I would really like to hear people opinion of southern california home price in the next 2 years.

Have we reach the peak or will it continue climbing?

It's got me baffled....
thought that it would have peaked by late summer... 2004. Guess not yet.

Well, the market in Northern California is very hot right now, as it was last year. Homes are selling for way over asking. Inventory has been substantially low. Remember supply and demand? Well, there are more buyers than sellers now. My opinion relating to Southern CA is that I have always known it to be a busy and crazy market.

I don't see any indications of that market slowing down. However, I'm not sure how much higher it can grow either

I understand the majority of people that now live in California don't have the income to qualify to buy; that's not a good thing.

There will come a point, and it's appears to be soon, where prices will have to correct themselves or no one will be able to buy in California.

http://www.msnbc.msn.com/id/3130361

"House values to jump 13% in 2004, real estate group says"

"SAN FRANCISCO, Oct. 2 - Fewer than one in five California families will be able to afford a median-priced house next year, as real estate prices climb further amid a statewide housing shortage, according to a forecast released Thursday."

“While mortgage interest rates will remain near their historic lows next year, it won’t be enough to mitigate affordability concerns in most regions of the state,” said Toby Bradley, president of the real estate group. “Housing affordability in California will continue to be negatively impacted by rising home prices in 2004 and relatively slow growth in household income,” Bradley said."

If you're waiting for prices to DROP radically, and thereby save huge money... forget it.

Why? Mortgage Rates!

Today, you can get a start rate of 1% or 1.25% or 1.5%... good for 12 months... after that... your payment only goes up 7% of your monthly payment per year.

Even if prices DROP... mortgage rates will definately RISE... and your monthly payment will either be nearly the same as before OR even higher!

Your best bet is to purchase in areas not as high yet (Riverside or San Bernardino Counties etc. OR buy UNITS and get other families to offset your payments... or create a Rent to Own situation, or buy property out of state and use those tenants to pay your monthly here in Cali!

Many options. You mainly need a sharp agent (if you're not one already). That's my take.