I actually read this in my paper newspaper so i kind of had to search for it online to show you. Here it is. This could be a sign that inflation is starting now that all those government billions look like its going to start getting injected into the general population finally. http://www.sacbee.com/business/story/1959514.html It basically says that the median sales prices rose over 9% from april to may. This is the sacramento newspaper so it doesnt cover all of california but here are the average home price numbers for the nearby counties from what they were in april to what they were in may... Sacramento Co. 160k to 175k Up 9.3% Amador Co. 180k to 209k Up 16% El Dorado Co. 310k to 325k Up 4.8% Nevada Co. 322.5k to 352.5k Up 9.3% Yolo Co 242k to 276k Up 14% Placer Co 295k to 295k Unchanged Sutter co 170k to 165k Down 3% Yuba co 156.5 to 152k Down 2.9% The article also says Prices climbed 12.3 percent from April to May in the nine-county Bay Area. The six-county Los Angeles region, including San Diego, saw the regional median rise slightly for the first time since July 2007.
Thats because the higher priced homes are now being forced into foreclosure, short sales. Mix is different.
Home sales are seasonal, they usually rise in the summer. Prices usually peak in or after summer too.. this seems a little early though..
median price is a poor statistic. the one that matters is price per square foot for similar properties.
you guys really love to walk around with blinders on. I suppose if North Korea ever dropped a nuke on us, you guys would say "Oh it was probably just a gas main that blew up" Those that saw the bright light from a neighboring town would call it lightning. No wonder 90% of you traders lose money.
price is going go up in Southern California. I know that because the brokerage I own sold about 20 properties in the last four months and we have offers on about 15 of our other listings. The real question is what will happen in the fall when and if all the foreclosures in bank hands come back out on the market. Right now we have very low inventory. But it is sort of artificial. nevertheless median price is not the stat we should be looking at.
Government / Fed: "Here are billions of dollars at 0 interest rates, go make some mortgages." Banks: "If you say so... Hey, you over there?" Walmart employee*looks around*: "... me?" Banks: "Yeah you. Come here, take this really low interest massive mortgage loan." Walmart employee: "Hmm. Okay. Hope rates don't spike." *house prices rise*
The way I see it is that there will be pockets of strength in certain areas of the real estate market for years to come, I think its going to a really extreme up and down market for the next 10 years, yea prices are up 10% however its meaningless. The reason being is that the government has created a temporary floor in the housing market, by creating programs to help those who couldn't afford houses and creating artificially low mortgage rates to stir up the housing market is not a way to bring back the housing bubble. The housing bubble in my opinion is still deflating and will continue to do so for the next few years, if this was a free market and there was not one helping hand or intervention within the real estate market prices would come down to where they should really be, the housing market is still being propped, why they cannot let the market take its own course still raises questions in my opinion. With intervention it only delays the process longer creating an environment of false housing prices.