Today’s release of the Standard & Poor’s / Case-Shiller Home Price Index showed that home prices declined for the fourth consecutive month nationally. For December, prices dropped in 18 of the 20 metro areas surveyed by the index.
As I stated last month, what does this mean if you are a buyer? With home prices off 34% from their highs and mortgage rates at record low levels, on a national level this is a phenomenal buyer’s market.
And if you are seller? First understand that 73% of the transaction reported were for houses below $250,000 where foreclosures and short sales are pressuring the market. Also, If you are local to the San Marino and Pasadena area, you can take solace in that our property values have held up much better than a lot of the rest of the country. Our area is now one of the most sought after by foreign, in particular Asian, buyers looking to relocate to the United States. Often cash buyers, this helps mitigate the biggest hurdle in today’s market which is the difficulty some buyers are still having getting mortgages. Make sure that your Realtor and sales strategy are lined up to take advantage of this demographic trend.