California real estate values dropped a huge 59% from it’s peak May of 2007 to it’s bottom February 2009. Then the big money realized housing was priced below it’s long term fundamental levels. The institutional and foreign investors came in hard, pushing aside the traditional domestic buyers, and drove the prices up for the past couple years. Over the past few months the institutional buyers have pulled back from their heated buying frenzy.
The upside, domestic buyers have more inventory to choose from and can now purchase properties without the all cash investors driving up the price. Plus the interest rates are still at historic lows. The downside the underwriting of loans are tighter, and income has been stagnant, not keeping up with the surge in property values.
There are a lot of variables coming into 2015, but I expect the values should stay stable with a year end range of plus or minus 5%.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me.
Ron Henderson GRI, RECS, CIAS
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth