April 17th, 2011 11:41 AM by Lehel S.
Over the last few months we have wondered what will prices do? Will they go up, stay the same, or go down?
Most of last year the market moved in a range that was up or down 5% from the previous month(s) finishing 2% above the previous year's average price per square foot. Below are the numbers since 2002 as averaged for that year. These are for Covina, California and ae in general true for most of the San Gabriel Valley (between the 605 and 15 freeways and 60 freeway tot he mountains).
HOMES AVERAGE PRICE PER SQUARE FOOT CHANGE FROM PREVIOUS YEAR
2002 $ 185.60
2003 $ 211.91 14%
2004 $ 276.93 31%
2005 $ 329.17 19%
2006 $ 367.41 12%
2007 $ 334.50 -9%
2008 $ 269.29 -19%
2009 $ 232.88 -14%
2010 $ 237.67 2%
2011 $ 224.83 -5%
More detailed data is posted at http://www.teamszucs.com/CovinaHomeSalesActivity.
The highest price was reached in September of 2006 at $ 390.14 per sq ft. The previous low was in February 2009 at $ 220.53. Since than the market has moved in an up and down range of no more than 10% from this price but never going below this. We were close at $ 222.35 in November of 2010.
Than came February of this year where the average price per square foot was $ 211.30. A new low. I would say that we have hit a Double Dip in real estate prices.
Where do we go from here? The real estate market still has a lot of issues to work out. I believe that we are going to hover around current price range for the next year (at least), and I do think we are going to test these bottom prices.
I hope I am wrong and the market will just start to turn around.
I would like to hear what you think, so pleae let me know your thoughts on this.