If you want to buy a home in San Pedro, it starts with a partnership! A partnership between you and your Realtor.  Today's market in Los Angeles County and San Pedro is a highly competitive one! That may surprise you to know especially since you've been hearing so much negative press for the last 3 years about the bubble and the bubble bursting! Depending on who you talk to it might be a while before the market makes a come back! Well, here are a few facts for you to consider; (This information comes from the California Association of Realtors)

Existing, single-family home sales increased 2.1 percent in September to a seasonally adjusted rate
  of 530,520 units on an annualized basis.

· The statewide median price of an existing single-family home increased 1.1 percent in September to
   $296,090, compared with August 2009.

· C.A.R.’s Unsold Inventory Index fell to 4.2 months in September, compared with 6.5 months in
  September 2008.

LOS ANGELES (Oct. 26) – Home sales increased 2.1 percent in September in California compared with the same period a year ago, while the median price of an existing home declined 7.3 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“The market’s momentum continued in September, as many home buyers took advantage of the federal tax credit for first-time home buyers,” said C.A.R. President James Liptak. “The success of the federal tax credit is clear. Nearly 70 percent of first-time home buyers report that the tax credit was ‘the most important’ or a ‘very important’ factor in their decision to buy a home.

“C.A.R. is calling for the U.S. Senate to swiftly adopt the Dodd-Lieberman-Isakson amendment, which would extend the federal tax credit through June 30, 2010, remove the first-time buyer requirement and extend the credit to all home buyers, and increase the qualifying income limits so more families are eligible for the credit.”

Closed escrow sales of existing, single-family detached homes in California totaled 530,520 in September at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 2.1 percent from the revised 519,530 sales pace recorded in September 2008. Sales in September 2009 increased 0.6 percent compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during September 2009 was $296,090, a 7.3 percent decrease from the revised $319,310 median for September 2008, C.A.R. reported. The September 2009 median price rose 1.1 percent compared with August’s $292,960 median price.

“A new milestone was reached in September, when five C.A.R. regions reported positive year-to-year increases in the median price, the first such increase since January 2008,” said C.A.R. Vice President and Chief Economist Leslie-Appleton-Young. “September also marked the seventh consecutive month of month-to-month increases in the statewide median price and the first single-digit decline in the year-to-year median price since October 2007, after 22 consecutive months of double-digit decreases.

“Efforts by the government to stimulate housing and the economy clearly are impacting the market. Sales have exceeded 500,000 homes for 13 consecutive months, and now are 33.1 percent higher on a year-to-date basis compared with 2008,” added Appleton-Young.

Our market is changing almost daily. It is highly competitive and especially for first time buyers obtaining an FHA loan.  If you do not have a partnership with a Realtor who will be working diligently to help you locate a home that meets your needs, negotiate a contract that will secure the home for you and work with you and your lender through out the escrow period to get that escrow to close successfully, you may as well not even try to purchase. 

You need someone on your side and you should remember that a sign with a number on it for a home that is for sale has the number of the listing agent.  A listing agent is in a contract with the seller.  Their job is to protect the sellers interests.  You need a Realtor who is going to be looking out for your interests.  That Realtor is going to be your partner and be loyal to you! In order for that partnership to work you need to be loyal too! Sometimes when you are making a purchase like this it is hard to know who to trust.  Interview your Realtor.  Make sure that you feel comfortable with that person and that you can have a level of trust with them.  You want to have peace of mind as you go through the process so the right Realtor is critical to having a good home buying experience. Choose wisely!

Wendy Rich-Soto, Realtor

Buyer Specialist

(562)606-4040

wendyrichsoto@gmail.com

http://www.WendySellsSoCal.com

FHA Commissioner Announces Delay of New FHA Condo Rule ( http://ping.fm/EsjsE )

Maybe there is still hope for all those FHA buyers trying to get into their first home afterall!

Can an FHA buyer still purchase a condo in Long Beach, California?  Well, that depends on who you talk to.  A lender can tell you that they can do a loan all day long but at the end of the transaction when the talking stops and the funding is due to occur and it can't then it doesn't really matter what they said before.  The point is that lending guidelines are changing daily.  If we are not updating our knowledge about what is happening in the mortgage industry right now, we may as well not even be Realtors!

As of September 1, 2009, new condo purchase rules were enabled which state that if a condo building was converted a reserve study must be produced and if the reserves are not at 60%, HUD will not insure an FHA purchase and therefore, an FHA buyer cannot purchase that unit. But wait...there's more!

As of October 1, 2009, all FHA approved condo projects must be certified every two years.  A reserve study is needed and if reserves are not at 60%, then that project will lose its certification and there will be no more FHA purchases in that building, at least for two years.  Then the association can reapply for certification. 

Let us not forget that the owner occupancy ratio has to be 51% or higher and that is just today.  It can change at any time!

Right now the easiest way to purchase a condo in Long Beach is to be a conventional buyer.  But how many people just have a 15% down payment ready to go?  Not many and especially in this economy and market climate! It almost seems like purchasing a single family residence is going to be the only option for FHA buyers for a while.

It is amazing how our market continues to change.  As the market began its correction it was no mans land.  Then as prices started to tumble it became a buyers market. Once the buyers got out there and started buying as quickly as possible it became a false sellers market because of supply or lack thereof and demand.  Now it feels as though it is changing one more time.  Everyone is waiting with baited breath for the incoming long promised REO listings that are due to surface after the moratorium was lifted. In the meantime, pickins are slim out there!  If something is priced right and it is in good condition, it usually sells within its first week on the market and with multiple bids and usually above asking.  However, strategy wise, bidding higher and higher can come back to bite a buyer if the property doesn't appraise which in this declining market can happen more often than not.  If you are dealing with a bank owned property, then there is a really good chance they will be realistic and reduce their price based on the appraisal.  However, if it is privately held, they have a bottom line and if they cannot meet their bottom line by selling it at the appraised value they may choose to hold onto it and rent it or continue to live there.  Lord knows that the banks are coming around finally and doing loan modifications these days to stop foreclosures from occuring.  Take nothing for granted in this market and don't assume you have it all figured out because by tomorrow, it is going to change again.

So many people that I talk to tell me that they don't want to buy a home right now because prices are still dropping. Yes, I say...you are correct. But, why would you wait for prices to drop?  Why don't you drop them yourself? They say, "Huh?" If a home you fall in love with is listed for $350,000 and you offer the seller $325,000 and they accept your offer...didn't you just drop the price of the property yourself? And in this market sellers are wheeling and dealing! They want out for so many reasons! Some are just as worried about prices going lower as you as a buyer may be! But...find that happy medium and everyone wins! Give me a call and let's go on a hunt! I think you will be pleasantly surprised by what you can buy for the money these days!  Affordability is back in style and you are about to become a style guru!