'For sale' signs scattered across one Fontana neighborhood shows just how hard the housing crisis has hit the Southland. There's too many homes for sale, but not enough buyers, pushing home prices down even more.
The California Association of Realtors released their projection for 2009. They are expecting home prices to drop another six percent, and the average price they are expecting $358,000 for a home in southern California. In 2008, we had already dropped 31 percent, averaging $381,000, and in 2007, prices were averaging $558,000. In a two year span, we are dropping about $200,000.
Also, mortgage rates have been inching up.
There is a silver lining: the California Association of Realtors is expecting home sales to go up about 13 percent, which will help take inventory off the market. However, everything depends on the economy.