Don't Take My Word For It
Trulia.com reported that as of January 1, 21 percent of homes currently on the market have experienced at least one price reduction. Read more..
Has La Quinta Home Prices Hit Bottom?
It's the question everyone is asking. Has La Quinta's market hit bottom? According to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), home sales in California hit bottom more than two years ago, and the median home price of an existing, single-family home reached its trough in February.
Myself and even some economists are forecasting another surge of foreclosures in 2010. However, C.A.R.'s economists expect that foreclosures will remain flat this year compared with 2009. Reason being that in 2008, lenders flooded the market with foreclosures, and as a result, the state's median price declined by historic levels. Conversely, in 2009, foreclosed properties were listed at a more measured pace, which helped moderate further declines in home values.
C.A.R.'s projects that the median home price in California will rise 3.3 percent to $280,000 in 2010.
What's ahead for La Quinta?
According to C.A.R., California remains ahead of the nation in market recovery because many first-time home buyers are entering the market due to affordable home prices, low mortgage rates, and first-time home buyer tax credits from the state and federal governments. Investors are also starting to jump back into the market as rental rates now pencil out.
Nevertheless, credit is still tight and unemployment remains high, which could hinder a full market recovery until 2011. Mortgage rates are expected to creep up by mid-year and close the year at nearly 6 percent.
For more information on the Palm Springs area and La Quinta's real estate market, please email me.
The Lori Bowers Group Desert Properties, La Quinta, CA
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