By Laura Reginelli
Real estate across the country has seen tremendous dips in pricing over the past few years. California in particular has seen a 22% drop in home prices in 2009 alone. The state has seen declining home prices for the past three years; however, things seem to be turning the other direction for California’s real estate market. Experts predict that California will see a rise in house prices in 2010.
According to Bloomberg.com “There’s this huge demand on the part of first-time buyers and investors,” Leslie Appleton-Young, chief economist for the Realtors group, said in an interview. “The demand for properties in fairly good condition exceeds the supply.” As prices are decreasing and housing becomes more affordable, it seems as if more and more people have the incentive to purchase property.
The increasing number of properties being seized for foreclosure has allowed Californians to purchase homes at remarkably low prices. As more and more of these homes are being purchased, fewer foreclosed properties are left. Many feel that this will lead to a drop in housing sales in California for the 2010 year. Experts are predicting that home prices will rise over 3% to $280,000.
Many explain that the housing market in California is split in two: a large number of sales in low-end properties while sales in high-end properties dwindle and struggle. It appears that the market may make a change again in the next year as housing prices begin to increase.
Sources: http://www.bloomberg.com/apps/news?pid=20601103&sid=ahkshtPMxRzI
http://www.latimes.com/business/la-fi-realtors8-2009oct08,1,6875575.story
http://www.mercurynews.com/realestatenews/ci_13507318
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