Rocklin Real Estate Agent - Did We Just See the Bottom?
We may have just seen the bottom of the real estate market with my most recent Rocklin sale. 5756 Terrace Drive was a bank owned home that just closed for $165,000. With 3 bedrooms, 2 baths, and 1,577 square feet, this home is priced just under $105 per square foot! Even considering this home was a bit of a fixer, it's a great deal. The average price per square foot in March 2012 was $141!
While this Rocklin home was in escrow, the inventory of homes on the market shrank and prices started to creep up. When it closed, I comped the neighborhood. It's easily worth $180,000 today not doing anything at all. Spruce it up with $10,000 in cosmetic repairs and it's probably worth $195,000 right now. It just closed last week!
There isn't a bell that chimes when the market hits bottom. In retrospect, can see the market's ups and downs. It is very likely that February/March 2012 will be the bottom the real estate market and we are now on the up swing. However, the huge question market is the banks. Are they going to continue monitoring the flow of foreclosures they release into the market, controlling the inventory of homes and keeping prices higher? Or, will they release more foreclosures this year, flooding the market with homes, and reduce buyer competition? Will more notices of default be filed by the banks which encourages more Rocklin short sales? No one knows for sure and there is a lot of speculation.
We may have seen the bottom of the real estate market or we may see further price declines if the bank releases their shadow inventory of homes! The next six months will be very interesting.
Rocklin Real Estate Agent - Did We Just See the Bottom?
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