When do you think the California Real Estate will come back again and why?
Submitted by foreclosures on Fri, 05/02/2008 - 2:22pm.
I'm trying to get information on how people think of the current real estate market and what is your main source of information.
Comments:
I for one believe the key is affordability. We are already seeing signs of it in the hardest hit areas where prices are off 40-50%. Buyers are coming back because it makes sense. You can now buy a home with 30 year fixed financing in these areas for very close to what it costs to rent. And unlike a fixed rate mortgage rents are subject to inflation.
I'm a real estate broker on the Monterey Peninsula and have been in business for 18 years. I can only offer my opinion based on my locality. But we also have our share of FCs as everyone else.
I really believe that our RE market will come back once all of the REOs are purchased and off the market. Now the big question is when ... based on stats from FCRadar, other RE brokers and our MLS, it could be about two years before that happens. I'm hoping its not too much longer.
Our sales are booming by some standards as investors and savy buyers are taking advantage of the affordability concept in pricing. Believe it or not, some REO properties are receiving mutiple offers. No one is paying attention to future appreciation ... what is that anyway???
Some buyers are now imagining buying a home on the Monterey Peninsula at an "affordable" price? This ideal is driving our market. I only hope that it can apply throughout the country.
James Frangella
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