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Buyers Market is back in California!!!

By Jason Ian Hector

Real Estate Broker/Owner with Action Investments and Hawaii Pacific Realty BRE Lic# 01481898

May 27, 2008 07:09 PM

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.

California Housing Market @ A Glance

Housing Market Indicators
State of California	Reporting Period	Current Period	Last Period	Year Ago	M-to-M Change from Last Period	Y-to-Y Change from Year Ago
Existing Home Sales (SAAR)	March 2008	318,830	340,580	422,300	-6.4%	-24.5%
Median Home Price	March 2008	$413,980	$419,640	$582,930	-1.3%	-29.0%
Unsold Inventory Index (months)	March 2008	11.6	14.4	7.6	-19.4%	52.6%
Median Time on Market (days)	March 2008	56.7	69.8	52.9	-18.8%	7.2%
First-Time Buyer Housing Affordability Index (HAI)	2007 Q4	33%	24%	25%	9.0%	8.0%
30-year fixed-rate mortgage (FRM)*	March 2008	5.97%	5.92%	6.16%	0.05%	-0.19%

*SOURCE: Federal Home Loan Mortgage Corp.

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David Saks

Memphis, TN

Broker / Industry Analyst

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.

May 27, 2008 07:53 PM

Jason Ian Hector

Action Investments and Hawaii Pacific Realty - Porter Ranch, CA

Real Estate Broker in California and Hawaii

Well said David. This brings me to the thought of rising commodity prices and inflationary pressure on the dollar. Real estate is similar to a commodity in that it is a finite resourse in high demand. Washington Mutual lost 12 1/2% of its value just today. This to me says that there are many more foreclosures to come than we expect. This will be a great opportunity for the buyers.

Jun 06, 2008 10:25 AM

Buyers Market is back in California!!!

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