Asian Journal- The Filipino-American Community Newspaper

AS HOME sales increase due to pent up buyer demand in California, there has been decrease in number of properties available. This might be apparent that the bottom of the market might have hit about six months ago. Housing Predictor projects the California housing market to be in a recovery by late summer. Now, there are still areas that are depressed and still might see another 3-6% decrease in values.

It will take years for the Golden State to recover fully. Despite the credit crunch, an ailing economy, increasing foreclosures and growing unemployment California will join Florida in coming out of the housing mess. The growing volume of home sales is aiding the state’s recovery. A special $10,000 state tax credit for home buyers, $8,000 federal tax credit and the lowest mortgage interest rates on record are getting home buyers off the fence. MCC ( Mortgage Credit Certificate) is another source of tax credit that buyers can apply for if they qualify to get more tax credits and some city assistance program. Another one would be NACA a non profit organization that helps homebuyers and homewoners needing some government assistance.

More than anywhere else in the country, California has been through major ups and downs in housing prices. Every time it happens more people move out of the state than move into California. But that means little to true Californians, who keep their residences in the state known for being the leader in dozens of industries. After all, it is the Golden State, the home of Hollywood and the best weather in the nation.

As the recessionary economy worsens in Los Angeles, home prices are falling at some of the fastest rates in the country. Record high foreclosures are hurting, but have triggered an increase in home sales. Mortgage companies and banks are slashing prices in order to unload inventory before the second round of foreclosures hits. Greater Los Angeles area home values are forecast to deflate an average of 20.1% in 2009.

2009 Market Watch

   City Forecast

•    Los Angeles     −  20.1%
•    Riverside    −  21.2%
•    Inland Empire    −  21.2%
•    Anaheim    −  19.3%
•    San Diego    −  17.3%
•    San Jose     −  19.2%
•    San Francisco    −  17.6%
•    Oakland    −  18.2%
•    Orange County    −  19.3%
•    Fresno    −  23.1%
•    Bakersfield    −  19.3%
•    Tulare    −  19.8%
•    Sacramento    −  15.7%
•    Stockton    −  26.4%