As we have been saying at this site, the market bubble is not all inclusive. It is mainly on the coasts and has hit the higher ends of the marketplace. Entry level homes in the bubble areas, and all homes in most of the country are still a good investment. The Real Estate Journal has a good article on this today.
“I’d say sell some of those excess properties, particularly in some of these more volatile up-and-down markets,” Keene said in an interview with MarketWatch. Keene, a chartered financial analyst, is also a regional manager with Wells Fargo’s private client services, in Walnut Creek, Calif.
Of course, any real-estate discussion requires a nod to locale: Where you’re buying a home makes a difference. But it also matters which part of the market you’re looking at, the upper bracket or the low side.Higher-end homes are likelier to see prices easing while lower-priced homes in less-volatile areas may still enjoy some gains, Keene said.
“I take a look at the market in two segments. The pricing point for the segment depends on where you are in the country,” Keene said. “In the lower-price market, definitely you’ll still see some [home-price] increases, 5%, 6%, 7%, 8%, maybe even 10%, 11% in places like Sacramento,” he said. “But in San Diego, Los Angeles, Boston [price gains] might be more like 2%, 3%,” he said.
Meanwhile, “the higher-priced market, say above $1 million in a place like Washington, D.C., you’ll start to see some drops in some prices.” via RealEstateJournal
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