Real Estate Prices - Up or Down?
Okay, so you all know how I try and stay on top of the real estate news whether it be local or national. And here is a great example of WHY real estate is local... extremely local.
This article came up on my Twitter feed this morning. The gentleman in it, Gary Shilling, states that he expects real estate prices to plummet at least 20% more from this point forward. Interesting, because in this other article I was reading in Bloomberg, it says that housing markets are starting to stabilize. Can they both be correct?
The short answer is yes they can both be correct. Some areas are experiencing a shortage of homes for sale, such as Las Vegas. They have had an influx of buyers who came in and gobbled up quite a bit of the inventory, leaving the late comers to scrounge for what was left. This means the area would stabilize and prices may have started to even go higher as there is such a demand.
Other areas such as our local Inland Empire here in SoCal are not in such good shape. There is still quite an excess of inventory (homes for sale) and therefore in some neighborhoods the prices are still dropping. And in this particular area, it varies not even city to city, but neighborhood to neighborhood. Thus proving that real estate is local.
And with this demonstration, it just goes to show you that it is imperative you hire a local expert to be your Realtor. You need someone who not only knows the area and the pricing trends for a smooth negotiation, but also knows the schools, the events and the community so they can share this wisdom with you. It truly matters.
I try to stay on top of the communities I serve and be a local expert for all of them. So if you are interested in buying or selling a home, or if you simply have real estate questions, please feel free to contact me. I will be more than happy to assist you!