BEST TIME TO BUY A HOME IN OVER 4 YEARS.
I am a realtor in San Diego, California and it is amazing to see how home prices have been falling over the past two years. And i quote an article from the California Association of Realtors:
- · More than 88 percent of 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007, according to bank National City Corp. and financial analysis firm Global Insight.
- · The survey covered home valuations during the last quarter of 2007, but there's reason to believe that valuations are even more favorable for buyers today, according to the authors of the report.
- · The biggest gains in affordability occurred in California, Michigan and Florida, which are areas that also have been some of the hardest hit by foreclosures. Those states registered 43 of the 50 biggest price declines.
the report compares actual median home prices with what the authors determine are proper home values based on population density, relative income levels and interest rates, as well as historically observed market premiums or discounts, to determine whether markets are over or under valued.
The report also factors in market intangibles that make some areas more desirable places to live, and more expensive.
The survey covered home valuations during the last three months of 2007, but DeKaser pointed out there's reason to believe that valuations are even more favorable for buyers today.
Price declines have continued into 2008 and interest rates, although they have inched up lately, have been steady or lower compared to late last year. There have even been wage gains; personal income rose 0.5% in December. Soaring foreclosure rates have added inventory to many housing markets, depressing home prices further.
The biggest gains in affordability occurred in California, Michigan and Florida, which are areas that have also been some of the hardest hit by foreclosures. Those states registered 43 of the 50 biggest price declines.
So if you were thinking of buying, you might to act on this. I have a great real estate web site to help you get familar with my area, San Diego County. http://www.encinitasproperties.net , or you can call me at (877) 500-1099 toll free 24 hours a day.
Hopefully this has helped a few understand what the market has been changing to a buyers market.
Thanks for listening....Catherine Barden, Your Real Estate Consultant for Life.