“California’s rollercoaster ride to end?”

Let me preface…This is the title to the article just released by INMAN News…I’m not bashing Inman…it’s just reporting a story.

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I am not a member of CAR for this very reason. CAR has been touting this resurgence of home prices every chance they get. Their lockstep with National Association of Realtors (NAR) that is currently running a television ad boasting increased home values. This may be true for Indiana, but what about CA, NY, AZ, FL…where most of the US population resides?

What CAR is failing to do is act ethically. Their predictions are poor attempts to spin reality. What CAR needs to do is tell the truth.

Shadow inventory of homes held by dishonest banks is enough to lay this CAR spin to rest. Expectations of Shadow inventory top 7,000,000 nationwide. Approximately 1/3 of these are in California. If they hit the market tomorrow, today’s $450,000 homes would be selling for $50,000 or less.

In San Bernardino County alone there are approximately 150 notices of defaults (nod’s) hitting the market every day or 39,000+ this year alone.

These numbers are staggering. CAR’s “mumbo jumbo” card tricks can’t hide that reality.

I predict that home prices will drop another 15 to 20% over the next year. This is real based on the amount of inventory available on the MLS today. In most cases, the lower priced homes are selling…but the homes $450,000+ are sitting. The inventory is growing for these homes…daily. In many areas of California, their are 2 years…24 months of housing inventory in MLS listed as ACTIVE…no offers.

CAR. step up and do the right thing and be honest.

Kris Darney
DRE#01464957