Real Estate to Increase in Value Soon
by Gary C. Furstenfeld - November, 2008
Real Estate Values in and Southern California, San Diego County and beyond, will be going up ... WHY?
1. There is a 90 Day Moratorium on foreclosures in the State of California and
this type of law has spread throughout many other states. When the 90 days has expired, it will most likely be extended for many more months.
2. On at least three occasions over the past two weeks, many people in power (California Governor; Arnold Schwarzenegger, former Chairman of the Council of Economic Advisors under Presidents Bush; R. Glenn Hubbard and
Michael Krimminger of the Federal Deposit Insurance Corporation) have all stated:
"The goal is to keep people in their houses"
3. Foreclosures are already down 50% for the month of September, 2008 for California.
4. These actions and new policies will substantially eliminate Short Sale Properties and Bank Owned Foreclosures (REOs) In the near future.
5. There are 23,000 properties on the market in San Diego County listed on the MLS (Multiple Listing Service) where 14,000 Short Sales and Bank REOs account for
60% of that volume, the remaining inventory will be 9,000 properties. With the same number of buyers and the inventory shrinking dramatically, the same buyers will be chasing fewer properties marking the return of multiple offers on the same property;
Greater Demand + (Less Supply) = Higher Prices |