The buzz at the still open Starbucks around Lee County is that the real estate market is on its way back. Customers are buying and banks are even approving a few short sales
these days. Yes, it is clear to everyone that pricing adjustments are fueling this market pulse.
The question on every buyers mind is, "are prices going to drop some more, is this a good time to buy?" I wish I could gaze into the giant crystal ball and answer that one for you, but unfortunately I lost my crystal ball on a vacant half-acre in Lehigh.
This weeks report on Loan Performance Home Price Index released by First American CoreLogic quantifies the obvious and reveals that we experienced the third largest decline price decline in the country over the last year.
12-Month Change by Top CBSAs 12 Mo.
Core Based Statistical Areas) as of April 2008 Change
Riverside-San Bernardino-Ontario CA -24.59%
Los Angeles-Long Beach-Glendale CA -23.75%
Cape Coral-Fort Myers FL -22.87%
Oakland-Fremont-Hayward CA -22.29%
Las Vegas-Paradise NV -21.01%
San Diego-Carlsbad-San Marcos CA -20.54%
Fort Lauderdale-Pompano Bch-Deerfield Bch FL -19.70%
Phoenix-Mesa-Scottsdale AZ -19.26%
Miami-Miami Beach-Kendall FL -18.82%
Orlando-Kissimmee FL -17.71%
Source: First American CoreLogic, LoanPerformance HPI,
Single Family Detached Series as of April 2008
If you are a homeowner that purchased in the 2003-20006 timeframe, this is a tough statistic to stomach. Very differnet story for someone entering the market now, we are the land of opportunity. Many years ago, a wise old sage investor told me "in real estate, you make your profit when you buy, not when you sell." This is very good advice for anyone currently in the market.
First American CoreLogic Releases April 2008 LoanPerformance House Price Index [Market Watch]