Les Christie, at CNNMoney.com wrote an interesting article, “Most over- and under-valued housing markets” discussing why investors are returning to the real estate market, “Home price declines have sent affordability soaring. Prices have fallen so far that the average U.S. home is now undervalued by 12.2%…” Christie provides an overview of the HIS Global Insight Study, House Prices in America, which reports that “the bursting of the housing bubble in once over-valued areas in California and Florida was severe, with prices falling more than 50% from their peaks.” The good news for California as Christie points out is, “Inventory of homes priced under $500,000 [have] shrunk to a three-month supply at current rates of sale.”
This, darling readers, mean California is ripe for first time homebuyers and real estate investors.
The OC Register with info from Trulia.com, reports, “an average of 30% of homes for sale in Orange County see at least one price cut.” If you’re not sure the home you have your eye on is one of the three in ten that will see a price cut or you’re tired of playing the waiting game, go for a short sale. Most of these homes are sold “as is” and the home’s price is unlikely to change once it enters a short sale. There are short sales a-plenty for your perusal over at SHORTsense.com.
Minda Reves is a free-lance blogger for SHORTsense.com