The Lava Lamp Effect

A recent survey done by Zillow asked homeowners nationwide how they feel about the dropping prices over the last several quarters. The survey found that 74% of homeowners believe that their home will not decline in value in the coming six months, effectively calling a bottom on their own home's housing slide.

What we are seeing in Covina and surrounding areas is a reflection of that statistic. In the first-time buyer price ranges, sellers are receiving multiple offers on properties, both repos and standard sales. in other words, the competition among buyers is high for properties that are priced competitively and show well.

This is a result of lower interest rates and lower prices. Buyers that were on the outside looking in before, are now able to qualify. The new increased FHA loan limits have made buying a possibility for those who could not qualify otherwise.

One thing to remember, the rise and fall of values is like a lava lamp. When the heat is on, the bubble is rising. When the heat is off, it falls. But just when the heat turns back on, no one knows. The same for home values. By the time you've seen the bottom, prices are already going up. Now is your time to make a move! you know who to call, don't you?

Mark Andersen & Lauren Andersen-Ibarra