We all wish we had a crystal ball to know what will happen in our Palos Verdes real estate market. Leslie Appleton Young, Chief Economist for the California Association of Realtors, gave us her opinion on September 28, 2010, at our Palos Verdes Board of Realtors meeting. Of note is that according to the CAR survey, 50% of sales had multiple offers which has also been my experience this year. Below are the highlights:
– The economy will experience a slow tepid recovery.
– Fear and uncertainty are keeping potential buyers out of the market.
– Interest rates are at historic lows.
– California is drowning under entitlements.
– Sales hit bottom in 2007 and values peaked in 2005. It may take 5 – 8 years for prices to return to their highs.
– Distressed sales will continue for the next 3 to 4 years.
– California new housing permits dropped 83% since 2004.
The entire 2010 California Real Estate Market Update presented by Leslie Appleton Young can be accessed by clicking here. There is specific information for Palos Verdes Estates, Rancho Palos Verdes and Rolling Hills Estates on pages 38 to 58 which tracks the information I posted here on September 10th (click here to view). She will be making a formal presentation on October 6, 2010, at the California Association of Realtor convention. Her comments are usually posted in the LA Times the next day.
Graph courtesy of California Association of Realtors
