Here's the difference between 2013 California's little bubble and 2014 reality check. Every 10 years California gets a little bubble in 2013 it lasted from 1/2013 to 8/2013 then our market in Riverside County went flat. Most people with a typical knee jerk reaction including God Almighty Zillow equated this to another rise in prices. In fact Zillow predicted an increase of values in Riverside County up another 24% in 2014! What Zillow did not take into account was the fact Dodd Frank and Fannie and Freddie are gearing down. January 2014 to April 2014 loan applications went down 70%!!!
How can the market prices rise when there is no one is buying and aren't applying for loans? Well that didn't stop the RE Agents from pumping their seller to high list prices, after all, when the sellers get ready they will reduce the price eventually.
In 2013 every other agent remarks were "multiple offers, highest and best to be considered." In 2014 end of May now I read "Sellers are Motivated" I guess so they priced themselves out of the market, it is not rising right now people! At least not by leaps and bounds!
Until we create more jobs, home values will slowly rise. The subprime predatory fueled RE Bubble will never be repeated. Get a grip America. Last year smart investors realized they could make more money with rentals than with stocks.
The run in 2013 was proof of this. This year we still have the baby boomers retiring and looking for homes close to family members. First time home buyers are having a difficult time with Dodd Frank and the FHA MI burdens. Even my VA buyers are on hold waiting to see it the market will drop again after being artificially inflated.
This I can say because I watch the mls and what is going on in my city, county, daily. I don't have to wait until six months later, after the results of the last quarter are in, nor do I stand on a soap box predicting outrageous increases to please Mr. Obama.
Common sense has always helped me determine state of our current market. Honesty has always been my path.
Wake Up America!
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