Monday May 5 - "Does the California Market Really Affect Me?" Question: If I live in Florida does the California real estate tumble really affect me? Answer: In the sense of neighborhood home prices, no. The states are thousands of miles apart and real estate is a localized commodity, thus what happens in Boynton Beach has no direct impact on home prices in Burbank -- or vice versa. In the case of your particular question, RealtyTrac.com reports that in March the states of Nevada (1), California (2) and Florida (3) lead the nation in foreclosures. While real estate values are determined locally, mortgage rates and availability are not. If you have a lot of foreclosures, then lenders will pull back from the marketplace -- as they are now doing. That will impact not only areas with slow sales, but even areas which are doing well.

Published: May 5, 2008

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