What’s ahead in 2012 & beyond?
Posted in For Buyers, For Sellers, Market Trends and Projections | By Blair Newman and Dave Emerson |
(1/13/2012) by Blair Newman and Dave Emerson: As we begin the new year, it’s time to take a look back at what 2011 brought us in the world of SoCal Real Estate, and look forward to what we expect.
Then, most important, make our recommendations for those who may be thinking about selling or buying in Southern California this year or next:
2011 in review:
Prices on homes going into escrow in our area moved up modestly through the spring, then trended down through the summer but started heading back up in the fall, propelled by amazingly low mortgage interest rates.
What’s ahead in 2012 & beyond?
The experts speak: The OC Register just finished interviewing 21 experts on what’s ahead for So Cal real estate. Here’s a summary of what the experts think:
- So Cal housing will bottom sometime in the next six years..
- Condos and outlying areas will be the last to recover.
- The next housing peak is 5, 10, or up to 25 years away.
- In 2012 local home prices will rise modestly, stay level, or drop 5% or more.
- Local rents will rise in 2012, as we shift to a “rentership society.”
- Almost everyone agrees foreclosures will be up in 2012.
Bottom line: Nobody’s really sure what’s next, but we’re not out of the woods yet. The “silver lining” is mortgage interest rates staying near their lows.
Our take? Based on what we’re seeing first hand, we’re a bit more optimistic than most experts. Why?
- The 2011 ended with the strongest December we’ve seen in 20 years, with home prices actually moving up.
- Low mortgage rates continue to boost sales: We’re already seeing multiple offers!.
- 2012 is a presidential election year, meaning no effort will be spared in D.C. to improve the economy. (That means 2013 could be a “clean up the mess” debacle.)
Biggest concern? “An enormous wave” of foreclosures in 2012 is predicted by RealtyTrac, an Irvine data firm, anticipated.
Recomendations:
Sellers:
- Try to get your home on the market by March 13 – May 8. (If needed, we have ways you can sell early but postpone your move for months.)
- Staging your home correctly before it hits the market is critical. Talk to us now to save loads of time and money. No obligation, just the benefit of almost 40 years combined experience and over 800 closed sales! Blair: 562 822.6532; Dave: 562 822.SOLD. .
- f you are thinking about moving up, down, or out of the area, we’ll give you a realistic idea of your net and connect you with experienced agents anywhere in the world.
Buyers:
- We expect prices and interests rates both to rise as we move from January through May, so call or e-mail us now (BlairNewman@verizon.net).
- Your first step is to talk to an honest, knowledgeable lender! We know several.
- Now’s a great time to buy a rental property, and we’ve got more experience both owning and selling rentals as anyone!
That’s our perspective, from the OC/LA County line. What’s yours? Feel free to let us know how thinks are looking for 2012 real estate from your perspective.
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