
Good news might be scarce, yet it ALWAYS exists in every market. If you are concerned about holding onto your home, give us a call at 800-895-5112. We’ll be happy to discuss your options and help you make the best decision for you and your family.
with blessings,
Claudia