Buyers Market is back in California!!!

By
Real Estate Broker/Owner with Action Investments and Hawaii Pacific Realty BRE Lic# 01481898

THE BUYERS MARKET IS HERE, LETS OPEN ESCROW!!!

The buyers market is finally here!!!  According to the March 2008 “Housing Market Indicators” published by the Federal Home Loan Mortgage Corp, the inventory of unsold homes in California was 11.6 months, almost a full year.  This is a 52.6% increase from a year ago levels of just 7.6 months.  This large increase in inventory has helped many first time home buyers to now afford to buy.

For example, a condo in Tarzana, Ca that rents for about $1400 per month can now be purchased for around $200,000.  If you have a down-payment of 20%, assuming a 6% interest rate and $160,000 loan amount, gives a payment of $959.28 per month.  This makes leave room for HOA, taxes, insurance, etc all close to the same amount that you would pay in rent.  What a relief to finally see housing affordable again.

Now is the time to take advantage of the buyers market.  Lets take advantage of the choices out there to find that special property.  As a real estate broker, investment property owner, and former retail banker, I am ready to bring all of my knowledge to work for you.  Just email me at jhector@socal.rr.com with your specific real estate criteria and I will respond to you that same day.

 

California Housing Market @ A Glance

Housing Market Indicators

State of California

Reporting Period

Current
Period

Last
Period

Year
Ago

M-to-M
Change from Last Period

Y-to-Y
Change from Year Ago

Existing Home Sales (SAAR)

March 2008

         318,830

         340,580

         422,300

-6.4%

-24.5%

Median Home Price

March 2008

$413,980

$419,640

$582,930

-1.3%

-29.0%

Unsold Inventory Index (months)

March 2008

11.6

14.4

7.6

-19.4%

52.6%

Median Time on Market (days)

March 2008

56.7

69.8

52.9

-18.8%

7.2%

First-Time Buyer Housing Affordability Index (HAI)

2007 Q4

33%

24%

25%

9.0%

8.0%

30-year fixed-rate mortgage (FRM)*

March 2008

5.97%

5.92%

6.16%

0.05%

-0.19%

*SOURCE: Federal Home Loan Mortgage Corp.

 

 

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Posted by

Jason Hector, Real Estate Broker, CA Dept of Real Estate Lic. #01481898
(818) 357-9658 Cell
(866) 791-3290 Fax
jhector@socal.rr.com
www.jasonhector.com
Broker--Action Investments
11630 Seminole Circle
Northridge, CA 91326
(800)-626-6469 Phone
(866)-791-3290 Fax

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Rainmaker
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David Saks
(retired) - Memphis, TN

Good thoughts, Jason. Hopefully, market correction will become more evident in the days to follow in most of our larger metropolitan communities since a buyers market seems to be placing a considerable positive shift in the direction of sales. The antithesis is the declining median home value index. I believe that buying resurgence will ultimately correct the shift and stabilize the existing market condition. Hope your having a fine week.

May 27, 2008 07:53 PM #1
Rainer
20,742
Jason Ian Hector
Action Investments and Hawaii Pacific Realty - Porter Ranch, CA
Real Estate Broker in California and Hawaii

Well said David.  This brings me to the thought of rising commodity prices and inflationary pressure on the dollar.  Real estate is similar to a commodity in that it is a finite resourse in high demand.  Washington Mutual lost 12 1/2% of its value just today.  This to me says that there are many more foreclosures to come than we expect.  This will be a great opportunity for the buyers. 

Jun 06, 2008 10:25 AM #2
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Rainer
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Jason Ian Hector

Real Estate Broker in California and Hawaii
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