Not much has changed in the last few months. Credit is tight. Many loan products have disappeared pushing would be buyers out of the market all together. Thus, putting continued pressure on home prices. Unemployment is up also putting pressure on home prices through forced sales and increased inventory. It will take time to work through the existing inventory, the mortgage resets, and get to a place where the market is at least stable. Once that happens the old appreciation triggers of increasing employment, population and income will begin to put upward pressure on home prices and we will then have a bottom. Until then, watch the inventory numbers because pressure on price will NOT abate until inventory comes down.

On the commercial side, financing continues to be an obstacle to deal making as does the short term economic outlook. Look for further deterioration in occupied space especially in Riverside County and areas east of Riverside.

Previous real estate updates can be found here.

This entry was posted on Wednesday, August 27th, 2008 at 8:28 pm and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.