Friday, April 11, 2008

Not There Yet for Buyers & Sellers

Prices are down, rates are still low, but the only factor which is causing the market to decline is the inability for home-buyers especially first time home-buyers to secure a loan.

The FHA has moved in where the sub-prime market exited the industry last August. Unfortunately, the FHA have moved a little to slow which is causing a rapid price depreciation in the San Fernando Valley.

To help stabilize the real estate market in the San Fernando Valley and prevent further price depreciation, the lending industry and the FHA who insure these loans need to provide affordable fixed loans but also loosen their debt to income ratio allowing buyers to purchase more expensive homes at favorable interest rates. Possibly having a states FHA loan program with 3% down with a minimum credit score of 620 should help stabilize the housing market.

Affordability is definitely getting better but if the money is not readily available to purchase an average priced home here in the San Fernando Valley, then we will continue to see price depreciation across the board and a glut of homes on the market. Keep in mind there is a domino-effect taking place with more expensive homes falling victim to foreclosure and short sale.

The housing downturn is also causing opportunities for ready, willing & able buyers to secure a favorable interest rate and also purchase a home 30-50% off market value. It's common to see buyers write offers up to $100K below asking price.

If you are in the market to purchase a home, the first step is to get you pre-approved with an FHA insured loan. The second step is to visit the sites listed below to search for available bank owned and short sale homes selling at deep discounts.

Links you should bookmark:
San Fernando Valley Bank Owned homes
San Fernando Valley Short Sales

Keep in mind that some sellers are competing with bank owned homes and short sales allowing you to purchase a home directly from the seller at bank owned prices. Visit: http://www.properties.la/ to view all the homes for sale including short sales, pre-foreclosures, bank owned and more!

Written by:
Richard Johnston, RE/MAX OTB Estate
818-730-4128

No comments:

More Links: