The real estate market in Southwest Riverside County and other Inland areas are seeing scarce home inventory and low interest rates…which translates to the formation of a seller’s market. As a result we are seeing sales prices escalate.
These market conditions are creating competition for the small number of affordable homes between first-time home buyers and foreign and domestic investors.
Paul Herrera, government affairs director for Inland Valleys Association of Realtors comments “People who own property are enjoying what’s happening with price points at the moment, but if you want to own a piece of property, you may be very frustrated right now.” Although the number rose, the pace is well below what’s needed to sustain a normal amount of home sales, Herrera said.
Bruce Norris, founder of The Norris Group, who early in the year predicted that price appreciation would be considerably more aggressive here — pegging price gains of 20 percent in the Inland area real estate market for 2013 — hasn’t altered his stance. “Whoever buys property one year from now will have a big smile on their face,” Norris said. It’s also become a seller’s market in the sense price has gone up from where it was, Norris added.
Last year, Zillow.com, the real estate information reporting service, said there were 1 million fewer homeowners who were underwater and no longer owed more on their mortgage than their home was worth. The percentage fell 1 percentage point to 27.5 percent, or 13.8 million people.
This year, another 1 million will be freed from their negative equity position, Zillow.com predicted.
Excerpts From: Press Enterprise March 12, 2013 Debra Gruszecki
Excerpts From: Press Enterprise March 14, 2013 Debra Gruszecki