Tag Archives: first time home buyer

Now is the Time to Buy!

Home Market is RecoveringBuyers Market is Now!

Hard-hit areas, such as Sacramento, Las Vegas, parts of Florida and California’s Inland Empire, appear to be among the first cities in the nation to reach the early stages of recovery, as investors and first-time buyers compete for bargain-priced foreclosures and short sales.

·       By some indications, the market could be close to a bottom.  Pending home sales – homes that are under contract, but have not yet closed – and construction spending rose in March 2009.

·       When a market reaches bottom, foreclosures usually stop piling up and banks become more willing to issue loans, confident that the collateral backing them will not continue to decrease in value.

·       The first-time home buyer tax credits from the federal and state governments, coupled with favorable home prices and near record-low interest rates, led to an increase in home sales in March.  Sales of existing, single-family homes rose 63.8 percent in March compared with the prior year.   Monterey County reported a sales increase of 248.7 percent and the High Desert region saw sales increase 172.7 percent compared with last year, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

·       The median price for the state also increased in March, rising 2.2 percent in month-to-month comparisons.  March marked the first monthly increase since August 2007, while the statewide median price has remained in the $250,000 range for the past three months.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

House hunting? It’s not a buyer’s market everywhere

CB104916Some potential home buyers, especially first-time buyers, may be misinformed about today’s market, believing that all sellers are desperate and will accept any offer. However, in many desirable, middle-class neighborhoods, bidding wars are prominent and buyers often have to make offers slightly above the asking price.

• Although California’s median home price – the price point where half of the homes sold for higher and half for lower — was 39 percent lower in March than a year ago, many of the sales taking place are in areas, such as the Central Valley and the Inland Empire (Riverside and San Bernardino counties), which have higher foreclosure rates. These regions offer home buyers better opportunities to purchase homes at extremely low prices.

• The California housing market is often characterized as having three pricing segments: under $500,000, $500,000 to $1 million, and more than $1 million. Homes in the under-$500,000 segment have accounted for the majority of the state’s price declines thus far.

• As real estate is local, a home in one neighborhood with the same square footage and amenities may not sell for the same price as a comparable home in a neighborhood one mile away. By working with a REALTOR® familiar with a specific area, home buyers should be able to submit reasonable offers that are more likely to receive seller approval.

Read this Story

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

 

Certified Distressed Property Expert

Home Ownership Becoming More Appealing Than Renting

Home Ownership is finally becoming more affordable than renting.

Rent versus own– that is the question…

First time home buyers

Declining home prices are helping to close the gap between the costs of renting versus the cost of owning a home, making home ownership more appealing and affordable in many metropolitan markets.

·     Historically, after-tax mortgage payments have averaged 26 percent more than rent payments, according to Greet Street Advisers.  At the peak of the current real estate cycle, mortgage payments reached as high as 66 percent more than rent payments.  However, by the end of 2008, mortgage payments averaged just 24 percent more than rent payments, the narrowest gap since 2001.

·      In Los Angeles, mortgage payments averaged 60 percent more than rent payments between 1990 and 2008, but have since fallen to only 30 percent more than rent payments.

·      Some economists predict mortgage rates could fall to 4.5 percent, which could push mortgage payments to an average of 14 percent more than rent payments, a level last reached in 1998.

·      In some markets, well-qualified home buyers are finding that they can pay less for a mortgage payment than they spend on rent.

·      Although mortgage payments in some areas may be slightly higher than rent payments, the long-term benefits of home ownership outweigh the costs.  Homeowners can deduct the interest they pay annually on their mortgage.

·      Additionally, homeowners can build up equity in their homes over the long term. Historically, homeowners who remain in their homes for at least five years have an average annual rate of return of nearly 12 percent.

·      Unlike rent payments, a mortgage can be paid off, enabling the homeowner to live in a house free and clear.

To read the full story, please click here

 For more articles:

New Home Buyer Fence Sitters may Lose out to Market

Snag a Deal on a Short Sale

Questions on the 8,000 Federal Tax Credit

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Certified Distressed Property Expert

7.5 million homeowners “underwater” Ask your lender for assistance now

Ask lender for mortage assistance and latest programs to get help

Home Owners are Underwater!

According to some estimates as many as 12 million borrowers may have negative equity in their home, meaning that they owe more on their mortgage loans than their homes are currently worth. However, according to statistics gathered by C.A.R. over the last 40 years, homeowners who purchase a house and keep it for at least five years have an average annual rate of return of nearly 12 percent.

Although California’s inventory of homes with high negative equity is higher compared with other states, lower home prices have increased affordability, making it easier for first-time home buyers to enter the market and others buyers to move up to larger houses or more desirable neighborhoods.

Borrowers who are facing foreclosure should work with their lender and apply for a loan modification program. Many financial institutions are offering homeowners the opportunity to rewrite an adjustable-rate mortgage into one that is fixed for 30 years. Some banks also are offering existing customers zero interest for a short period of time and lowering the principle balance on the loan to make payments more affordable. Call you lender to see if they will work with you. If you can not afford your mortgage anymore, contact your local short sale specialist who may be able to help you avoid foreclosure.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area