Home prices reach a bottom: Zillow

  • metta

    Posts: 39143

    Jul 25, 2012 5:50 AM GMT

    Home prices reach a bottom: Zillow

    http://articles.marketwatch.com/2012-07-24/finance/32806435_1_home-values-zillow-chief-economist-stan-humphries
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    Jul 25, 2012 6:37 AM GMT
    It's why my husband and I had found it a good time to invest in real estate over recent years.
  • CuriousJockAZ

    Posts: 19136

    Jul 25, 2012 2:32 PM GMT
    Absolutely true that the real estate market is back in a big way and the Phoenix housing market is leading the way. I have never been busier --- and it's summer in Arizona. Excellent sign.
  • HottJoe

    Posts: 21366

    Jul 25, 2012 2:41 PM GMT
    CuriousJockAZ saidAbsolutely true that the real estate market is back in a big way and the Phoenix housing market is leading the way. I have never been busier --- and it's summer in Arizona. Excellent sign.


    That's great to hear! Although we've had our differences, I wish you nothing but the best!icon_biggrin.gif
  • CuriousJockAZ

    Posts: 19136

    Jul 25, 2012 2:54 PM GMT
    HottJoe said
    CuriousJockAZ saidAbsolutely true that the real estate market is back in a big way and the Phoenix housing market is leading the way. I have never been busier --- and it's summer in Arizona. Excellent sign.


    That's great to hear! Although we've had our differences, I wish you nothing but the best!icon_biggrin.gif



    Well, thank you Kitty kat icon_wink.gif
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    Jul 26, 2012 4:41 AM GMT
    http://www.doctorhousingbubble.com/expensive-homes-california-home-prices-up-low-interest-rates-2012/

    "It is now almost a universal mainstream headline that housing has reached a bottom. Of course little is mentioned about the ridiculously low mortgage rates that have aided in covering up stagnant incomes to accomplish this task. Yet a nationwide bottom should not be confused with regional troughs. The summer selling season has been hot for California. Home prices are now at two year highs coming in at a median price of $274,000 (still far from the $484,000 peak reached in 2007). Yet is this positive with California facing a 20 percent underemployment rate and massive budget deficits? There is no doubt that the recent push has come from two sources; low interest rates and controlled inventory. Roughly 30 percent of California home owners are underwater. This works out to be 1.5+ million households. Yet California only has about 170,000 homes for sale on the MLS! You have nearly 10 times the number of underwater homeowners compared to the homes listed on the MLS.

    ...

    According to the Zillow Home Value Index prices rose to $149,300 (compared to the NAR figure of $189,000 for existing home sales). Now this is important to examine in light that California has a 20 percent underemployment rate and the median home price is $274,000. The median California home is valued at 80+ percent higher than the nationwide priced home using the Zillow figure. With major factors lined up to hit the market it is too early to call a bottom for a place like California especially in overpriced markets. Even close to us, in San Bernardino and Riverside good deals can be found. Yet LA and OC still look to have pocket bubbles.

    ...

    It should be abundantly clear that the recent rise in home prices is being driven purely by controlled inventory and the insanely low interest rate. Those that are obsessed only with their backyard and rudimentary calculations need to pay attention to what is going on in the world (or in the state for that matter) with bigger macro issues. The economy is slowing down and storm clouds are brewing in Europe. China is now looking like it will have a tougher landing (keep an eye on the ridiculous Canadian housing bubble to see the impact). It would be one thing if jobs were being added and wages for households were holding up and improving but that is simply not the case.
    "
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    Jul 26, 2012 5:15 AM GMT
    CuriousJockAZ saidAbsolutely true that the real estate market is back in a big way and the Phoenix housing market is leading the way. I have never been busier --- and it's summer in Arizona. Excellent sign.
    I wanna buy something really cheap and small here...as a vacation home.
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    Jul 26, 2012 5:45 AM GMT
    I'm not so sure about rock bottom. But prices seem to have stabalized and inventory isn't as abundant as it was last year. I think now is an "ok" time to buy a home, if you're going to live in it for a while. If you're looking for investment/rental property, definitely buy now.
  • metta

    Posts: 39143

    Jul 26, 2012 6:10 AM GMT
    paulflexes said
    CuriousJockAZ saidAbsolutely true that the real estate market is back in a big way and the Phoenix housing market is leading the way. I have never been busier --- and it's summer in Arizona. Excellent sign.
    I wanna buy something really cheap and small here...as a vacation home.


    Does that mean that you have learned to enjoy the weather there? icon_smile.gif

    I wish I was flush with piles of cash to buy a bunch of apartment buildings right now. I have heard that Nevada has some good deals but I can't see managing them from California. I have also heard of some crazy cheap stuff in Texas.

    My home value has dropped below what I paid for it 10 years ago but I'm not underwater. I hope that my area has hit bottom. I would love for it to eventually go back up. I knew it was going to drop...but I would have never imagined it dropping as much as it did.
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    Jul 26, 2012 12:11 PM GMT
    Columbus/Central Ohio has come back pretty strongly in the last six months, but this market is real linear and has always been like that as opposed to cyclical like LA with approximately 14 years peak to peak and trough to trough. No market is really ever balanced, but we’re about as close as it gets with right around six months of unsold inventory.

    I don’t routinely do residential, but that is how I got started in the business before a made a pretty quick switch to the commercial side. Since I work just about anywhere in North America, I do keep a pretty close eye on the local residential markets.