As this article describes, The Worst is not over yet for Housing in California. The double dip in housing, that's now taking place will linger on for many years to come. This will be the first time in 40yrs, that California, has not led the Nation out of a Recession. The Wait and See Game should be interesting!
Mathews Realty Group
R.E. Advisor/Investment Services
Self Direct IRA/401K Specialists
It might come as a surprise to many that California has 1.1 million vacant housing units. Back in 2000 California had 712,000 vacant units so over the decade we have increased the number of vacant units by 54 percent. At the same time total housing units have increased by 11 percent. The market has a potentially enormous number of homes that should fall into the sales pool. Keep in mind this figure does not include currently occupied homes where borrowers have stopped making payments. In California this is a large number. We are seeing home sales move on lower priced homes and you are seeing this pattern play out in mid-tier markets as well. The realization is coming slowly but as more and more homes are sold on the margins, future comparable home sales will be based on lower priced transactions (even if this means chopping $50,000 from a $500,000 home). This is what we are seeing in the median price coming down in many California cities.
I think you have many people that bought in 2009 and 2010 now regretting their mistake as they bought into a falling market. This isn’t the bottom so don’t get caught up in the frenzy.
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