[quote=sdrealtor]”The BIGGEST driver of prices is supply and demand. Well the big news today is another record high supply.”
Thats national not local news. I have the news on in the background and just heard a statement that sales are up over 40% year over year this month (admittedly it is mostly low end bargain hunters). Inventory in the MLS is down from last year. Not saying prices are going up but supply/demand certainly is not on your side right now. I have about a dozen buyers, all well qualified, with substantial down payments ( afew are all cash) looking for decent proeprties at or just below today’s prices. It has been a HUGE challenge to find what they are looking for. When we do, there is competition.[/quote]
sdrealtor, your numerous powerful, rich, all cash buyers may be a nice exaggerated anomaly, and you should enjoy the fat commissions you will make when you find them the right homes, but I can assure you that the supply/demand certainly IS in my favor.
“As the article says.. Additional waves of foreclosures are likely, because thousands of alternative-documentation loans and other exotic mortgages are scheduled to reset to higher monthly payments in the coming months, he said. In addition, sales haven’t increased enough yet to substantially reduce the high inventory across the state.”
While the summer rally comes to and end, an additional wave of inventory will be presenting itself to us in the coming quarters. Rents (in Temecula) are falling in some places. In Temecula, nicely located apartments are offering rates about 25% off of past prices and are giving 2 months free. This will eventually make its way into home rental prices as well as renters default and spend their money of food and other necessities. Soon, investors will see that these prices aren’t that great and they will find more profitable investments.
Inventory may have dropped this summer, but is this a surprise? No, what do you expect when prices fall 40%.
