Steven Mogavero
Posted Tue Oct 05 12:00AM
Anyone looking to buy a home in California might feel a bit of urgency after hearing the latest news on sales trends in the state. Sales are up a bit, though not as strong as they could be – but prices are getting hotter by the minute.
The statewide median home price increased 1.2 percent from July and was up 8.6 percent from a year ago, according to a recent report from the California Association of Realtors.
This news, along with the incredibly low interest rates on long-term mortgages should be enough to push anyone off the fence. Sales are still slow enough to offer many buyers a good deal, while the price trend shows strength in our underlying market forces.
Is it a good time to buy in California? My instinct is to say "you bet it is." Market conditions agree. But of course, this is now and always will be a highly personal question with an answer that is unique to the person asking.
Buyers today need to be prepared for a rigorous mortgage process – one that requires reams of documentation, stellar credit and an impressive cash deposit. You'll need to have worked at this for some time (good credit and cash unfortunately don't fall from the sky).
If you're interested in a home in California, don't rule it out, though, if you think you don't qualify. FHA, for example, is still writing mortgages, which don't require as high a downpayment as those made from private lenders.
I urge you to act – though not in haste and not alone. Today's market is perhaps the most confusing time in our industry’s history. But don't view this as an obstacle – view it as a potential opportunity. Real estate is alive and well in the Golden State. But it's murky, slow and full of unexpected twists and turns. Don't risk missing out, though, because it all seems so unfamiliar. Enlist the my help and get the insight you need to navigate these rocky waters.
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I really can't believe that prices are going up already. It seems like houses are selling more but so I don't really understand why prices are going up. That is good for anyone trying to sell their house.
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