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%

Foreclosures have been selling in Riverside, Ontario and San Bernardino, also known as the Inland Empire and as one of the hardest hit foreclosure capitals of the nation. The disastrous epidemic has battered neighborhoods and left foreclosed homes vacant. The Inland Empire is forecast to deflate an average of 21.2% in 2009. But Riverside and San Bernadino counties for year 2009 first quarter sold 100% more homes compared to the first quarter of 2008, what does that tell you?

In San Diego home sales have also picked up due to lower prices. The erosion in housing values is projected to remain high in 2009 and is forecast to deflate 17.3% on average for the year.

The collapse of the housing market took longer in San Jose in the San Francisco Bay area than many other places in the state. But as San Jose and neighboring Santa Clara home prices deflate the market will make inroads towards stabilization. San Jose is forecast to deflate 19.2% on average in 2009.

In San Francisco home values are deflating at a more rapid rate than they had been, and are projected to worsen over the coming year. Deflation in home and condo prices is forecast to hit an average of 17.6% in 2009. The City by The Bay is feeling the pain of the credit crisis, but has the economic strength to handle the housing downturn much better than many other areas of the country.

In the East Bay in Oakland, subprime and Alt A mortgage foreclosures have been at one of the highest rates in the state. The market has seen an up tick in sales, but is projected to remain slow through 2009 on average housing deflation forecast at 18.2%.

But up in the state’s capitol of Sacramento, which has been one of the states harshest hit areas, the increase in foreclosure sales is also helping to boost the ailing home market. The crisis is forecast to deflate home values in Sacramento another 15.7% by year’s end.

This has to be seen as a cup half full, great fortune and innovative breakthroughs are made during tough times. Investors will be presented with the greatest investment opportunity of our generations.

For those that had made mistakes, learn from them and come back stronger. We all make mistakes and learn from them.

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Call Ken Go of 1st Innovative Finance Group to give you a quote, call (888) 822-5363 or write to: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

( www.asianjournal.com )

( Published on May 27, 2009 in Asian Journal Los Angeles p. B3 )