The Homebuyer Tax Credit was extended "WAY" out there, until April 30, 2010 (to get under contract and close by June 30, 2010). Hey, though, it is already February 5th, 2010. February , March, April. Three short months to find "the" home and get under contract. You can do it in our market, Temecula, Murrieta, Oceanside, San Diego, Yucca Valley, Joshua Tree, Twentynine Palms. It is even more likely in my sister's areas of coverage, Palos Verdes, Hermosa Beach, Manhattan Beach, Torrance, Santa Monica and surrounding areas. Why is it harder in my area?
If this were late 2008, it would be a piece of cake. That was when we heard crickets in the housing market here in Temecula, Murrieta, and other areas of Southern California (shout out to San Diego, Oceanside, Yucca Valley, Twentynine Palms, Joshua Tree and Yucca Valley, where Sand to Sea Properties also has great agents). Buyers were king and had the choice of the market. Thirty, forty homes and more on the market, meeting their entry-level needs at prices below replacement cost.
At the very low ends of the market in Temecula, a buyer could find a 4 bedroom home in a lovely suburban neighborhood going to some of California's top schools, all ranked 8, 9 or 10 on California's scale of 10 with 10 being tops. And at prices in the mid-$200,000s. The bigger-box homes, over 3000 square feet, were into the lower $300,000s when two years before they were in the mid-$500,000s.
What does this mean in terms of monthly payment? At the lower prices, a buyer could pay monthly less than what it would cost to rent the home out if he were buying it as an investment. That is a big buying signal, and buyers took it and swung for the fences!
By 2009, multiple offers on homes here in the Temecula valley region are the norm. And not just a few. 20 to 30 offers on homes - especially bank-owned homes which have a more certain 30 to 45 day time frame for closing, as opposed to short sales being 4 to 6 months and still no guarantee to close.
When a single buyer has to put out 10, 20, 30 offers on as many homes to finally be the one chosen as the buyer for a home, getting into escrow within two or three months starts to look iffy. More iffy for buyers who insist on trying to lowball because they have heard it is a "buyer's market." At these prices, it is a buyer's market - meaning the right time to buy - but in terms of inventory of homes on the market versus a lot of buyers trying to buy them, it has swung to be a seller's market. When a buyer starts having to do this kind of legwork around their job and family, it takes time. Weeks, yes. Months, maybe.
Compare to Palos Verdes, Hermosa Beach, Manhattan Beach, Torrance, Santa Monica and surrounding areas, where it is multiple offers on distressed properties that are listed under market, and much fewer offers. You can can be the only buyer negotiating with thar seller, much more likely to be able to come to agreement, get under contract by the tax deadline for the $8000 homebuyer tax credit. For example, Sand to Sea Properties helped a client buy the duplex pictured here in Manhattan Beach Sand Section. For help in that area, contact our wonderful associate broker (and my twin sister) Laura Buchanan. Her web site is www.RealEstateInGreaterLosAngeles.com.
The exception is military buyers and others who were deployed overseas for certain time periods. You can see my blog on that topic - they get an extra year! - by clicking, My Blog on Military Homebuyer Tax Credit Extension.
For questions, call direct 951-704-4559, or visit www.SandToSeaProperties.com.
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