Is it a Bubble, or isn't it?
The California real estate
bubble, that's the
word these days; therefore, never has a good real estate agent been
more important for buying or selling your first, or last, home.
We specialize in the Los Angeles real estate market, but we can
help find real estate
agents throughout not only Los Angeles and Southern California,
but the entire U.S..
Let's face it,
when it comes to
bubble talk, few markets receive more attention than the Southern
California Real Estate bubble, but is this founded?
Even as interest
rates are going up and the supply of Southern California homes
grows, prices are still going up. Nonetheless, many real estate
experts believe that prices are stabilizing and that the days of
double digit appreciation are almost over. Eventually,
as more and more homes it the market as fewer and fewer sellers
are in the real estate market, price depreciation seems
inevitable - at least in some areas. Consequently,
the real question becomes, 'when will this price depreciation
occur?' Will
it be six months, eighteen months? Will a sudden drop in
interest rates force one last hurrah? Will rising interest rates
negate any drop in real estate prices? The
truth is, no one really knows what is going to happen. However,
buying a home for purely investment purposes probably is a
dangerous proposition in today's market. Buying a home to live
in, however, is almost always a good idea if you can live there
for at least five to ten years.
Nonetheless,
if you are in the market for a new home, don't expect a big drop
in home prices any time soon.
More on the California
Real Estate Bubble.
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