Thursday, November 16, 2006

Are we past the bubble or facing the great plains?

Carla Davis posted in RealtyTimes this week that the real estate market in Sacramento, California is experiencing continued slowing the average time on market now at 62 days. Once again, this is nothing that we were not already aware of. However, I do want to point out that the article states that price appreciation for this year will be only 1.5% (not negative!)

Now what I don’t have sufficient data to tell you is if this means that prices are now flat and that the price dip that we have all experienced is over. Personally, I hope that the worst is behind us, and stick to the observation that housing prices tend to cycle over a ten to twelve year period and that the Southern California economy is still growing which translates into more jobs and the need for more housing… We are out of land in Orange County by the way.

With this in mind, I am still bullish on real estate opportunities in Southern California. However, just to place a counterpoint on my hopes, I spent some time on the California Real Estate Bubble real estate blog and they are much less hopeful for the future of the real estate market.
So what do we do? If you are a real estate professional that is dedicated to your industry and prepared to weather this storm, renew your real estate license and keep on plugging away. I will do my best to provide you with tools to attract listings and close sales, and I still believe it is a buyer’s market. If you got into the industry to make a quick buck, it may be a while before there is gold back in them

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