Are the markets in a bubble?

By
Mortgage and Lending with Primary Residential Mortgage Inc. NMLS 3094 NMLS # 260747

I was listening this morning to one of the financial channels on TV and some real estate guru was talking about markets that have been appreciating to such a degree that they may be reaching a "bubble"! 

This got me to thinking about #Ukiah, California, and the surounding areas of #Willits, California and #Lake County, California. These are the areas that i work in. I have seen values in these areas climb 50-60% since the bottom of the market in 2011. The cost of housing in these areas are now pricing many borrowers out of the market. 

However, there is still not enough inventory to satisfy the demand. It has been said that a "normal" market is six months worth of inventory. In this area of #Northern California, there isnt that much inventory and the market is still in control of sellers. As long as there are buyers who can and will purchase, it would be hard to make a case for a market that has topped out!

I see 2016 being a repeat performance of 2015 with values continuing to increase. Unfortunately for some buyers, they will not be homebuyers anytime in the future, at least in this area of California! 

 

Posted by

Rick Costa

rcosta@bayeq.com

707-981-7349

www.rickcostamortgage.com

@rickcostamortg

 

 

NMLS # 260747 Representing Bay Equity Home Loans NMLS # 76988

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Rainmaker
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

No bubble but you should get what you pay for no more no less. I do believe that buying something, anything is prudent

Jan 14, 2016 01:02 AM #1
Rainmaker
797,909
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Rick - We certainly have not reached a bubble here in Arizona. We have low inventory, lots of new construction, and home values are increasing. I also expect more of the same in 2016.

Jan 15, 2016 10:07 AM #2
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Rainer
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Rick Costa

FHA/VA/USDA expert
Doing the hard to get done loan!
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