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5 General Trends in the California Real Estate Market to Watch 2006
Bank Of America Investment And whether you are a first time homebuyer, debating the viability of building your dream house in San Bernardino, or a real estate investor looking to sell condominium units in Los Angeles, you certainly want to know: When is it the optimum time to buy or sell?
Bruce Norris is an active investor, hard money lender, and real estate educator extraordinaire with over 25 years experience. Bruce has been involved in over 2, 000 real estate transactions as a buyer, seller and money partner. Renowned for his ability to forecast real estate market trends and timing, the release of The California Comeback in 1997 gained him much notoriety and its accuracy of the extensive report led many California investors to financial freedom. His latest release, depth look into the coming California market correction and the statistics behind Bruce's predictions.
Investment Opportunity Purchasing a house is a major investment. With judicious planning, this valuable asset will appreciate with each year.
The study findings also highlight the resiliency of the luxury market real estate buyer. Only one in seven respondents indicated that recent trends in the real estate market have caused them to be more cautious about purchasing a second home (14%), demonstrating the majority of affluent households are not significantly concerned with current real estate market trends.
Banc Of America Investment But how do you get the big picture? Fortunately, real estate trends are predictable because these develop over a long period, unlike the stock market, which is rather volatile.
Our dedicated real estate investment site strives to uncover all the strategies employed in real estate investment, such as buying, Real estate investment Visit often to get important real estate investment information and no money down innovative real estate financing techniques. You'll find various inspired ways to invest in real estate, economical cash flows, and mobile homes.
Banking Investment The first thing you will need to do is to read and track real estate articles: the market reports of the California Association of Realtors or the California Building Industry Association, and the briefs created by housing analyst companies.
Copyright 2006 David Schneider It's true, You can make a lot of money by investing in real estate. Yet, many investors are not. And when you look at their real estate investment strategy, it's no surprise. The problem is that they have been brainwashed by the so called real estate investment gurus. You know the ones that I am talking about. cut secrets to successfully making millions.
Investment Solution Strategic Once you have identified the following key indicators you will have a better grasp of the general trends in California's real estate market.
Click any state below to search Map of the United States With the volatile stock market, many investors are turning to the real estate market as a successful investment alternative. Purchasing a distressed property, which you can often find for 30 to 50 percent below market value, is a great way to build wealth in real estate. Even if you've never thought about purchasing foreclosures before, or have been capitalizing on them for years, Foreclosure.com offers everything you need to profit from real estate investing.
Investment Banking Services THE FIVE KEY INDICATORS TO WATCH
Bank Investment Interest Rates
When interest rates rise, buyers shy away. Conversely, lowered interest rates attract more buyers.
Alternative Investment This year, interest rates in California are on an upswing. For example, thirty-year fixed mortgage rates, which averaged 5.71 percent in 2005, has risen to 6 percent levels in January 2006. And adjustable mortgage interest rates have moved up to 5 percent levels compared to 4.12 percent in 2005.
Online Investment Services Building Permits
The higher the number of building permits issued, the higher the demand for houses.
Accompany Essential Investment Figures show that number of building permits issued for the year 2006, have fallen by 10 percent in comparison to last year's figures. In terms of houses, that's a decrease of 1,430 building permits compared to January 2005 figures, according to California Building Industry Association report.
Investment Company Home Sales
This key indicator refers to the total number of homes sold. In the law of supply and demand, when there are few buyers, real estate prices fall.
Investment Management Solution The January 2006 figures of the California Association of Realtors reveal that the number of existing single-family detached homes sold, has gone down by 24.1 percent in comparison to sales for the entire year 2005.
Investment Management Services Another factor to consider is the growing inventory of available houses in certain counties in California, which is changing the market dynamics. What was once a sellers market is slowly turning into a buyers market.
Guide Investment Stock Loan Defaults
This refers to the failure of homeowners to pay their monthly mortgage fees. One downside to this is that many Californian homeowners are choosing to have a bad credit report, rather than to keep paying fees for a home whose value has been inflated by as much as 20 percent more.
Investment Manual Solution Foreclosure Sales
Figures presented by DataQuick Information Systems, a housing analyst company, indicate that foreclosure activities in California have gone up by 19 percent in the last quarter of 2005. This is an increase of 3 percent compared to the third quarter of 2005, and is 4.6 percent higher when compared to 2004's last quarter figures.
Investment Stock When foreclosure sales are on an upswing, consumer spending is down and consumer debt levels have risen. In the real estate market, this has meant that many financially strapped homeowners are selling their homes at lower prices. The other contributable factors are inflation, the rising prices of gasoline, federal budget deficit, and interest rates.
Essential Investment Solution Concurrently, these key indicators confirm that although home sales levels in California are falling, the demand for houses remains strong and steady. Always do your due diligence before undertaking a purchase of property in California.
Citicorp Investment Services Article was prepared by John Nazareno at http://www.stateof-california.com
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