US home prices bounce back, after lowest of lows
The Standard & Poors/Case Schiller Index is showing that after the prior 3 quarters of the lowest of low housing prices nationally, home prices have shown a modest 3.6% rise. It appears that this is not the case for all areas, and regionally (Orange County) home prices have remained fairly stable, with some areas in the coastal communities doing pretty well.
There is some speculation that a backlog of foreclosures will soon be heading to market and may further depress home prices. Many major metropolitan areas are reporting home values reminiscent of the year 2000.
Based on continued high unemployment and increased scrutiny in lending practices many believe that home prices have yet to hit the true bottom. However the vast majority of private investors are buying up homes as quickly as possible. This would indicate that the people who are willing to put their money where their mouth is, any upcoming further depreciation should be small enough to cover with near future gains over the next few years.
Per S&P's index committee chairman David M. Blitzer "These shifts suffest that we are back to regional housing markets, rather than a national housing market where everything rose and fell together."
If you are preparing to invest in real estate in Orange County, CA, be sure to contact us so that we can help you to assess the local market area for your targeted investment. Among the services we can provide are fair market analysis, 30,60,90 resale values, and rental/cash flow analysis.