Real Estate News for Tuesday, October 18th, 2005

According to the Marin Independent Journal, the real estate boom is slowing. Since early September, only 32 to 37 percent of Marin home listings have been in escrow each week, according to the Multiple Listing Service, indicating what agents and industry analysts call a neutral market. When more than 40 percent of homes are under contract, it is considered a sellers' market. Below 25 percent is a buyers' market.
"This is the first time in eight years there are fewer than 35 percent in contract. It's a neutral market," says Patti Cohn, a real estate broker with Frank Howard Allen Realtors in Novato. Click here for more details.

Nearby, the Bay Area real estate market seems to have settled into a steady state, with few indicators pointing to any upcoming change. Supply and demand seem stable. Keep an eye on rising mortgage interest rates which could slow things down somewhat before the end of the year. For more details, click here.

According to a short article in the Desert Sun, many new investors got into the market after watching their stock portfolios stall as their home equity soared. These days, they're turning to friends, seminars and investment clubs for advice on buying property for long-term rental income or "flipping" homes for profit through quick sales. For more information on that, click here.

However, according to the San Diego Union-Tribune, industry experts don't expect prices in San Diego county to sag. Not everyone agrees that prices are going to drop steeply, or even that the housing boom is ending. Citing a shortage of dwellings, industry representatives continue to dismiss the notion of a bursting real estate price bubble. Bob Cummings, president of K. Hovnanian Homes San Diego, says the slowdown is seasonal and in keeping with historical trends before the recent spike in prices. "I fully expect things to pick up the first part of the year," he said. "People are reading too much into the San Diego slowdown." Although the pace of sales has slowed, there are no clear indications that overall prices are going to decline, real estate analysts say.

Newly released data by locally-based DataQuick supports that view. Click here to read the entire article.

~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
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tina.jan@coldwellbanker.com
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