Comments Off | Tuesday, November 24, 2009
Despite the positive signs, Is California still facing a bumpy road to recovery? Since unemployment is still rising, foreclosures are expected to accelerate in up coming months, and the luxury market is weak not only because jumbo loans are expensive and difficult to get approved but also because few buyers are willing or able to take a risk on pricey properties. Which is saying prices are likely close to the bottom or at it’s bottom—expects some additional pressure on prices as tens of thousands of foreclosed properties enter the market.
But now that the tax credit has been extended and expanded, home sales increased in California compared with the same period a year ago, while the median price of an existing home declined over 25%. Is this the sign of stabilization in the Real Estate market? Survey respondents indicated that attractive prices and low mortgage rates were the leading factors motivating them to buy. First-time buyer and investors are jumping to take advantage of state and federal tax incentives, low interest rates, and prices that are more affordable than they have been in many years.
The glut of bank-owned properties on the market has kept California’s housing inventory stocked, giving buyers many options, with this, home buyers have been devoting more time to considering and carefully selecting their home during the researching and buying process. But not for long inventories continue to decline according to the National Association of Realtors®. Is this the sign of real estate market in recovery? Yes, real estate markets are staging a modest recovery in the Bay Area’s peninsula region and that sale prices should remain stable for the near future.