Across the country investors have been trying to guess what the fluctuations in the real estate market will mean to their valuable investments. There seem to be a number of theories as to what the market will be doing in the coming months, but then again that is just speculation. To fully comprehend what is happening in the national real estate picture one needs to look at it from a larger perspective. Over the last 10 years real estate was growing like a snowball rolling downhill. There seemed to be no end in sight for this market and investors and home owners alike enjoyed a huge jump in their property values. Unfortunately, as things tend to do the market has seen a dramatic change that for a while has everyone asking if the bottom had completely dropped out of the market.
Saying that this was true is really jumping the gun and failing to look at things from that broader perspective.
What we are really seeing here is more of a market correction from the years of rapid inflation. There was bound to be a point where the number of buyers dropped below the number of available homes. Now that this has happened the market is straightening itself out and returning to a more average and even state. Now this does not mean that homes are losing value, merely that the rate of inflation has slowed down and homes are now selling for closer to what they are actually worth. for many years the high demand for homes inflated their values to amazing proportions and sellers and investors easily got used to that fact. As with any rapid increase in the value of anything, the leveling off of that increase can cause pandemonium and a good deal of guesswork as to what is happening.
The truth is that real estate in the major areas of popularity has retained that popularity and is still showing an increase although it is not nearly as dramatic as it once was. Take Orange County as an example. This is an area that saw immense growth and huge inflation on property values. Over that last year the average property in San Clemente has appreciated over $130,000!! So don't despair, properties are still gaining in value and investments are still earning top dollar. One simply needs to be a bit more patient and less prone to jumping to conclusions!
