Mike Zagaris noted several key points for successful real estate agents to take heed of at this mornings Modesto Residential Real Estate meeting. Opportunity is ripe in this market. Foreclosed homes present the perfect opportunity for investors and first-time home buyers; “The Valley is covered in Gold.” Only a year ago, median home prices were at $332,000 and now, just last month, they have decreased to $186,000*. Phil Levin, Modesto Residential Manager, noted that the amount home prices are decreasing each month is becoming less and less and the past few months we have been seeing the month to month decreases level off. Whether or not that will continue to be the trend is unclear. Zagaris noted that we could be in this market for the next couple years, but investors and first-time home buyers will be smiling all the way to the bank as the inventory of houses on the market continues to decrease (17 months of inventory only a year ago to 4 months of inventory presently*). Eventually the laws of supply and demand will shift home prices back up; less inventory available inevitably leading to higher price points.
For now, successful agents and their clients will take advantage of the opportunity available.
*(according to TrendGraphix)