Real Estate Article: The Market is Changing
04/10/2006

This may not be apparent to the general public, but as an experienced professional, I can sense that there is a very good chance that our market is slowing down in the Chino Valley.  

Back in 2004, the Chino Hills real estate market took a big turn when unsold inventory took a huge leap from the low 60’s to over 360 homes over the course of a few months. During that year, the unusual increase in unsold inventory index ultimately led to the rapid decline of prices. Now fast forward to our current situation. Unsold inventory has gradually increased to 320 homes and appears to still be rising. Of course our current market isn’t exactly the same as back in 2004 but there are similarities. 

From what’s happened in the past, we know that an increased unsold inventory is one of the main factors affecting the direction of the market. In addition, the volume of sales thus far in 2006 are lower by around 20 percent when compared to the corresponding months of the previous year. Given those factors, I think it is safe to assume that our market is slowing down.

       The market actually begin showing signs of slowing down about half a year ago but from reviewing statistical data, it seemed to be only affecting houses in the higher bracket of the price range. In recent months, however, houses in the lower bracket have also been affected. Many economists have also predicted that prices will gradually fall but not at a dramatic rate.

            Some of you may have started to worry at this point but you shouldn’t, our housing market should still be able to maintain stability for a number of reasons. The changes that have occurred are not detrimental but merely normal fluctuations. There is also a constant flow of immigrants in California who are constantly looking for homes. In fact, the number far exceeds the number of new homes being built. As a seller there is no clause for concern, there is still adequate demand for homes. As for buyers, prices might be declining but not at a dramatic rate and with such a large selection to choose form it’s still a good time to buy.

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