Are home prices dropping in the Valley? (San Fernando Valley that is…)

Year over year index for housing prices dropped 5% in California from the latest Stats. This is a tough call though. Street by street, house by house there are exceptions.

In general yes. Values are still dropping as more foreclosures and short sales come on the market and depress values. Inability of borrowers to get financing is also wreaking havoc on all those pesky supply and demand curves.

Although most Short Sales are seeing multiple offers in a matter of days, the offers are low and aggressive. Unfortunately the banks often have unrealistic comps and appraisals and are looking to net out more than the market will bare.

Sort of like catching a dropping knife.

That’s the thought of the day.

(Disclaimer: This is not legal advice. This is for informational purposes only)