Now that the holidays have come and gone, we can turn our attention to the new year. There's no doubt that, in 2008, we experienced challenges and turmoil that most of us didn't expect to ever see in our lifetime. And, if your eyes are glued to the news, prospects of a recovery in the upcoming months seem dim.
I SAY BULL!
Believe it or not, last year's real estate activity in Long Beach, CA and the surrounding area was very encouraging. Through the course of the past 12 months we saw demand, which is measured by the number of pending sales related to the number of active listings, rise 59%. We also experienced a 25% drop in the number of listings on the market. Most importantly sales increased 10.4% over 2007 numbers. And in the fourth quarter of 2008, sales were approaching 2006 levels -- a perfect opportunity for both buyers and sellers.
In my experience, increased demand coupled with decreased supply suggests that price depreciation that we hear so much about will moderate and stablize...then moderately appreciate in the near future. Coupled with once-in-a-lifetime interest rates of 4.5% to 5% range, a rebound is right around the corner.
Call me an optimist, but I'm going to be bullish on 2009.
Labels: CA, Forecast, Long Beach, Real Estate
# posted by
Dave Harbison @ 4:53 PM
