Jeffrey Tung's San Francisco Bay Area Real Estate Blog

California home sales are looking at a 1% increase in 2012 and the sales price may also increase 1.7%.   Employment , low interest rates and an increase of affordable homes are going to fuel the sales activity and help get the recovery going.  “It will take as long as five years for the state’s inventory of foreclosed properties to be absorbed” according to  Leslie Appleton-Young, chief economist for the California Association of Realtors. 

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As we are getting into the last quarter of the year, San Francisco and the Bay Area have gone through a lot of changes.  They could be good or bad depending on how you look at it.  As I have mentioned on another post, what will the city be like in the next 5 years?  I believe it should be at a point of recovery.  We’ll see.

In many areas in the nation, there are areas that are cheaper to buy a home then to rent.  You now can find a home for $100,000 in New York and through out the country including Hawaii. 

It may seem like some areas have not been affected by the economy but that is not true.   The properties that sell really quickly are usually the cream of the neighborhood.   

The Bay Area has been hit as well but not as bad as other areas.  It will be a while before we get out of this mess.

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• Buying Is Cheaper Than Renting (troyrecord.com)

The economy has driven our home values down and there is no end in site.  Many areas in the nation has experienced major price reductions.  Not all areas have been hit but California has 6 areas that had the largest drop in value out of the top 10 areas nationwide.   The prices have decreased more then 60% from 5 years ago.  This situation will not get any better anytime soon due to the 1,000,000+ foreclosures that the banks are holding this year and another 1,000.000+ foreclosures in next 2 years.  It will take a few years to sell off all of the phantom inventory before any appreciation can be realized in these areas.    

Related articles

• Home Values: Where Have They Overcorrected (and Where Do They Have Further to Fall)?(pinkbananaworld.com)
• Short Sale Mindset(velindapeyton.com)
• Number of short sales on the rise(usatoday.com)
• Home Prices in U.S. Fell 5.9% in Second Quarter, FHFA Says(businessweek.com)
• Foreclosures of expensive homes take longer(usatoday.com)