Newspapers, television, blogs.... the economy isn't getting better. It is actually getting worse with each passing week. Where are we going to be in 1 or 2 years? How will our housing market look? Is this a good time to buy?
The reason for this post is I have watched the market for many years and have watched how our current economy has been falling apart. It seems as though the negative thoughts and assumptions of our economy getting worse is also having an impact on it. As a Realtor and Financial coach, I spend a lot of time helping client's figure out the market. Their question is always "Where are we going to be at in the next year or two years?"
As I see it, every market is different. The bay area is different then our metropolitan areas. Tennessee is far different than Southern California. Our Southern California market is taking a big hit but will recover faster than most areas in the country. We have have already taken some of the largest hits, price wise. In my city, Temecula, we have seen values decrease about 50 to 60% from where they were even 3 years ago, which some areas of the country have seen only 25% decreases. Hemet homes and right now have had more than a 60% hit on values.
It will take the housing market another 2 to 3 years to start it's recovery, if there is not a double dip in home prices. I do not foresee our SoCal marketing taking a much bigger hit. Maybe 5 to 8% max. We have already been hit very hard. Some parts of the country will see reduction in prices i'm sure over 10 to 20% in the next 3 years. Southern California though will be pretty steady and hopefully will start it's recovery soon.
Temecula Homes, Murrieta, Menifee, Hemet, Lake Elsinore, and surrounding areas are on sale right now! You can buy a positive cash flow house with 3% down. While everyone is worried about the housing market, investors are buying homes in large quantities. If you have money, the best place to put it right now is in Southern California real estate. Over the next 3 years, my goal is going to be to buy as much property as possible so when the market returns we will be taken care of financially. Anyone that is holding back is making a big mistake. Keep watching the real estate data coming out and do research yourself.
Skylar Lewis, Realtor