How is "Home Afford-Ability" coming? Is it getting to be time to start to unhinge yourself and get out there with a qualified Realtor and see what the market is offering? Where is the true market bottom for Real Estate? If you are renting is it time to start to get moving to home ownership? No matter what the media frenzy and what you are hearing about the market and its relationship with home prices, there is one thing for certain; prices have not been at these levels in years.
With the prices of homes reducing in most of the, even once booming areas, it has been reported that the percentage of California households that can afford to finance their first home increased in the last 3 months of 2007 when compared to the same three month period just a year earlier.
This is a calculation that is based on afford-ability that concerns itself with the minimum household income required to make the 10 percent down payment and to obtain an adjustable interest rate loan at a bit over 6 and a quarter percent. Having said this - Those adjustable rate mortgages, I suppose they have their place, but they have proven to not be very user friendly. I personally like the 30 year fixed, I don’t even mind the interest only. But when you get into a lenders office and they start to talk about adjustable rate mortgages I would hope that the hair on the back of your neck stands up. Or in my case the hair in my mustache. We are not lenders, but I do want to look at the product that they are offering you. You are our clients, you choose us to find you a home, it is important that we take care of that relationship and treat you as if we are family and wants what is best for you and yours. That is how we work.
So when you look at the numbers approximately thirty-three percent of the households in the state of California met the ability to make the 10% down payment and obtain the loan that was spoken about at just over 6% with the adjustable rate mortgage.
As a buyer what do you need to earn to be able to finance $411K? - The estimate reveals that you should be in the ballpark of $80K a year. These are raw numbers and will depend on a lot of factors. If you are a first time buyer do yourself a favor and give us about 40 minutes of your time so we can cover all of the bases. Knowledge is power and together we can get you to have a good experience with no regrets two or three years into home ownership. Where is the $411K figure coming from - that is what is reported to be a typical state of California wide price for the entry level home during this quarter.
You payment would be around $2740.00 a month and that would include taxes and insurance (that’s called impounding). Call us to get in so we can give you a buyers presentation that will have all your questions answered - 661.400.1720(Connor).
The Antelope Valley was the most affordable area of California during the time period that involved the same quarter. There 54% of households met the California’s Association of Realtors $43,800 annual figure that related to annual income threshold to finance an "first-time" buyer home priced in the neighborhood of $218,880.
Where was the next location? One needed to move to Sacramento County with 53% of households that fit within those parameters or income to be able to afford a home at $252K.
Here was a shock, the more expensive an area, the less percentage of households that can afford those homes. That is why we do our best to keep you posted with the "good deals" with our constant updates that are populated with Foreclosures and other types of Distressed Properties.
Back to Los Angeles County - here we had about 27% of households that earned the $86K a year to purchase a home priced at $433K. It was not too long ago if you were breathing and had a OK credit rating. You could have afforded to purchase a home at almost any price. I should reiterate that last statement, it is not that you could have afforded - It is that you could have been approved for a home at almost any price. The loan constraints were no where near the level they are now. It is also very important that you are very well versed in what programs are out there for the first time buyers and those that are working in different professions. You would be surprised to see that the FHA product is back in action and providing some very nice loans. Including a 100% loan is the seller is in agreement to pay 6% towards the buyers closing costs. That is not a type-o, that is 100% financing folks. I have seen this done through some of the local lenders that we have on our list and it works. For the "savvy" it is structured with asking the seller for the 3% from the seller in the normal closing costs to be paid and another 3% in down payment assistance through the "heart" program. Although I am beating a dead horse, we do not do loans, but we can help guide your shot.
When it came to Riverside and San Bernardino Counties, they have been hit quite hard by the rise in foreclosures and declining home values, there the numbers were reflecting that 46% of households earned the $57.6K a year that is enough to finance a $287K home.
Moving to one of our most favorite places in the world, In the San Francisco Bay area, we are back down to only 23% of households reporting income of at least $132.3K - which is pretty good but not for the more expensive areas. That would be the minimum amount earned that would get you in the ball-park to purchase a home in the arena of $660K. So it is true they are not making any more land. The last trip we took there there are going up, higher towards the sky! Gotta Love those more densely populated areas.
So to recap, if you can find properties that are priced right with 5% or 10% built into them in this market, where they are below comp value, then you have something to ponder. However, the more the target properties are depressed the less "fat" there really is. Banks are holding out and seemingly getting their way. So we have to balance this very carefully. Here is the way it is going from someone (ME) that is calling other agents, and writing offers, and competing against other buyers that want properties. It seems to be moving. When you have a property priced right, you have multiple offers. You have what is called highest and best with regards to Foreclosures and the REO (Bank Owned Properties).
Highest will net the bank more money - Best is the buyers ability to purchase (down payment - credit rating - earnest monies - credit score etc.). So when we are writing offers we do out best to find out the true "skinny" on what is going on with the other end of the deal. We do the negotiation and ensure that you are getting the true "filtered" information from the other agent. If I call on a property that you have seen on line and like and the other agent tells me that he has had 5 calls from people that are going to be writing offers, that is part of the stuff that I will "filter". I don’t want you to be influenced by something that I have experienced to be a ploy to get me to get you motivated without reason. If there is an offer in hand - I will relay that tid bit of information to you with a word of caution - It is hard to believe someone on the other end of a phone, so I will give you that "precursory-warning", for the simple reason that I cannot verify that information at that point. But you don’t have to worry I have your back covered. -CONNOR with HONOR
If you are looking for foreclosure properties look no further. We are full members with full Multiple Listing Service Access to 4 (four) boards of Realtors across the Southland. Just click on the one the highlighted blue links below to check out some of the foreclosure and distressed real estate property search engines that I have put together. If you see anything that is of interest give me a yell and I will re-con it for you.
For the Antelope Valley Foreclosures and Distressed Properties Click Here.
I am still working on "The MLS" from the Greater Los Angeles Board of Realtors, and that Foreclosure and distressed property search engine. Please check back often I try to get something posted each and everyday because together we can do this Real Estate thing!
Click here to search on your own
All Properties that are Listed for
Sale - Distressed or Not!
