As an appraiser I am asked daily about housing market predictions. Last I checked I do not have a crystal ball better than any other Economist. However, what I do know is several things that may put things into perspective.
My job is to analyze a multitude of factual data in the past and present to understand a clear picture of an overall neighborhood and market. Sometimes different neighborhoods are quite different than overall statistics published by major news outlets. Southern California as a whole may be down 10% - 15% since January of 2006, in some neighborhoods it could be down 30%, while some holding an increase +4%. Where do you fall? That is where an appraisal would be helpful if you need this vital information.
Next, most importantly, the Southern California region has increased 80%-88% overall since 2000. So, if you are depressed look at a specific example of a house that was purchased for $199,000 in Aug. of 1999 and was worth $565,000 in 2006 and now $490,000. Are you still depressed?
Lastly, I have also seen some you who think your house is an asset and have refinanced up to 12 times, yes believe it, between 2001 and 2007 and now you want you know why this is happening to you. My professional advice is to talk with a financial planner and stop cash out refinancing your house. You can refinance for a better rate and pay another loan off, fix up an old house, ONLY if it won't bankrupt you if the market fluctuates.
California will sustain this sub-prime fallout and housing stabilization. Will you?
Comments(4)