Diamond Bar, CA

I often get question from buyers asking whether it is better to purchase a newly constructed home in Rancho Cugamonga or Eastvale (North Corona next to Chino).

For most buyer, depending on where you work, the decision should be very simple. For others who work at home or work near Ontario, here's a quick comparison chart to help you decide:

According to the newest sales report by California Association of Realtors, the number of home sold this July increased 43.3% comparing to July 2007.

While sales volume increased, the median price of an existing single-family detached home in California dropped 40.3% from $587,560 for July 2007 to $350,760 for July 2008.

Why are we seeing an increase in sales but decrease in price?

According to C.A.R. President William E. Brown, "Deep-discounted, distressed sales continue to drive volume in many regions of the state."

Since lenders are dumping foreclosed properties back to the market at a huge 10% to 30% discount, we are seeing large sales volume with substantially lower price than last year.

Due to the huge price drop this year, it creates a great opportunity for home buyers to secure excellent bargains at deep discounted prices.

Since it is a buyer's market now, the most logical way is to make an offer based on appraisal value.

Appraisal value is derived from comparing similar properties recently sold in the same area within past 6 months. You can obtain estimated instant valuation at Zillows and Yahoo, here's the links:

www.zillow.com
realestate.yahoo.com/Homevalues

Depending on how much you like the house and number of bids on the property, you can consult with your agent on how much to offer since you are now educated about the true value of the property.

The following is a list of home sales in neighboring cities.