I am looking to buy a house in West Covina CA.Does any body thing the market will go back to the 1999 levels."house X" sold for 199000 in 11/1999 in 1-2007 sold for 569000now is 370000. Real Estate experts please help. where is the bottom?back to the low 200K?
I doubt it will get any where close. You may see $325,000
No one knows. If you are interested in buying a house, hire your own appraiser and have an appraisal done. I personally don't think house asking prices will continue to drop.
I seriously doubt that it will go below $300K to $325K. But, within the next 10 to 15 years, it should be back up to 2007 prices and beyond. That's just the way the real estate cycles work in California - and have since the end of World War II. If you plan on living in the house, or at least keeping it and renting it out, for at least 7 to 10 years, buy it now. It may go down in price a bit more. But, interest rates are extremely low right now and the place will look like a steal 10 years from now, regardless of whether it goes down more or not. Also consider that this is a buyer's market right now. Even though there's lots of inventory for sale, everyone is waiting for the bottom of the market to make their move. But, the only way to know that the market has hit bottom is after the fact, when prices start coming back up. When that happens, everybody will be clamoring to get back into the real estate market. You'll start to see bidding wars that will drive the prices up. Inventory will sell off fast - particularly the most desirable properties - and the perfect homes that may be available today will be gone or more expensive than they are now. If you find something you like now and can afford it, go for it and don't look back. And, then you can look forward to that several thousand dollar stimulus tax credit next April.
