Looking Ahead to the Housing Crisis End

Looking into next year one of the most widespread and hot topics will be the start of the housing market come back. For most of this and last year we've all been hearing about the crisis in the mortgage and home sales markets. Especially in states like California, Nevada, and Florida that were hit the hardest by declining prices and foreclosures. To go even further these events have been directly linked to the decline and weakening of the economy and the US dollar. Where it all began and the ripple affect it may have caused is a heated debate topic but according to a recent report released by the CAR (California Association of Realtors) that may be about to change.

Most experts in the finance, economic, and real estate fields have, for the most part stated two things. One, is that this is an event the like of which have never been seen before. Two, is that the recent mortgage meltdown is part of a cycle that will have a definite end. The only question has been when. According to CAR the median home price continued to decline by -32% through April however, unit sales in the state of California rose by 2.5% over the year. This marked the end of a 30 month string of year-to-year declines that began in October 2005.

In my own discussions with other real estate agents and loan officers in Los Angeles County this holds some truth. Mortgage associates and other local agents have been running into a slow change from a market full of homes not selling and sitting for months to homes having received multiple offers to purchase. Some homes have even sold for above what they were listed for. What does CAR have to say about this? They are reporting a 3.3% increase in unit sales in LA County over the year.

What does all this mean? With the rise in prices of just about everything everywhere now may be the time to look into the future of home prices. What this means for the economy overall only time will tell. As far as real estate markets go this could mean the return of a home as an investment and a life choice instead of a financial risk. Imagine if years ago you could've known that without a doubt gas was going be over $4 dollars a gallon. Some experts are predicting a turn around of the housing market by 2010. Investors and bargain hunters have already begun to take the hint especially in the hot REO/foreclosure market in San Bernardino County where sales this year have jumped by a whopping 32%.