Back in 2009 I wrote a three part blog post, entitled "The Looming Double Bubble" For me - The handwriting was on the wall back then. It started with all the sub-prime loans and slowly worked it's way up to the million dollar mansions. Strategic defaults, (walking away when you can pay), have gone from less than 1% to 30%.
Home buyers today have a tremendous opportunity to become home owners but the wait and see syndrome has them frozen in time. The housing market has changed dramatically, and so should the attitude of buyers.
Once again, a Home is a place to live, raise a family, make fond memories that will last a lifetime. And over time - create and build lasting wealth.
Owning a home is still and always will be, one of the best investments you can make! Providing, of course, that you have the right attitude to go along with the buy!
Mathews Realty Group
R.E. Advisor/Investor Services
Self Direct IRA/Solo 401K Specialist
Home values continue to decline, outlook grim
San Francisco, Los Angeles and San Diego are included in the nation’s top ten metropolitan areas with the biggest drop in home values since the Great Recession. The latest Standard & Poor/Case-Shiller Home Price Index indicates the composite price of single family residences (SFRs) in the ten cities decreased 2.7% last year. Their composite values are now 30% below levels from the housing market’s peak in April 2006. Worse, no sign exists that price levels will rise soon.
The current price decline we are witnessing was fully expected to follow the premature home purchases induced by government subsidies in 2009 to mid-2010 ― by its end the public was not buying homes on their own volition. Market momentum of the artificially-inflated home prices built up and culminating with the housing price peak in 2006 was ill-fated to collapse, forcing home prices to return to historical trend levels. The continual drop in prices is a result of the real estate market correcting itself as property prices stabilize at their lower and more accurate evaluation. A reversal of the current decline in consumer confidence would be helpful.
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