Further Predictions For California Real Estate in 2010

Low and high end homes The gap connecting low-end and high-end California housing will turn out to be even more pronounced, according to Liptak. Real estate obviously falls beneath the latter, with its middle home price of over $1 million. This means it will draw more investor and seasoned buyer rather than first-time homeowners. Sellers will carry on struggling as buyers face tight financing standard. Buyers have also turned out to be more wary of where prices may go, so many might decide to stay it out for another year or two.

More distraught sales Distraught homes will financial credit for almost one out of three sales in 2010. CAR vice-president and chief economist Leslie Appleton-Young says this make the predictable catalog quite lean, with a six-month supply during the off-season and a four-month supply during the hit the highest point. Real estate is particularly known for its high share of distressed properties, which have caused rag price drops of over 40%.

Economic pressures Various economic forces will have an brunt on the California and Newport Beach real estate markets in 2010. These include an approaching wave of foreclosures, loan modification and reset, the job market, and California’s present budget crisis. Foreclosures may be chiefly high in expensive areas like Newport Beach, as a rising “shadow inventory” that accumulate in 2009 starts coming to the fore.