It finally happened. What analysts, realtors, lenders and sellers alike have been waiting for since the real estate market plummeted nearly a decade ago. The real estate market has risen to levels seen since the real estate bubble burst in 2008.
According to a recent LAtimes.com report, only Orange County has reached pre-recession levels. The median price of new and resale homes in the region reached $651,500 in May, eclipsed the previous high of $645,000 in June of 2007. This new high was not adjusted for inflation
In 2008, the great recession began and home prices reportedly bottomed out in 2009 at $370,000.
While this may seem to be cause for celebration, home prices in other counties in the region have a long way to go. For instance, prices in San Bernadino County are still 25 percent below pre-recession levels, and they are 23.6 percent behind such levels in Riverside County. But there is optimism in other parts of the region, since prices in Los Angeles and San Diego counties are approaching their 2007 levels.
Additionally, strong economic growth and the availability of home loans suggests that additional price gains are realistic in 2017 and 2018. Because of this, real estate opportunities abound for investors in residential markets just as they exist in the commercial market.
However, investors must be cautious of potential downturns. Indeed, analysts do not see catastrophic falls given the legal and regulatory protections in place now, but the help and guidance of an experienced real estate attorney can help in protecting investors.