Of the 691 readers who participated in our recent poll, a close 53% (369 voters) believe California real estate market has finally reached its bottom in pricing.
The other 322 voters were less optimistic. Home prices, while low compared to the unprecedented highs seen in the Millennium Boom, have yet to dip below their historical average (the equilibrium trendline) and gain the momentum needed to propel the housing industry out of recovery mode. Jobs are another significant influence on home prices – as buyers can only purchase if they have steady income to qualify – and about 950,000 jobs have yet to be regained before California employment returns to pre-recession levels.
It is unlikely home prices will see a steady increase until 2016. The intervening years will be more of the same: little hops and dips on this bumpy plateau recovery road.
To cast your vote and read more about the housing recovery, see the July 2012 first tuesday article, The housing recovery is now!…okay, now!…no, now!
To weigh in on other recent real estate topics, click here!