Housing Numbers Keep Getting better but always remember that real estate is local. There are different things going on in different neighborhoods so having someone that is knowledgeable and that you trust help advise you is critical to buying or selling well.
New Home Sales Are Up 9.6 Percent in July (vol. 433,000) - good news!
The reasons could be as follows:
First Time Home buyer tax credit
In California there is a 10,000 dollar tax credit for buyers of new homes.
A buyer of a new home in California could, if they qualify, take advantage of both credits.
Builders have been giving incentives to buyers such as upgraded appliances, financing, etc
Affordability has increased due to price and loan rates
But with all this good news there are still struggles in the market.
Obtaining jumbo loans continues to be a challenge for most buyers and this has greatly affected homes values in areas with homes over 1 million dollars.
New Appraisal Guidelines are further complicating closings when "out of area" appraisers try to calculate home values and/or because of the new requirements.
The tax credit for first-time buyers may expire the end of November
Many Adjustable mortgages are due to reset soon
More foreclosures are waiting to come to market (shadow inventory)
Commercial real estate showing serious signs of trouble
Unemployment keeps rising
But Let's End On A Good Note:
I am working with a few buyers on the West side of Los Angeles and we have lost out on many properties because of bidding wars! Yes, buyers are buying and making offers in good locations and on properties that are priced well. Those Sellers that get their home priced right SELL THEIR HOME and most often, have a choice of whom they will sell it to. Remember, getting a loan is difficult so you want the most qualified buyer!
If you have any questions or comments please send me an email of give me a call.
Connie
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