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Home Prices in Southern California

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One question on many Californian's minds who are looking to buy a home: when will home prices stop rocketing upward? Some experts say not for two years, at least. Obviously, shifts and changes in the economy would affect home prices but there is no break in the upward trend on the horizon.

While "housing bubble" may be coming up in speculation and conversation, the numbers firmly show that we are not in a bubble. Last year, only 4.8% of homes in California had a second mortgage compared to 43% in 2006. And again compared to 2006, down payments last year were on average just under 7% higher than they were. These statistics go to show that there are not as many people over-leveraging their homes.

While home prices are still on the rise, it is not too late to get in! Economists see this trend continuing for at least two years so if you can get in now, you will benefit as homeowner riding the trend of upward movement. Interest rates are still low and a better way to look at prices is that they are lower now than they will be in a year. For more details, check out How high can Southern California home prices go?

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