Stability in Home Prices
California is on the right track or so says veteran banking analyst Charles Peabody. Peabody suggested that the housing market could be near hitting bottom, which means that a national housing recovery is on its way. The reason he stated this is due to the fact that there has been a rebound in homes sales in which renters are now becoming homeowners.
Peabody stated, “The key is to try to get some stability in the price of homes, which appears to be happening in California.” he went on to say that California is of course a trend setting and the real estate market is no different.
Peabody believes that the bubble burst is close to its end in California, which is a ray of hope for real estate markets across the country.
In the recent report, Peabody stated, “Since California constitutes 25 percent of the housing stock in the U.S., any stabilization can have a profound impact on national averages,”
By extension, stabilization in home prices is required before any sustainable rally in financials can be expected,” Peabody said. “It is our belief that we are moving in that direction.”
If the rest of the country follows in California’s footsteps, the market will begin to see a healing point and start increasing.
Looking at market conditions the price for single family dwellings are down a bit from $478,711 in May of 2008 to $468,508 in June of 2008. On the other hand, sales are up in San Diego County from 1,010 in May of 08 to 1,031 in June of 08. Throughout the San Diego area, there have been ups and downs in the market condition such as average sales price has gone up in Carlsbad, Escondido, La Mesa, and Rancho Bernardo anywhere from $20,000 to $70,000 from May to June. Sales are also up not only in San Diego but also in Escondido, San Marcos, Rancho Bernardo, Spring Valley, and Vista.
With the market looking better in quite a few cities, we may just be nearing an end to the real estate crunch, which means more homebuyers on the horizon.