Are We Back at Year 2000 Housing Prices in the Imperial Valley?
Recently Frederic Din, REALTOR® and “Your Imperial Valley Housing Specialist” reviewed that average and median housing sale prices were down 25.7% in 2009 from 2008 housing sale prices for the areas of Brawley 92227, Calexico 92231, Calipatria 92233, El Centro 92243, Heber 92249, Holtville 92250, Imperial 92251, Seeley 92273, Westmorland 92281, and other surrounding areas. You can search homes for sale by clicking on the city links above for the areas you want to buy.
These stark facts indicate further decline in median housing sales prices in 2010 even though real estate inventory seems to be dropping. There are concerns in the industry, both locally and nationally of shadow inventory (homes foreclosed but not yet on the market for sale), negative equity (owing more on your mortgage the value of your home), and the ability to move loan modifications forward will all have an impact on further housing sales price declines.
“The good news is for home buyers, whether you’re a first timer, wanting to trade-up, or an investor, current home prices in Imperial County are certainly attractive”, says Frederic.
What makes this year particularly more attractive than the possibility of year 2000 sales prices is low rate fixed term mortgage financing. Home loan rates are often seen in the upper 4% range, while average mortgages rates are hovering around 5.25% for a 30 year FHA mortgage with as little as ½% down.
Contrast these rates to the year 2000 where they were about 3% higher in the 8% range for those with excellent credit histories. FHA loans were available at the same rates however FHA loan limits were stuck just around $100,000, while median prices were slightly higher than that at the time.
“All this means is 2010 is going to be very attractive to buyers due to excellent deals with low home prices and low fixed rate mortgage financing, leading to a more stable and affordable housing market which is on the way to recovery here in the Imperial County”, says Frederic Din.
Another factor that makes 2010 a better home buying year than 2000 is the types of properties on the market that were simply not available 10 years ago. “Scores of homes were built during a period of years from 2003-2007 which were simply not around in the year 2000, these homes include some very nice entry level floor plans and some elegant luxury type housing products there weren’t around then”, says Frederic.
So just how more affordable are homes in today’s low fixed rate mortgage market? For example, in the year 2000 a home with a loan amount of $130,000 at 8% for 30 years with taxes and insurance would be about $1104.00 per month, while today a home with a loan amount of $130,000 at 5% for 30 years with taxes and insurance would be under $850.00 per month, a difference of $250.00 per month.
Let me put this in perspective, for the same monthly payment you were able buy a home in year 2000, in today’s low rate market, with the same monthly payment you could obtain a home loan of $170,000, meaning a newer home and larger home of your choice. Remember, these interest rates are examples and can vary depending on your situation, please consult with your loan officer or ask me for a recommendation to help you get started on making 2010 your year to be a homeowner.
Although high unemployment typically dominates the news regarding Imperial County, the El Centro, California MSA is the statistical area to watch, currently at 29.2%. Jobs which unemployment runs the highest is within the unskilled labor markets, are low wage and often times entry level positions. There is growth in the higher skilled and trained positions which provide higher paying jobs will continue to offer those moving to the Imperial Valley for industries such as renewal energy, geothermal, business, law enforcement, education and government positions just to name a few.
What do jobs and unemployment have to do with the housing market and home sales prices? Frederic Din says “Everything!” A vibrant jobs market bolsters, grows, and sustains the housing market and home value appreciation in a very big way”, Frederic continues. “Plainly put, a lack of jobs causes real estate values to become depressed and decline.”
While the Imperial Valley is far from a full economic recovery at this time, great strides are being made to promote the Valley, encourage investment, and move this great area forward faster. Green technologies, renewable energy here in the Imperial Valley are the forefront of being a highly desirable and sought after industry locally as new geothermal, solar energy farms, and wind farm projects are slated on city council meetings on a regular basis.
Growth in the renewable energy sector certainly looks promising and will bring a much needed economic and employment boost to the Imperial Valley jobs market as well the housing market will benefit greatly from these advancements, which ultimately has an effect on housing sales prices rising.
If you’re new to the Imperial County area or are considering moving here due to a job transfer or relocation to any city in the Valley such as Brawley, Calexico, Calipatria, El Centro, Heber, Holtville, Imperial, or surrounding areas, contact Frederic Din, Imperial Valley MLS Board of REALTOR® as Your Imperial Valley Housing Specialist to help you find the right home at the right price.
Feel free to call my cell phone 619-241-4415 or email me fred@ivforeclosures.com at any time to discuss your home buying needs. I look forward to meeting you and helping you buy your home in the Imperial Valley and call it home.
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Diane O and Friends - Benchmark Realty - Franklin, TN
Greater Nashville Real Estate
Fred,
Yes, the prices are lower here in Middle TN as in your area, but we are at 2004 levels. We just have to convince our sellers that yes they will be taking a hit on their sale, but they can get so much more on the buying end....plus they may also be eligible for the tax credit.
Jan 26, 2010 07:24 AM
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