Summer 2009 is here and along with the sand, surf and sunshine this year comes some real values in real estate! Our current market conditions have left a lot of people talking about real estate – seems like people never really stop talking about real estate. It is cyclical and that is to be remembered – we’re either talking it heading down or revelling as it heads up. Today’s chatter is usually about how much lower the prices are now then they were a few years ago and thus we have some real values in today’s market. A few years ago it was all about the gain – which brought along with it the lowest affordability index ever. It’s been over a decade since California has seen an affordability index so favorable – it was only 3 years ago that it was in the 26% range (meaning 26% of first time home buyers could afford the average priced home in CA.– now it’s up to 69%.) Federal aid to first time homebuyers has increased to $8000 from $7500 from 2008 to 2009 – so the Feds are obviously trying to ramp things up. The State of California has its own 2009 Tax Credit of $10,000 to a single family home buyer of a home that has never been occupied and that is intended as a principal residence…click here for complete info. They have allocated $100 million dollars to this and at this time of writing they have already closed the application process as they have allocated all the money so far!
Inventories are down and pending sales are up…and Dataquick is reporting the number of California home sales in May are up for the 11th straight month. Here in the Hollywood Riviera there are currently 25 homes in escrow/pending sale compared to only 10 in escrow/pending on May 21, 2009. That’s a big jump in 6 weeks time. The average prices are off a bit, but a great time for buyers and obviously they are thinking so too right now!
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