September 27th, 2011 10:31 AM by Gregg Mower
The California Housing Market has leveled off with more bank owned homes to hit the market this fall. What this means to anyone looking purchase a home either for personal use or investment is that the market for fixed up homes for first time buyers will be the hottest of all. Demand remain low due uncertainty in the jobs market. People have to live somewhere so the single family rental market will also remain strong as most families would prefer to live in a home other than an apartment. The strongest segment of the market will be those homes priced in 100k-to 200k range as that is the "sweet spot" for income that people can qualify for a home (Central Valley). Those that have the income and not the credit will look to rent these homes as well, paying $800-$1,500 a month. Weakness in the Stock Market and Global fears of another recession dip will force investors to look closer to home to make their investments and real estate is the most logical of those investments. We are not seeing any further dips in Real Estate prices due to these phenomenon.
Please chime in and let me know your opinion.