DON'T BELIEVE EVERYTHING YOU READ

Newspaper accounts would have you believe that housing prices have gone up even as fewer homebuyers are willing to pay more.  That's because, as covered before in this column, year over year prices are still slightly rising because of the influence of the 2013 numbers in the median configuration of pricing.  In fact, prices are stable and low interest rates are having a "yawn" effect on would be buyers.  But if you can get in now, you should.  Every poll taken recently, regarding the Millennial Generation, indicates strong belief in home ownership.  They poll even higher than did the Boomer Generation and they've driven real estate prices for 30 years.  But the M generation will not go into extreme debt for home ownership.  Just like the Great Depression shaped that generation, so has the Great Recession shaped the M generation.  They are savers; practical in nearly every way.  Look for them to save and save and then...buy.  So why get in now?  Because sometime in the next 2-3 years, supply and demand will take over and prices will rise again.  The next 24 months may be some of the most reasonable months of housing appreciation that So Cal will see for the next decade.  Other reasons for modest growth?  Just as the stock market cannot forever climb just because of cheap money, and without earnings by those companies, real estate cannot sustain long term appreciation without affordability and that comes from payroll earnings.  Salaries and incomes must catch up and then saddle up side by side for the most successful and sustainable market.  Are we on our way towards this?  Yes, unmistakably we are, and it cannot hurt for all who can find their ideal home or investment, to do so before increased competition limits your choices. Prices will not come down significantly, in fact, probably only based on condition, location, and competition.  A good recovering market is in the works.