I’m often asked, “Has the market hit a bottom here in Riverside County” to which I calmly reply “ No one really knows…” I’m also repeatedly told by “on-the-fence” buyers “I’m going to continue to wait to buy a home because prices are going to continue to drop and homes are going to be dirt cheap!” Now these are both two very interesting things that I consistently hear and I wanted to address them and see what others thought.
The BOTTOM: What technically-speaking is “the bottom?” The reason I ask this is because I think most people believe that you hit the lowest possible point for prices and then they will shoot straight back up. Similar to a “V-shape”. However, I don’t think that is what we will be seeing I think we are seeing a leveling-off with price drops. The reason I say this is because for there to be more steep drops you have to take into consideration supply and demand. For prices to drop, supply has to increase and demand stay constant or supply needs to stay constant and demand needs to drop. Here in the Inland Empire, namely Riverside County that isn’t the case. If you missed my Inland Empire Homes Sale Report- July click here, there is still a sizeable amount of supply out there on the market, but demand has shot through the roof. 300+ homes sales in Moreno Valley, 300+ in Corona, and 300+ in Riverside. Not to mention that as of August 1st, there were over 500+ pending transactions in each of these cities.
(---- A great Eastvale home that sold in the month of July
My question is how can we have a drastic drop in home prices here in Riverside County if demand is increasing? Here is a story from CNBC.Com that was posted today Click Here For the Story. A 12 percent jump over last year? Do you see a trend building here? Yes prices have dropped, but the question becomes was 900 sq. ft. home with a 3,000 sq ft. lot in Riverside really worth $400,000? Markets correct and tend to over-correct when they do so, so we might see a few slight drops here and there, but 4,000 sq. ft. homes for $200,000 in Corona won’t be happening! The best advice I can give is, if you’re interested in buying a home, do so now because when you notice it’s the “BOTTOM” it’ll already be too late. And you would have missed out on some great opportunities.
Here are just a few of them:
