Obstacles in real estate? We've got plenty of them! What profession doesn't have obstacles? They just change from time to time, season to season. We saw homes sales plummet last year and with it, the doom and gloom of the media. Well... let's take a look at the numbers now. April's sales report for California was just released and, from what I see, sales are up.
According to the California Association of Realtors, overall in California, homes sales in April increased 49.2 percent. Earlier reports related the fact that over 50% of these sales are attributed to first-time buyers.
Unsold inventory decreased in homes with prices ranging up to $750,000, falling between 3-6 months. Last year this price range was falling between 8-10 months out. Pricing between $750-$1,000,000 shows unsold inventory close to the same time frame as last year which is approximately 9 months. Over $1,000,000+ is where we see a drastic difference. Last year our unsold inventory was out approx. 11 months. This year it is sitting at approx. 18 months. So, it seems the 1,000,000+ priced market is taking the hit for the lack of good loan products and the downturn of the economy.
Locally speaking, here in Ventura County, while we read the median home price decreased last month overall in California by 36.5 percent, we see the number to be a 8.1 percent increase for this area. This could be due to the fact that there are less homes on the market now for buyer's to choose from and multiple offers on properties are beginning to force buyers to offer more to beat other buyer's to the property. The median price in Ventura County as of April 2009 is $394,540. It was $364,920 in March.
Entry-level housing affordability has reached 69 percent overall in California. Ventura County is reporting the local affordability index to be 65%. This is a huge improvement to the 45% from the first quarter of 2008. Many first-time buyers are taking advantage of the incredibly low interest rates and deflated home pricing. This is truly a fantastic time to jump into the market!