[quote=sdrealtor]CAR
I was surprised also by the volume decline and yes it is the 1st five months. I dont expect higher volume and think that it will stay pretty close to where it was last year. I’d like to think prices will drop also but i think prices in the 1st 5 months of this year spiked down faster than the trend should have because of the economic panic in the air and WS crash. Prices have recovered a bit so year over year could go either way at this point.[/quote]
So, maybe my “spring prediction” was right so far? 😉 Still, though we can find certain high-end properties with 30-45% declines, I’ll concede that the overall averages are not down that much…yet.
Submitted by CA renter on November 18, 2008 – 12:00am.
Agree that this spring will probably see pretty brisk sales…but we’ll see slower activity than 2008 (which was very high activity).
Also thinking we’ll see major price drops in the more desirable neighborhoods by Q3 2009, for an average of around 30-45% off peak in 92024 and 92009 (that’s for you sdrealtor!). 😉
I think 2008 saw the dead-cat bounce in sales which resulted in stickier prices in the upper-mid to high end properties.
After an initial period of elation in the first two quarters of 2009, activity will drop like a rock around August of next year due to macroeconomic trends (massive deflation and unemployment hitting 10%+ in California). This will also be the time that all those “re-worked” mortgages run into trouble again, and we finally see the wall of foreclosures that the govt has been trying to artificially hold back.
