Home Prices Decline in July
According to the Long Beach Press Telegram, the median price of homes fell in July.
The year over year increases in the median (statewide) home price have been
below 20 percent going back to February. The report sates in 2004, home prices saw 20%+ gains each month.
Even with this 'beginning of the end', an increase in housing inventory was
reported for areas considered less affordable. Orange county saw a price increase of 9% from a year ago. [gee, a 9% return on your money in one year!? Yup, it's a bubble]
The interesting thing in this report is that areas that are more affordable,
are continuing to see increases. Compton for example saw a 36 percent increase since July last year. Bellflower and Carson were up 20%.
So, what does this tell us? Has the bubble burst? Nope! Affordability has
impacted the real estate market, just like it always does. The market has begun
'self-correcting' and prices aren't artificially rising like they were in the past. The market is beginning to normalize meaning its still a great time to buy & sell.
For in depth market analysis of you southern California home, please e-mail me.