When Will Los Angeles Area Homes Regain Their Value?

You're probably beginning to wonder: When will Los Angeles area homes regain their value? If you own a home in L.A., I regret to tell you that you’ll need to wait another 15 years before your home's value will return to pre-recession levels. This, according to the reputable Fiserv Case-Schiller Index, that also reports that we've yet to see the worst of it, as the U.S. will continue to experience an overall downward decent in home values. The Index forecasts a further 7% decline in home prices through the end of the year, with the beginnings of a sluggish economic recovery no where in sight until the beginning of 2011.
The index shows volatility in the U.S. real estate market and home prices like none experienced in recent or distant history. On a somewhat positive note, other states, like Michigan, Ohio, and Nevada can expect a quicker rebound of somewhere around 10 years to see home prices climb back to their previous values. But while you're waiting for 2025 to see Los Angeles area homes regain their value, rest assured that the June Fiserv Case-Schiller Index report suggests that there is 'broad evidence' that U.S. housing markets are stabilizing.
That report from the fourth quarter of 2009 positively suggests that U.S. home prices were rising in 155 out of 384 metro areas, even in hard-hit states like California. But that good news didn't gain much momentum since the index numbers also showed that the average U.S. home price slid 2.5% from the same period in 2008.
The index notes high unemployment rates and an over abundance of distressed and foreclosed properties as key reasons for such lackluster performance, especially in areas like Los Angeles and the rest of California.
Nevertheless, American optimism that an overdue economic recovery has finally arrived seems to be the prevailing force as home prices tick upward. Devastating drops in home prices over the last several years have also quite simply made the cost of home ownership more affordable again, for both first-time home buyers and investors. Now, we must work towards job growth and economic recovery while and striving to be patient as Los Angeles area homes regain their value.
For a more detailed perspective on the Los Angeles area real estate market or a list of homes for sale, please visit UrbanPulseProperties.