When it comes to Fiscal Cliff’s and those sorts of hardships that will place the John Q public at risk, I say don’t do it 🙂
However, it may be something that is unavoidable. It will not be like jumping off a cliff with jagged rocks below with super frigid waters. I think it will be more of a fiscal slide.
We have watched as the housing recovery has started to proceed. With home prices in the Santa Clarita valley cities rising since September of 2011. How much, maybe your very next question – somewhere in the neighborhood of 8 to 12 percent from the bottom of the real estate market. If we track back to the low point in the real estate market, you will see that the price per square foot has increased within these percentages. click here to see our interactive pricing page – with sliding graphs to see what I’m talking about in a more factual nature. We have also placed PPSF – Price per square foot intel at this location for the Santa Clarita Cities.
If you bought a home last year – September 2011 or before, and if you paid 400K for that home – you could be expected to pay $440K today. This is an average only and will adjust between specific parameters within the 8-12% spread. The home prices also are dependent on Quartile approach to real estate Intel. Splitting the home price market in 25% chunks. With the top Quartile being the most expensive homes and the bottom quartile being the lease expensive 25% of homes.
With the dilemmas created by the Fiscal Cliff’s, we could see a slight halt to those increases. Let me emphasize “slight”. There are still going to be people that want and need to buy real estate. It could be that most buyers think they have missed the real estate boat and that it has sailed without them. This is not the case when one looks at where interest rates were back in September 2011 and where they are today – in December 2012 – they are much lower with record numbers being set frequently (low numbers).
So, have you as a real estate buyer missed the bottom of the market? No you have not. Another thing that is being talked about, which I am in full agreement with, is the fact the “investor community” is drying up. Leaving real estate resale to the “owner occupied” crowd. This will be a breath of fresh air because they are mostly financed buyer prospects. Most of the investor community was Cash without the need or desire for appraisals. No appraisal equated to higher home prices – a temporary bubble. Leaving the purchase of any real estate out of an appraisers hands created these price increases we have seen as of late.
Although short lived, we have seen as a multitude of buyers have been “beat up” and “beaten out”. This is due to change in the coming months. The other issue we face, as we approach the end of the Holiday season, is the fact that real estate slows down. From all angles – from the banks populating the properties onto the real estate market via their bank owned (REO – real estate owned) inventory to the investor flips – all have slowed down for now.
Q1 is good for real estate buyers – and sellers know this. With the constrictive inventory – we are looking forward to more “fresh” inventory to hit the market during the first two weeks of January – which is typical in a “recovering” real estate market.
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