South Bay Home Prices
As South Bay home prices continue to rise sooner or later people begin to wonder whether we’ve crossed the threshold dividing undervalued from overvalued. Pundit shorthand for “overvalued” has gradually become almost synonymous with the far more fear-inducing term, “Bubble.” As with the chewing gum and soap-blowing varieties, the term can’t help but conjure up visions of the associated “Pop!”
Just worrying that we are in a home pricing bubble can cause sleepless nights and worse — financial paralysis. As South Bay home prices move higher, it’s natural to wonder if they are truly justified by economic fundamentals. While no one wants to be on the other side of wrong, no one wants to miss great deals on South Bay home prices, either. How to know?
Is There a Bubble for South Bay Home Prices
Bubbles are notoriously hard to define, but to address the issue, the Trulia real estate web site has just come out with a new tool designed to assess whether today’s South Bay home prices are overvalued or undervalued. They compare the latest prices with historical incomes, prices, and rents.
The first findings are reassuring. Although residential price gain percentages do rival those of the last decade’s bubble, that’s deceptive. They started from a much higher perch. The decline from 2005-2006 was steep enough that (aside from a few metro areas in California and Texas), the fundamentals show that the current gains look a lot more like a rebound than a bubble.
Use Tools Like Trulia for South Bay Home Prices
Trulia found that as of May, national home prices remain undervalued by 7%. During last decade’s bubble, prices went as high as 39% overvalued. Their takeaway is that South Bay home prices remain considerably lower than they were during the last bubble.
So bubble-watchers can rejoice or rebel, but as far as this South Bay agent is concerned – Trulia has provided some very pleasant news. “Rebounds” bring about visions of happy kids on trampolines (and rebounds don’t pop). The news is excellent for instilling a positive national outlook, but more locally, if you’re looking for the latest information about South Bay home prices and activity, contact me for a no-cost, no-obligation consultation.
Charles Fitzgerald Butler is a Real Estate Professional in Carson, Ca, specializing in First Time Home Buyer Programs, Distressed Sales, REO Residential and Commercial properties. Charles helps homeowners develop a second income stream so they can save their homes from foreclosure.
Charles Fitzgerald Butler can be reached at 310-684-2505 or www.CFButler.com. Prudential California Realty – The Mulhearn Group is an independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.
If you enjoyed this content please “comment, like, & share” this page…
Charles Fitzgerald Butler
Facebook:Butler Real Estate Group, Inc
If you enjoyed this post about South Bay Home Prices please comment below…