Have Housing Prices Hit Bottom In Monterey County?

Have Housing Prices Hit Bottom In Monterey County?

All I can tell you is that I am seeing prices in Monterey County rising with each listing.  More than that, there are more buyers than houses on the market in this County.  Most homes are receiving multiple offers.  This can be frustrating for buyers who make offer after offer without success.  To be successful, there are a number of factors that prospective homebuyers must take into account.

Below is an accounting of home prices this year as compared to closed sales within the last year.  This is for a 3 bed 2 bath in Monterey with  square footage between 1500- 1800 square feet. The areas of Monterey are different, and this is only meant to show the upward trend in home prices as compared to last year.

SOLD:

ADDRESS                                     BED/BATH   SQUARE FOOTAGE           SALE PRICE   

118 Dunecrest Avenue Monterey     4 2|0            1,782                               $785,000       03/13/12

1340 Josselyn Canyon Road Monterey 3 2|1       1,750                                $640,000        03/09/12             

110 Spray Avenue Monterey                 3 2|0       1,680                                $649,000        03/15/12                                         

1011 West Franklin Street Monterey      3 2|0      1,582                                $520,000        06/07/11

890 Cypress Street Monterey                  3 2|1     1,522                               $550,000        08/19/11

2050 Via Taormina Monterey                 3 2|0      1,677                               $530,000        01/12/12

973 Wainwright Street Monterey              3 2|0    1,624                               $490,000         07/28/11

232 Mar Vista Drive Monterey                 4 2|1      1,753                             $375,000         12/29/11

151 Carmelito Avenue Monterey            3 2|0         1,593                           $311,850         06/13/11

Buying a home may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.

With home prices down 34% nationally since 2006 and mortgage rates at historic lows, homes have never been more affordable -- but it won't stay this way for much longer.

Stuart Hoffman, chief economist for PNC Financial Services, said he expects home prices to flatten out by the third quarter and start climbing by next year.

A number of factors will help bolster the housing market, he said, including a decline in the number of foreclosures and continued job growth. In addition, homebuyers will have better access to mortgages as they get their finances in order and improve their credit scores.

"This is a strong indicator that we will start seeing home price indexes, like the S&P/Case-Shiller, start to report home price increases this summer," he said.

Prospective homebuyers who've been sitting on the fence shouldn't worry if they aren't quite ready to make the leap. Analysts are predicting that the initial price gains will be modest, at least, in most markets.