Sunday, November 20, 2005

Real Estate News for Sunday, November 20th, 2005

Investors like valley housing. But experts warn they'll dump their homes when prices decline. Here's a new name for the San Joaquin Valley: "Affordable California." That's what real estate economist Kenneth Rosen has started calling the valley, which attracts commuters and investors from California's high-priced coastal counties. "A significant number of homes — 20 to 40 percent of those sold (from Merced to Bakersfield) — are being purchased by investors," Rosen said. "We're worried too many people are buying houses for investment, not occupancy." He warned that if interest rates rise, the valley's house prices may decline and investors could dump their investment homes. Click here to read more.

Economic Risks Rising into 2006, Expert Says. Economic growth will most likely moderate in 2006, but an unexpected shock could trigger a sharp correction and significant decline in housing prices, according to an East Bay economist's closely watched annual projections. He said there is a 60 percent chance that rising interest rates and energy prices, combined with declining consumer confidence, will slow gross domestic product and job growth in 2006 to 3.1 percent and 1.3 percent, respectively. Housing prices in California and elsewhere will likely decline slightly, as home owners move to realize profits from the enormous run-up during the past few years. Click here to read more.

Normal a relative term in today's home-buying market. Normal market not seen in years. Home sales in the San Fernando Valley plunge an annual 16 percent in October and the median price of a used house soars 27 percent, right back into record territory. And market watchers conclude that things are getting back to normal. This market has not behaved in a normal fashion over the past 19 years, though. Click here to read more.

~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com

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