Towards the end of this youtube tour, I mention the price ranges around the North SD County Coastal region, and note that there probably won’t be much change in 2012.
1. The inventory is so thin that there aren’t enough comps in either direction to change the trend, up or down. There might be a flurry here and there, but overall there won’t be conclusive evidence.
2. The banks/servicers might increase the foreclosure production, but not enough to impact the market in a big way. I wish they would flood the market with quality bank-owned properties at attractive prices, and create some real market clearing.
It would ignite the market, and buyers would rush in to get a bank deal while financing is cheap. We know what happens when buyers rush in – it creates frenzy-like conditions, and the appearance of pricing going up. I hope it happens because the market needs it, but it would be a nightmare for me – all my buyers want deals!
3. Sellers with equity will still think it’s a bad time to sell, keeping inventories low – especially of quality homes.
4. Any catastrophic events – Europe implosion, double-dip recession/unemployment, earthquake, Chargers winning the Super Bowl, etc. would cause the market to freeze up until the Fed can print enough money to solve it.
5. Next year, politics and the election will be more distracting, which causes indecision/inaction.