Yep, According to all the market indicators NOW is the best time to buy property in California in the past 4 years.
According to financial analysts in the Real Estate market, homes in CA have re-adjusted from 20% - 40%. 
The days of our homes being worth so much more than they 'really' are is over. But, this isn't saying that the declining market trends are finished. A financial analysis firm, Global Insight thinks that we could be below historic norms by the end of this year.
Market indicators show that there are still 21 housing markets (or 6% over all the nation) that are still severly over valued, which includes Madera CA - so don't try and buy there yet! At the peak of 2006 housing bubble - there were 56 overvalued markets. So that shows improvement.
Across the nation, the biggest gains in affordability (that means the biggest drops in home prices) occurred in California, Michigan and Florida. Of course, in contrast to this the most under-valued homes are in Louisiana and Texas.
Based on my own experiences - I have seen homes as low as $1,500 yes - that is One-thousand-Five-hundred-dollars - that are on the market for 6 months before anyone can buy them. Why? I don't really know - the homes appear in average condition.
So, buy the 'dip'... Oh, the best part is the Federal Housing Administration raised the limits on mortgages it guarantees to $729,750 in LA and OC. To get perspective - the previous limit was $362,790. FHA has really attractive 1st time home buyer programs and lower overall rates on mortgages.
The only downside to this whole thing is that you have to have really GOOD credit --why is that a downside? Because most Americans are financially irresponsible; with debt to income ratios that exceed minimum standards to qualify for loans and credit scores in the low 700's (FICO). The national average in 2006 for bankruptcy rates was 360 for every 100,000 population.
Upside - if you want to buy a home this year, stop using credit, pay off your debt, save up a 20% down and buy the home towards the end of the year.
(note to Michelle - notice, no stolen images...)
2 comments:
Best time to buy, and still housing in Cali is way too much to imagine actually owning.
Renter for life baby!! Oh yeah.
Shhhh....don't tell everyone! I'm trying to sneak in before everyone jumps on the banwagon.
Post a Comment