Are CA homeowners in for a rude awakening in 2006? Will Real Estate see a bubble burst or a soft landing?

I have been mulling over the same question. I have decided that the bubble is more hyped up then it should be and that if anything prices will drop a bit or rmain the same over the next year or two. I'm just going to bite the bullet and buy a half million dollar property, i'm probably going to buy in Glendale in the next two months.

Good Luck finding the right house!

Monitor stories about California real estate investors using Google News alerts. When large numbers of investors start putting their properties up for sale, it's a sure sign that the smart money is going elsewhere. If investors start pulling out of the market on a large scale, we'll see an inflation of existing inventory and a decline in demand which drives prices down.

Real estate investors are a lot like Wall Street institutional investors. When they bail, it has a major impact on the value of the stocks and funds they are abandoning. A recent story about real estate investors bailing out of the High Desert market is a good indication that they think the market has peaked and, as a consequence, they're taking their profits while they're still on the table.

Every year there seems to be discussion about the real estate "bubble" bursting and housing prices plummeting. Historically, home prices haven't dropped that significantly and only appreciate over time.

It's possible that there might be a minor downward trend in prices, especially if people refuse to pay the high prices people are demanding, but in the long-run the homes will appreciate.

If you're looking for a long-term investment property, the sooner you buy, the better. However, if you only plan on holding on to the home for a few months and then "flip" it, there is a possibility that the house could temporarily depreciate in value and you could lose money.

Rude awakening? No, an anjustment yes and it depends on location. Southern CA I suspect a high demand. The market is the market and a great time for the buyer consumer.

I don't think that California is lined up for a bubble bursting reminiscent of the 80's. I do think that we will see prices settle and appreciation back to the low 2-3% range. I think the coastal areas are particularly insulated against bubble-bursting due to sustained popularity as vacation areas and a nice place to retire.

I do think, however, that investment properties will certainly become a tackier subject, due to slowing appreciation and low rental return vs high mortgage payments.

It's almost fun to watch the media try their hardest to create a calamity for the sake of sensationalism.

As one the only female home builders in Indiana(no male partener), i have not noticed any softening of the market in new home sells, this winter was as good as 02-03-04...but my friends in the used real estate market all got winter jobs outside their jobs in sells..... and on the eastcoast the market prices are high now but a lot of foreclosers there from high taxes and payments....the question to you would be are u married? ....your hot! seriously