How Low Will Real Estate Go?

By
Commercial Real Estate Agent with NAI Tampa Bay

These places in America have fast-falling home prices that have yet to hit bottom.

Two weeks ago, Joyti Goundar, an agent at Redfin, a residential real estate brokerage, entered a bid of $420,000 for a three-bedroom, 1,625-square-foot La Crescenta home outside of L.A., listed at $299,000.

When she lost the bid, she wasn't surprised. In July of 2008, Goundar bid $559,000 for a two-bedroom Arcadia house, also outside L.A., listed by Wells Fargo for $459,900. That one received 105 bids, driving the price up to $628,000, according to Los Angeles County records.

"Sellers want to generate a bidding war, and it's working," she says.

So does this mean Southern California prices have reached bottom? Not by a long shot. Even with the bidding wars, prices aren't nearly as high as they were at the peak of the real estate boom. Values plummeted 31% in the L.A. metro area in 2008, according to the National Association of Realtors. And values still have a long way to go.

Based on historical balances of employment, housing sales, income, lending availability, foreclosures and vacancy rates, all dating back to 1982, home prices in the Los Angeles metro area still have 29% further to fall, according to Moody's Economy.com. The best real estate deals, it seems, are yet to come.

For full story, click here <-----

By Matt Woolsey, Forbes.com

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
Almost Anything Goes
Commercial Real Estate Guru
Investors
Realtors®
The Lounge at Active Rain
Tags:
forbes
real estate prices
markets

Spam prevention
Show All Comments
Rainer
60,099
Norma Brandsberg
Marks Realty Co. Inc., Lynchburg, VA, 540-586-9496 - Forest, VA

Well, the run-up in values in LA was HUGE! History shows that Real Estate goes up just a little more than inflation, so are right, there probably is a long way to go.

May 25, 2009 02:15 AM #1
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
55,585

Sean Dreznin

Commercial Investment Real Estate Agent
Ask me a question
*
*
*
*

Additional Information