Expert: Russel Ray - 4/8/2010

Question
QUESTION: Hello Russel,

How long do you think the residential real estate prices will stay low?

Thank you in advance,

Richard

ANSWER: Hey, Richard.

That's a loaded question if there ever was one. LOL

Depending on where you are, prices are well on their way up. For example, here in San Diego County sales have been up for 20 consecutive months year over year. Prices have been up or flat for 13 consecutive months year over year, except in January, when the median price fell by $5,000. The experts here are blaming that on the significant rainfall that we had this year in January. Note that February went up again, and I expect the same for March.

Many areas of the country, especially big cities that were hit hard by the market downtown, are now reporting similar sales and price gains.

Not knowing exactly what city yor state you are in, that's about the best I can do.

However, you could check out the many real estate professionals at ActiveRain (http://www.activerain.com), especially those in your city or state, and see what's going on there where you live.

Hope that helps.

Russel

---------- FOLLOW-UP ----------

QUESTION: Hi Russel

I'm currently stationed in Dallas, TX, but I'm interested in the Miami, FL market. What would happen to prices in the current year? Next year?

Thanks in advance,

Richard

Answer
Hey, Richard.

Miami seems to be improving for the last few months. However, in all areas, the experts (and I'm not sure we should trust these real estate and financial experts anymore) warn of an impending release of what they call "shadow inventory" to the real estate markets. Shadow inventory refers to bank-owned properties that have gone through foreclosure. Couple a release of shadow inventory with the number of short sales and foreclosures already on the market, and the fact that the federal home buyers tax credit expires at the end of this month, and prices could dip again.

Generally, if you're willing to buy a property, live in it, raise a family in it, retire in it, and perhaps even die in it, real estate is still an excellent investment. It's when the average person tries to use it as a cash machine for renovations, vacations, new cars and boats, etc., that problems arise.

Here is the ActiveRain link to real estate professionals in Miami: http://activerain.com/states/FL/cities/Miami

and

here is the link to Miami-Dade County: http://activerain.com/states/FL/counties/Miami-Dade%20County

Read through the blogs of the top people and you can get an excellent feel for what's going on in the Miami market at your leisure.

Hope that helps.

Russel