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California home price predictions are always a hot topic as we close in on the new year. Last week I asked you about your predictions for California home prices and home values in 2012 in our reader poll.
The results are in and I have to be honest, I’m not surprised. You have a pretty good handle on what’s going on in the market.
We did a similar poll for home price predictions for 2011 and the results were similar in regards to the majority opinion that home values would decrease. As you can see, expectations for declining home prices/values were quite a bit higher last year.
Home Values Dropped in 2011 – Home Buyers Win
The most recent numbers from DataQuick, the foremost authority on real estate data and reporting, show that home prices did indeed drop Statewide but were mixed by region.
As you can see, home prices/values dropped almost 5% Statewide in 2011 compared to 2010. Falling home prices resulted significant increases in home sales in both Los Angeles and Ventura counties which resulted in a net increase in home sales of .5% in Southern California.
We saw similar trends in the Bay Area of Northern California with significantly increased sales volume as a result of declining home prices almost doubling that of Southern California.
What can Home Buyers expect in 2012?
I personally think we will see similar numbers in 2012 as we saw in 2011. I am inclined to be believe that home prices will continue to drop through 2013 in many regions of California resulting in many regions experiencing an increase in home sales due to an increase of foreclosures and distressed properties as California’s vast shadow inventory works it’s way out.
Home buyers are still in the unique position of being able to take advantage of low interest rates and low prices. This is a unique market for home buyers in 2012 as the Government continues to artificially keep interest rates low and efforts to provide relief to underwater homeowners remain minimally effective.
Home buyers should keep in mind that this is NOT a normal market! The conditions we are seeing today greatly benefit home buyers that can are will enter this market.
What can Home Owners expect in 2012?
Unfortunately, as I stated above, I agree with our readers that home values will continue to struggle in many regions of California.
Many of the Government programs intended to help upside down or struggling home owners have not really produced the results that many expected.
FHA streamlines continue to be a great option for those home owners that have FHA financing on their home currently.
The new HARP 2.0 program looks extremely promising for home owners whose home loans are owned by Fannie Mae or Freddie Mac.
Details are still being released on the HARP 2.0 program. I will keep you updated as we find out more.
If you have comments or questions about home value or home prices in 2012, leave a comment below or feel free to chat live online with a loan specialist now.
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