RANCHO CUCAMONGA, Calif. – First time home buyers saving up for a down payment have a few more years to build up the nest egg before prices will climb again in California or Nevada, said Terrin Griffiths, league economist for both states.
"I think we've seen the bulk of price declines already, but we expect that prices will continue to go down, bottoming in the 2nd quarter of 2009," Griffiths said. "We're expecting prices to remain there for a period of time. There won't be a bounce back like we've experienced in past markets."
Griffiths said that homes won't gain any significant value until late 2010 or 2011, other than keeping modest pace with inflation.
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However, Griffiths said homes sales are picking up in California and Nevada. First time homebuyers and investors are returning to the market, lured by prices that have returned to 2003′s numbers, according to San Diego based MDA DataQuick.
Griffiths said 2009 economic forecasts predicting more foreclosures and job losses are discouraging home buyers from returning in large numbers.
"It takes someone with nerve to buy in a declining market," she said.
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