THE BUYERS MARKET IS HERE, LETS OPEN ESCROW!!!
The buyers market is finally here!!! According to the March 2008 “Housing Market Indicators” published by the Federal Home Loan Mortgage Corp, the inventory of unsold homes in California was 11.6 months, almost a full year. This is a 52.6% increase from a year ago levels of just 7.6 months. This large increase in inventory has helped many first time home buyers to now afford to buy.
For example, a condo in Tarzana, Ca that rents for about $1400 per month can now be purchased for around $200,000. If you have a down-payment of 20%, assuming a 6% interest rate and $160,000 loan amount, gives a payment of $959.28 per month. This makes leave room for HOA, taxes, insurance, etc all close to the same amount that you would pay in rent. What a relief to finally see housing affordable again.
Now is the time to take advantage of the buyers market. Lets take advantage of the choices out there to find that special property. As a real estate broker, investment property owner, and former retail banker, I am ready to bring all of my knowledge to work for you. Just email me at jhector@socal.rr.com with your specific real estate criteria and I will respond to you that same day.
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California Housing Market @ A Glance
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Housing Market Indicators
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State of California
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Reporting Period
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Current
Period
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Last
Period
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Year
Ago
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M-to-M
Change from Last Period
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Y-to-Y
Change from Year Ago
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Existing Home Sales (SAAR)
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March 2008
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318,830
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340,580
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422,300
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-6.4%
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-24.5%
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Median Home Price
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March 2008
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$413,980
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$419,640
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$582,930
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-1.3%
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-29.0%
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Unsold Inventory Index (months)
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March 2008
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11.6
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14.4
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7.6
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-19.4%
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52.6%
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Median Time on Market (days)
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March 2008
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56.7
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69.8
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52.9
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-18.8%
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7.2%
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First-Time Buyer Housing Affordability Index (HAI)
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2007 Q4
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33%
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24%
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25%
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9.0%
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8.0%
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30-year fixed-rate mortgage (FRM)*
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March 2008
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5.97%
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5.92%
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6.16%
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0.05%
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-0.19%
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*SOURCE: Federal Home Loan Mortgage Corp.
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Good thoughts, Jason. Hopefully, market correction will become more evident in the days to follow in most of our larger metropolitan communities since a buyers market seems to be placing a considerable positive shift in the direction of sales. The antithesis is the declining median home value index. I believe that buying resurgence will ultimately correct the shift and stabilize the existing market condition. Hope your having a fine week.