I just received an email from a long time friend who lives up on the West side of Los Angeles. She just read an article on the LA Times website that frightened her. The article discusses the luxury market, mostly in the Beverly Hills area, the cities decreased tax income and the downward impact on several luxury neighborhoods and many luxury businesses in the Southern California area.
My friend and her husband currently live in a rental and had searched for a home back when the market was sizzling hot. At that time the only homes they might be able to afford would have cost too much to put into livable condition. They were basically priced out of the market. My friend wants to know if now is a good time to buy a house or if they should continue to wait. She expresses concern that homes in the San Fernando Valley are receiving multiple offers. Reading the news has frightened and confused her.
Lets look at this for a minute. Here is a couple who has been expressing a desire to purchase a home for many years. They searched when they really could not afford to buy one, downgraded their search to Fixer Uppers that they also couldn't buy comfortably and then gave up, resigning themselves to living in rent indefinitely without the benefits and rewards of home ownership. This couple represents the same feelings and emotions of many buyers in today's market.
This couple can afford to buy a home now, a nice one. They can get a great interest rate right now and terrific loan terms. Another client of ours, a first time home buyer, was just quoted 4.6% with 1.25 points on a 30 year fixed home loan through a very reputable direct lender; that client has a modest income a good credit score, currently lives in rent and is now in escrow on a fantastic Long Beach Condo - with a view! She will be enjoying the benefits of home ownership finally!
FHA loans can be had with just 3.5% down payment. Conventional loans have been available with just 5% down, this is starting to change now with many lenders beginning to demand 10% down payments, I wouldn't be surprised to see that number go up to 20% by the end of the year. Loan standards are tightening and will continue to do so. As these lenders raise the bar and make loans available to only the most qualified many less qualified buyers will once again be locked out of buying a home, they just won't be able to qualify.
Read more over at the Long Beach Real Estate Home Blog>>>>>>>>>>>>>>>>
Long Beach Home Buyer Tips
Laurie Manny Professional Group
244 Redondo Avenue
Belmont Heights
Long Beach, California 90803
(562) 212-5420
;)
;)
Laurie - This is a great explaination of the opportunity that this may be the best chance they will ever have to get the home of their dreams.