Current Home Prices Sunnymead Ranch Moreno Valley
Home prices in Sunnymead are rising!! Well, Kinda.... you can see that in May home prices spiked, but fell again in June. This increase in average price happend because a couple of higher priced home closed in May. Being that there has only been 68 sales total so far this year, we could see a slight bump in prices if we get a couple higher sales. In order to get a better picture lets look at the other months sales, mortgage interest rates, and available financing for the area.
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Sunnymead Home Price Chart 2015
As much as I would like to say the average home price is above $300,000 in Sunnymead Ranch, It looks like were just under that. The only month that occured was in May and in June it dropped just as fast. So in reality where are we really? Are prices increasing or dropping? The answer is both! We have to consider what is causing both trends to get a clear picture.
The Rise in Prices
The overall rise in home prices are atributed to two things affordability and demand. We can not have a rise in anything without both. So as a Real Estate Agent I would like to tell all my sellers that "if I can't sell your home, then no one can" but clearly thats not the case, because in reality if the buyer can't find a loan to buy your house, no one can sell it! So we need financing in place to make the Real Estate Market Turn, with the exception of cash deals. So if your not one of the people with an extra $300k under your mattress, then you have to resort to financing. The name of the game is borrow, the cheaper the rate the bigger the house. Which bring us to the next factor demand. What our FED controlled economy has done is followed the old motto "if there is no way, then we'll make one". We have seen the lowest interest rates in recent financial history, what that has done is create a demand for housing. Cheap money equals lots of buyers. The Problem is that sooner or later those buyers are in homes already and there is nothing to back them up. The pool of buyers is getting smaller.
The Drop in Prices
The pool of buyers is getting smaller and our FED is realizing that. So what do you do when you can create more demand? Exactly that! We can see that despite the fact our State and FED continue to make it easier for buyers to enter the market, it only makes a temporary gain before it levels out again. We have reached the point where Government has to continue and pump money into programs just to keep the Real Estate Market afloat, while the low interest rates affect other sectors of the economy such as bonds. At this point a slight increase in rates can send the economy spiraling downward again. The difference this time is we wont have the safety net of bailout.
The good news
Our Government is well aware of this and they continue to do everything they can to not let the bottom fallout again. The question is, at what point can they no longer keep the Real Estate Market float?
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