Hat tip to Rick the Tuna for sending this article from the North County Times:
“The environment is really conducive to prices rising at this particular point,” said Alan Gin, an economics professor at the University of San Diego’s Burnham-Moores Center for Real Estate. “Interest rates are low, and prices are low.”
Most of the activity in the market is in the lower price tiers, where new homebuyers are trying to take advantage of the 38 percent decline in value since the March 2006 peak.
The index breaks homes into three price categories. The lowest category, comprising homes worth less than $297,000 in San Diego County, had the highest rate of growth for the fifth month in a row. Industry participants say tight supplies are driving up prices, with lenders slow to release foreclosed homes into the market.
I think there is always a 10% swing in what a home is worth.
If you’re selling and do all of the following – hire a great realtor, spruce up the joint, make it easy to see, and put an attractive price on it, you’ll get towards the higher end of the 10% range.
If you hire a lousy realtor, leave it ugly, make it hard to show, and price it too high, you’ll get towards the bottom of the range.
There will be more homes selling towards the top of the range when the market feels like it is heating up, but the internet provides all the data to keep buyers from going crazy and bursting out of that range.
It’ll seem like prices might be ticking up, but they should stay in the range. There should be plenty of supply just under the surface, waiting to come forth:
Expired listings from last year
Older folks who need money/no stairs
Don’t be buffaloed by any pundits who make it sound like there is a viable threat of spiking prices. There will always be an occasional lucky sale, and let’s face it – Southern Californians have a propensity to rush in and gobble up properties at any price. But there should be plenty of homes to go around.