Wednesday, September 14, 2011

High Desert homes at 12 year low

This is the most amazing part.
The average home price in the High Desert dropped for the second straight month, hitting the lowest since 1999 for the month of August.
Local home prices last month declined 0.6 percent from July to the average of $60.03 per square foot, according to data compiled by Larry Trombley of Century 21 Rose Realty in Hesperia. That’s 10.2 percent lower than the same month last year.
Let's 1,800 square feet times $60 is...$108,000 and this was an investor driven market, because....
“It seems like there are a lot of people who’d like to buy homes but just don’t qualify,” Trombley said. “I hear that from lenders, too.”
People who lost their homes to foreclosures generally wouldn’t qualify to buy another house for two or three years depending on their loans, Trombley said. They haven’t come back into the market yet
Most of the foreclosed home owners were sub prime borrowers that will not qualify for new loans.  Some of these people will be renters.

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