HERE’S a bit of good news for a change, for homeowners in California.
More than 22,000 homes sold in Southern California in August, showing a 14 percent increase from a year ago. The median price rose more than 10 percent from about $290,000 to $309,000.
Does this mean prices will shoot straight up? What about all the current homeowners that are upside down, all the homeowners that are delinquent on their mortgages? California still ranks third in the nation in foreclosures, but there are positive signs the housing market is starting to regain some steam.
Inland Empire and Riverside County the demand for existing homes is outpacing the supply. The prices have been hit hard so you can still buy a house in those county for less than 100/sq feet and they give you the land for free.
Multiple offers and bidding wars from cash investors are driving home prices higher but leaving first time buyers left hanging with no accepted offers. You will notice that minimal down payment buyers are having a harder time getting good properties.
If you are a buyer and are serious about a property, you should be prepared to offer more than the asking price.
What might be the cause for all these craziness? It’ s low interest rates. Banks mortgage rates are in the 3 percent range; if you are getting jumbo loans directly from the banks they can offer rates as low as 2 percent on Adjustable mortgages. That is why are the investors are out to buy and lock their rates in for a long time. WE for sure will never see these rates go down this low. GUARANTEED!
The median price for a home in San Bernardino County is $168,000, up by 12 percent from this same time last year. In Riverside County, the median price for a home is $210,000, up 10.5 percent over last year.
Existing homes are not the only ones benefiting from the surge in demand; construction of new homes is also taking off. It’s actually easier for first time buyers to buy new homes because the builders are eager to sell, you might be paying a higher premium but you will get a home.
Homes in California had annual price gains for the eighth month in a row in October, the California Association of Realtors said Thursday. The year-over-year increase was the largest since May 2010.
Sales were particularly robust in the coastal markets and high end, but they also rose significantly in many non-metropolitan areas, as confidence toward the housing market continued to improve.
In the Northern California region, for example, they posted double-digit year-over-year sales gains in October.
California’s housing inventory tightened in October, at a 3.1-month supply, down from 3.7 months in September and 5.5 months in October 2011. The figure represents how long it would take to sell all existing, detached single-family homes in California at the current sales pace. In a normal market, supply is at six to seven months.
With the supply shortage, especially of lower-priced homes, expected to remain an issue in the near future, we will likely see solid year-over-year price gains through the first quarter of next year, as sales of higher-priced homes grow.
In Orange County, the median price in October was at $558,680, up 15 percent from $484,390 a year ago, but down 0.6 percent from September. Sales were up 36 percent year over year and 16.5 percent from September.
DataQuick, which measures all home sales — not just existing, detached, single family homes — reported this week that the median price for an Orange County home was $455,000, up 12 percent from October 2011. County officials recorded 3,148 homes sold, up 40.5 percent from a year ago and the highest number for an October in seven years.
So are you ready to go out and buy a house now! I would think if you have been preparing and saving for a house or an investment. This would be the best time because we are almost sure that the lows of home prices are behind us.
Good luck, be smart and now is the time to be gutsy! Take chances because based of very influential people and very well versed people that I have spoken with. This is definitely the time to buy.
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Thanks for your inquiries and comments. Please call Ken Go of 1st Innovative Finance Group for your refinancing, new home financing, Short Sales inquiries at (562) 508-7048 or write to [email protected].