ccording to the February credit rating because of it. Many
19, 2007, issue of of these investors of homes for
BusinessWeek, the homes for sale used the “no money down”
sale market has not crashed and and/or “get rich quick” financing
is forecasting normal inventory schemes. For these unfortunate
levels for homes for sale by investors, that is the risk they
midyear. took by investing in residential
real estate. There also are some
We have gone through quite a lot current sellers, however, who
of up and down forecasts over the must sell their homes for reasons
past few years. For several other than the deflating market.
years, forecasters were They may be forced to take a lot
predicting the burst of the real less money for their homes for
estate market bubble, as it sale than they originally
continued to grow by leaps and planned. They are the real
bounds. They said it would burst victims of the market bubble, but
and insinuated that every real it is getting better — much
estate investor, as well as sooner than anyone expected.
buyers and sellers of homes for
sale would lose their shirts. Currently, many existing San
Diego homes for sale are priced
While prices have deflated in about the same as last year at
most areas in the past couple of this time, which were at 2003
years, thee was never the doom price levels. Construction has
and gloom “burst”. There are many fallen sharply with builders
investors of residential homes trying to sell their current
for sale, who now find themselves homes for sale inventories before
in foreclosure, will probably building more. BusinessWeek’s
lose a lot of money, and will Peter Coy, however, is predicting
suffer a less-than-favorable that the homes for sale
inventories may be back to normal remain affordable, according to
levels by midyear. He based his the National Association of
projections on the continued low Realtors. Even with the rising
interest rates for homes for sale prices during the bubble of more
and income growth. than 50 percent in the past five
years, the association shows an
Current fixed-rate, 30-year affordability index for homes for
mortgages have interest rates no sale of over 100. That means that
higher than in June 2004. They income growth has kept up with
averaged 6.2 percent during the rising prices, allowing a median
last quarter of 2006, which is income family to be able to
well below the average ten years afford a median-priced homes for
ago. sale.
Homes for sale in most areas
About the Author:
John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit San Diego Homes for Sale
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J Harris
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