The past few years we've watched as home prices slid like a skier racing down a slope. And as ugly as that has been, the silver lining today is that housing is MORE affordable.
According to the California Association of Realtors (C.A.R.), AFFORDABILITY is the HIGHEST SINCE the START OF DECADE. Here in California, home prices have declined markedly since peaking in mid-2007, and the fourth quarter of 2008 was no exception as the median price of an existing detached single-family home fell 41 percent from the same time a year earlier; the median price at that time was $291,800 compared to $492,490 for the fourth quarter of 2007.
The good news (YES Virginia, there is good news) is that these price declines have dramatically improved affordability in our state (CA). C.A.R.'s Housing Affordability Index for First-Time Buyers, which measures the share of all households that can afford an entry-level home, rose to 59 percent in the fourth quarter of 2008. This means that nearly six in 10 households (in California) can afford a home (defined as 85 percent of the median home price) in the fourth quarter. Affordability has doubled from a year earlier when the affordability index was at 33 percent. Now it stands at its highest level since the start of the decade. The index is based on entry-level home prices, a 10 percent down-payment, an ARM effective composite rate, and a 40 percent debt-qualifying ratio.
Affordability in the Inland Empire (Riverside and San Bernardino Counties) climbed 25 points from 45 percent to 70 percent in the fourth quarter of last year.
So, all you first time buyers, ALL buyers, check out homes in your area. You have nothing to lose and everything to GAIN when you become a homeowner! THIS is a GREAT TIME to BUY.
If you'd like a list of homes in your price range, give me a call, or chick on the link below.
(click on properties, choose your price range)
CELL: 909-273-4542 OFFICE: 909-336-9500 X 263 ~ EMAIL: KATDELONG@WINDERMERE.COM
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