Carolina Chacon and Seth T. J. Miller

There are two divergent philosophies about where the market is heading in the coming months. The figures and trends for the Residential Housing Market. Prices have leveled off, and have actually been steadily rising (by 1-2% growth from year-to-year comparisons). The amount of inventory turning over has been over 500,000 for the past 12 months leading to inventory being low in many markets, and buyer demand is still very high (but is it artificially high).

However, professionals and pundits are reluctant to admit that the worst is over due to the artificial real estate parameters that have been in play. Some have used the stats of the new construction coming to a halt after the California new construction initiative ran out of money after only three months. Many are expecting this to be the case for the residential market, and although I can certain agree with this on a National level I am hard pressed to believe this to be true at the local level.

You can read why I think the local Southern California Real Estate Market will not be affected as much as the National Average.

Don't just hire anyone... Hire a Pro. Licensed REALTOR(s)® California: to list your property for sale or to purchase a property in Alhambra, Anaheim, Arcadia, Azusa, Baldwin Park, Brea, Chino, Chino Hills, Claremont, Corona, Covina, Diamond Bar, Duarte, Glendora, Hacienda Heights, La Habra, La Verne, Monrovia, Montclair, Monterey Park, Ontario, Pasadena, Placentia, Pomona, Rosemead, Rowland Heights, San Dimas, South Pasadena, Upland, Walnut, West Covina, Whittier.

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Many conversations about where the market will go after the First-Time Home Buyers Tax Credit wears off is escalating, and although the National trend is pointing towards decline in prices and transactions I believe the Southern California Real Estate Market is in a unique situation that will save it from decline.

In West Covina, CA as of 11:02am on 10/27/2009 there are 115 Single-Family Residences available for sale (*Figure pulled from MRMLS and CAROTS data). The average rate that homes have been entering into contracts in West Covina has steadily been 55-60 homes a month. This past month 57 properties entered into escrow. This leaves the West Covina Real Estate Market with just over 2 months inventory on hand. Anything under 4.5 months inventory on hand is considered to be a shortage in inventory. A balanced market would have 5-7 months of housing inventory on hand. With this said we'd have to have almost double our inventory on hand to tip the scale back into the favor of a buyer's market.

This is a lot of homes, and it may make one wonder: Is the projected slow down is enough to drastically shift the West Covina Real Estate markets?

Don't just hire anyone... Hire a Pro. Licensed REALTOR(s)® California: to list your property for sale or to purchase a property in Alhambra, Anaheim, Arcadia, Azusa, Baldwin Park, Brea, Chino, Chino Hills, Claremont, Corona, Covina, Diamond Bar, Duarte, Glendora, Hacienda Heights, La Habra, La Verne, Monrovia, Montclair, Monterey Park, Ontario, Pasadena, Placentia, Pomona, Rosemead, Rowland Heights, San Dimas, South Pasadena, Upland, Walnut, West Covina, Whittier.

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West Covina, CA- According to the C.A.R. “2009 First-time Home Buyers Tax Credit Survey”, four out of ten (39 percent) first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered. I know most media reporters say this as a BAD thing, and a sign that the buyers will go back into hiding after they disappear. However, 60% of the first time home buyers are still planning to purchase a home EVEN IF they don't get the First-Time Home Buyers Tax Credit.

Since most homes listed in West Covina under $400,000 are receiving multiple bids, and ALL homes listed under $251,000 are in bidding wars; I feel it is safe to presume that we will not really feel the full effect of a 40% reduction in competition. For fun though, we will suppose that we didn't have multiple offers, and that the 40% reduction in demand will actually have a direct correlation into the West Covina Housing Market Sales(highly unlikely). So our rate of sales would drop by 40% from 57units/month to 34units/month which would raise the West Covina Residential inventory from just over 2 months on-hand inventory to 3.4 months on-hand inventory. This means West Covina would STILL be in a seller's market (due to inventory being low, resulting in competing bids).

So even if the slow down has a direct translation into sales, which I believe to be highly unlikely as we have so many competing offers as it is, the West Covina Housing Market would still be in a Seller's Market. If you're looking to transition from your current home, either to upgrade or down-size, this could prove to be a great time to make the transition. Call us for a free  no obligation consultation on how this process could work for you.

Don't just hire anyone... Hire a Pro. Licensed REALTOR(s)® California: to list your property for sale or to purchase a property in Alhambra, Anaheim, Arcadia, Azusa, Baldwin Park, Brea, Chino, Chino Hills, Claremont, Corona, Covina, Diamond Bar, Duarte, Glendora, Hacienda Heights, La Habra, La Verne, Monrovia, Montclair, Monterey Park, Ontario, Pasadena, Placentia, Pomona, Rosemead, Rowland Heights, San Dimas, South Pasadena, Upland, Walnut, West Covina, Whittier.

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Need to test your vision? Any visitor to the West Covina Farmers Market may be tested at no cost on Saturday September 26 from 8:30 am to 1:00 pm. The Market is located in the Westfield parking lot between the Firestone Store and Margarita Jones Restaurant on the north side of West Covina Parkway.

Dr. David Hill of the West Covina Lions Club will perform the vision testing using the using the Lions Eye Foundation of Southern California’s Mobile Screening Unit.

So head on down to the West Covina Farmer's Market from 8:30am to 1:00pm THIS Saturday.

The West Covina Farmer's Market is held every Saturday from 8:30am to 1:00pm. It is always in the perimeter parking of the Westfield West Covina Mall. For the freshest fruit at the most competitive price come on out and support your local agricultural businesses.

Don't just hire anyone... Hire a Pro. Licensed REALTOR(s)® California: to list your property for sale or to purchase a property in Alhambra, Anaheim, Arcadia, Azusa, Baldwin Park, Brea, Chino, Chino Hills, Claremont, Corona, Covina, Diamond Bar, Duarte, Glendora, Hacienda Heights, La Habra, La Verne, Monrovia, Montclair, Monterey Park, Ontario, Pasadena, Placentia, Pomona, Rosemead, Rowland Heights, San Dimas, South Pasadena, Upland, Walnut, West Covina, Whittier.

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I have been recently asked this question and many similar questions recently. My answer to them have been fairly straight forward, but I believe it to be true.

Q: Is the Real Estate Madness going to end when school starts back up?
A: No, I don't believe it will. The current market we are in now began forming almost a year ago to create the artifical real estate market we are in now.

Residential Real Estate prices rose marginally for the past three-to-four months, and I expect this trend not only to continue but actually SPIKE just before the credit falls off. If the prices do spike, there may be a slight dip after the credit falls off, but I believe it will not come back down to where it use to be... So, if you or anyone you know is still waiting for the bottom you missed it... but don't worry there are still some great opportunities out there. You just have to go fight for them.

Don't sit out any longer! Get into the fray, but don't hire just anyone... Hire a Pro!

My Real Estate Pro

1044 W. West Covina Pkwy
West Covina, CA 91791
626.967.8686
www.MyRealEstateRealty.com

The market is always changing, and there is constantly new information to contend with. So for all of your Real Estate needs; Don't just hire anyone... Hire a Pro! My Real Estate Pro West Covina.

Licensed REALTOR(s)® California: to list your property for sale or to purchase a property in Alhambra, Anaheim, Arcadia, Azusa, Baldwin Park, Brea, Chino, Chino Hills, Claremont, Corona, Covina, Diamond Bar, Duarte, Glendora, Hacienda Heights, La Habra, La Verne, Monrovia, Montclair, Monterey Park, Ontario, Pasadena, Placentia, Pomona, Rosemead, Rowland Heights, San Dimas, South Pasadena, Upland, Walnut, West Covina, Whittier. We are always accepting Referrals

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