Housing Outlook: Where will the market be in 6 months?

While we don't have a crystal ball, we do have access to statistics & previous real estate trends. These numbers lead us to believe that 2010 will be a roller coaster ride which will include at least one more dip. The number of dips & how large those dips might be will all depend on various factors including, but not limited to: Continued government intervention in the foreclosure process & real estate markets as a whole, employment figures, the ability for loan modification programs to include principal write-offs or reductions, increasing availability of loans, investor activity, and much more! Our thinking is that we reached an artificial bottom of the market in August of 2009 in CA and ever since then we have seen artificial appreciation which has varied in markets throughout the state. A "shadow inventory" exists throughout CA and many other states throughout the USA. The "shadow inventory" that we refer to in this case includes all of the properties in CA that should have already gone through the foreclosure process, but continue to be held back due to miscellaneous circumstances. In San Diego County, alone, there are 20,000 properties which are in the foreclosure process, but have yet to be foreclosed upon. If all 20,000 of those properties were foreclosed on then they would represent a 200% increase in inventory. This would put an instant halt to appreciating values in San Diego County and result in further price drops. While we don't expect all 20,000 to be foreclosed on at the same time, we do expect quite a few properties in every county in CA to be foreclosed on throughout 2010. This will result in the market slowly changing from where we are today (Seller's Market) to a Buyer's Market by the end of 2010 once again. To stay on top of your local real estate market you need a Realtor who continues to educate themselves on current trends & future predictions. Contact Us.