A few months ago I suggested that price stability would be the key to solving a lot of the Real Estate problems that we face. I also said that foreclosures and short sales were the single biggest reason why prices have fallen so much-no big stretch there. I have also pointed out that currently the number of foreclosures is actually only a third of what it was a year ago, with the supposed "wave of foreclosures" never occuring, and according to many experts unlikely to ever occur. Our inventory in Santa Clarita today is less than 480 homes-the lowest it has ever been in my 19 years of selling real estate. Prices SHOULD be going up, but aren't unless the property is under $450,000, and only then in specific situations. Now, let's be really honest with each other. EVERYONE wants to know when prices will stabilize and go up and EVERYONE wants to be right and say "I told you so". It's human nature and a lot of money is potentially at stake-for buyers, sellers and lenders. Real Estate
Neal's Blog
Every year in December I write to all my friends and past clients to give them my predictions about Real Estate coming into a New Year. I usually include things about interest rates, new construction, business moving into Santa Clarita and other issues that affect value. More than anything else though people want to know if the value of their home will go up or down. Sometimes it is pretty easy to predict, lately it has been incredibly hard. Lets start with the basics and then get into an issue that has become by far the biggest question mark in Real Estate-"Shadow Inventory". As I have recently reported, we currently have the lowest amount of inventory that I have ever seen in 19 years of selling Real Estate. In a Valley of over 200,000 people we have UNDER 500 homes for sale. New listings in the lower price ranges are often met with multiple offers. If we weren't hearing every day about unemployment, rising notice of defaults, appraisal challenges, and coming off of the