One of the best ways to communicate the concept of affordability is with a real-life example. About a year and a half ago, I began working with a couple who had just celebrated their first anniversary. He had a steady job as a firefighter. She had worked in her own business for about 7 years. They had saved some money and decided it was time to move from their one bedroom apartment.
They got pre-approved by a lender. Their lender recommended they call me to help them begin their home search. When we first began looking in their price range, we looked at lots of two bedroom condos some had garages, some had parking spaces. Some were in beautiful condition and many needed a lot of work. About the middle of last year, the properties that began to pop up on the radar in their price range were single family homes that were either short sales or bank owned. Some needed work, some were in surprisingly good condition.
Finally, after about a little over a year of searching, and looking at over a 100 houses and condos, we found the one. They are now the proud owners of a four bedroom, two bath, single story home with a large lot (fenced for the dog they hope to adopt), a two car garage and a spa.
That is what Affordability is all about. Simply put, the prices have come down to the point that homebuyers can get more home for the money now than they could a year or two ago. Buyers who were simply not even able to think about home ownership a couple of years ago, may find they can actually afford to purchase a condo. Buyers who have been able to save some money and have been thinking about buying a condo are now pleasantly surprised to find that their dollars will now buy them a home.
So why not wait another year and take advantage of even lower prices? Great question...And, if you know of someone with an accurately operating crystal ball, you can time the market and buy just before it begins to go back up again. In the meantime, we are seeing some signs that indicate the downward trend may be ending. We are beginning to see fewer new listings each month while the sales are increasing each month. It's a case of Economics 101 - simple supply and demand.
If you are considering if this is the right time to buy...96% of economists are forecasting that the economy will make a turn around in Fall of 2010. Home prices rise and fall. It's a well documented cycle. You may want to begin looking at homes now and purchase even while prices are continuing to fall slightly, so you will be positioned to enjoy the rise as prices begin to go up in the upward cycle.
It has been said that no one knows or can accurately predict the precise moment when the market actually hits the bottom. No one rings a bell. We won't actually know when it happens until after it happens. So, the question is what kind of shopper are you? Do you enjoy getting a bargain and buying things when they are plentiful and on sale or do you prefer to pay full retail price? In buying a home or condo would you rather buy that property now while it's on sale or would you rather wait till the market turns around and pay full market price?
If you are thinking this might be the right time to buy or just need to talk with someone who can give you some straight answers without obligation ~ I'd be pleased to give you information without obligation. If you are not looking for information on the Orange County, California home market, I am able to assist you by introducing you to someone in your area who will provide excellent service through my national and international affiliation with Certified Residential Specialists®.
Marlene Bridges, REALTOR®
800 777-1775
Orange County Real Estate Website
Orange County Seniors Lifestyles Blog
SRES - Seniors Real Estate Specialist®
CRS-Certified Residential Specialist®
President - Laguna Hills/Laguna Woods Chamber of Commerce 2007-2009
Marlene is a highly experienced and respected South Orange County CA REALTOR® specializing in residential Real Estate and the sale of Homes and Condos in South Orange County, California and Saddleback Valley cities of: Laguna Woods, Laguna Hills, Laguna Niguel, Laguna Beach, Rancho Santa Margarita, Lake Forest, Dana Point, San Juan Capistrano, San Clemente, Aliso Viejo, Mission Viejo.
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