Monday, September 25, 2006

Property in the Los Angeles area is still Strong value

Just moving up a little slower. Great time to be a buyer. Panic is over. Pick the place you want to invest in and a market price can be negotiated.

Just for back up I want to offer this information from Veros Real Estate solutions. It has great info for mortgage and Real Estate businesses. So here it is again for you, my potential client.

Veros Forecasts Nation’s 10 Hottest and Coldest Markets JUNE 30, 2006
– Veros has released the results of its quarterly forecasting of the nation’s real estate markets, revealing the top 10 hottest and coldest markets for the next 12 months…. (edit) its automated home valuation analytics are highly accurate and dependable.

According to Veros, the ten markets in its coverage area that will see the greatest home price appreciation over the next 12 months, along with the expected appreciation rate will be: Seattle, 11%; San Bernadino County, Calif., 9%; Jacksonville, 9%; Raleigh/Durham, 8%; Tampa, 8%; Tucson, 7%; Riverside County, Calif., 7%; Oakland, 7%; Los Angeles, 7%; and Nashville, 7%.

The markets that show the least home price appreciation over the next 12 months are expected to be: Rochester, -4%; Worchester, -2%; Sacramento, -2%; Memphis, -1%; Dayton , -1%; Grand Rapids, 0%; Boston, 0%; Cleveland, 0%; Detroit, 0%; and Fall River, MA, 0%.

Veros Vice President of Technology Eric Fox presented the material at PMC 2006 in Dana Point, Calif. “We expect some home price appreciation on the hot market side, but nothing compared to what we’ve seen in the past. There are no 25%-plus markets in our projections. Appreciation is slowing way down.” Fox compared Veros’ predictions from April 2005 for the period Q205 through Q106 to actual home appreciation measured in the 10 hot and cold markets the company identified at that time. The projections made at the time proved to be very accurate. Using a typical measure used by statisticians to measure forecasting accuracy, R-squared, Veros scored 0.68 out of 1.0, indicating that nearly 70% of the variation in the results had been accurately predicted. Performing the same analysis on the results from the predictions made in April 2004 yielded an R-squared of 0.78. The prediction made in April 2003 yielded a 0.65.

So... Looks good for the local Los Angeles area. Appreciatiion of 7% per year means it is still a good time to buy.

Let me know what you think of that.
Keith Lambert
310-754-8116 or