Affordable home prices, tax credits for home buyers, historically low interest rates, and a large number of distressed properties prompted many first-time home buyers to enter the market in 2009, according to C.A.R.’s 2009-2010 “State of the California Housing Market” report released today.
California’s median home price hit bottom in February 2009 at $245,170. Since then, the median home price has increased steadily in month-to-month comparisons, but remained below 2008 levels throughout 2009. The annual median price is projected to increase to $280,000 in 2010 from $271,000 in 2009.
Homes priced $500,000 or less dominated the sales mix throughout 2008 and early 2009, but peaked at 85 percent in January 2009. Meanwhile, the market share of homes sold for more than $500,000 increased from 15 percent in January 2009 to 25 percent in July 2009, holding steady around that figure for the remainder of last year.
So if you are thinking of buying, what’s stopping you? Contact me and I can show you your next step, why wait any longer?
Home inspections have proved to be an important part of the home buying process. It helps prevent surprises and potential expensive problems. Therefore, it’s important to know what to expect.
When the inspector checks the outside of the house, they will be looking for the following things: drainage conditions, roof, chimney, and more. Inside the house they will examine: doors, windows, plumbing, electrical, appliances, heating system and water heater. They will also crawl under the house and up in the attic as well.
The home inspector will provide a detailed report (about 30 pages) regarding the condition of the home. They might even recommend what steps to take to correct an issue.
A typical home inspection will cost approx $400. And it’s well worth the money, because it can save you thousands of dollars in possible problems.
~ Barry Ripp
California’s “Unsold Inventory Index” (UII), a closely watched index indicating the number of months needed todeplete the supply of homes on the market at the current sales rate, declined to 3.8 months in December, the lowest level in five years, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). By comparison, the UII for existing, single-family homes stood at 5.6 months in December 2008.
In December, the median price of an existing, single-family home rose to $306,820, an 8.4% rise from Dec.’08, the second consecutive year-over-year increase, and the 10th straight month-over-month increase, according to C.A.R.’s December sales and price report.
With affordability near-historic highs, low interest rates, and home buyer tax credits, many properties in California are receiving multiple offers and sparking bidding wars. Home buyers who find themselves in bidding wars should work closely with their REALTOR® to ensure they are crafting realistic offers that are more likely to be accepted by the seller.
Governor Proposes $10K home buyer Tax Credit: During his final “state of the State” speech on Wednesday Jan. 6, Governor Schwarzenegger proposed a state income tax credit of $10,000 for first-time home buyers. The proposal would expand the tax credit for those purchasing newly constructed homes to include the purchase of existing homes by first-time home buyers.
For more information, contact me.
~ Barry
It’s hard to believe, but between Thanksgiving and New Year’s Day Americans throw away a million extra tons of garbage each week. Here are some suggestions of ways to go green this holiday season, and you just might save some green in the meantime.
Start with your gift giving. Giving an experience, like tickets to a movie or ballgame can create much less waste than toys and gadgets. And some of the best gifts can be homemade like cookies and cakes.
As you do begin wrapping up those presents for family and friends, consider reusing gift bags, tissue paper, and bows.
If you need to ship your presents this year, avoid Styrofoam packing peanuts and try using crumpled up newspaper instead.
As you search for that perfect tree, keep in mind that if you purchase a tree from a tree farm you’re not damaging forests. Artificial trees are also a good choice since they are reused every year and that saves on the gas you would use driving to the tree farms.
If you’re buying lights, be sure to purchase Christmas lights made with light-emitting diodes, or LEDs. These lights have been around a few years and are 90% more efficient than traditional Christmas lights. They also last longer.
And start the New Year off on the right foot try treecycling. By recycling your fresh tree you can make a huge difference in reducing holiday waste. Instead of ending up in a landfill, Christmas trees can be ground into wood chips and be reused as mulch gardens, or to prevent erosion.
And remember….have a very Merry Christmas
Great news for your first-time buyers: The Mortgage Protection Program has been extended through 2010.
To continue to provide first-time home buyers with peace of mind when purchasing their first home, the C.A.R. Housing Affordability Fund has extended the Mortgage Protection Program (MPP) through December 2010. To date, more than 1,700 first-time home buyers already have been approved for the program, and the numbers continue to increase.
On April 2, 2009 the Housing Affordability Fund launched a new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations. Qualifying buyers can receive up to $1,500 a month for up to six months in the event of job loss, a qualified co-buyer can also receive a $750 benefit for up to six months to help pay the mortgage.
TO QUALIFY FOR THE MORTGAGE PROTECTION PROGRAM APPLICANTS MUST:
· Be a first-time home buyer – someone who has not owned property in the last three years
· Open escrow on or after April 2, 2009
· Use a California REALTOR® in the transaction
· Purchase the property in California
· Be a W-2 employee (cannot be self-employed)
This is a great opportunity for first-time homebuyers.Contact me for more information or: Click here for more information, requirements, and a downloadable application.
~ Barry Ripp
Information obtained by the Calif.Assoc.of Realtors. November 2009
Great news coming regarding the home buyer tax credit. The Senate has now agreed to extend the tax credit. The bill must be voted on and then go through the House of Representatives next. But most of us are certain it will pass before the current deadline.
As you can imagine, many buyers are looking forward to that tax credit, and many are rushing to make their home purchase before the current deadline. It has definitely helped our real estate market. But I truly feel we are at the bottom of this real estate cycle right now. Home prices should stay flat for a while, 18 months to 2 years, before we see significant increases.
For more information, or your comments, please respond.
~ Barry Ripp
Selling real estate since 1985
