The changes in the real estate markets, throughout California, have been one of the biggest news stories in recent months. The news reports slowing sales and rising inventory, but prices still rising year over year. Home prices are indeed higher than a year ago but peaked in May and have softened since then.
What the experts are not predicting however, is a crash. They all agree that this slow down will not be a repeat of 2008. Homeowners in Northern California as well as Southern California have lots of equity and have legitimately qualified for their home loans. We don’t have any of the crazy lending we had leading up to the 2008 mortgage crash. Because most Homeowners refinanced at great rates, they have lower monthly payments too.
What we are seeing is an increase in inventory with homes staying on the market longer and asking prices adjusting from the aspirational prices that Homeowners hoped to achieve in the past couple of years.
Homebuyers are seeing new opportunities with more homes to choose from, and Sellers are willing to make more repairs.
The best advice to Buyers who are hoping to purchase a home in some of the hottest California Markets, such as the Bay Area Peninsula counties, Sonoma County, Orange County and others, is to assess how long they plan to live in their new home. With an historical 8% inflation rate, we see home values moving up over time. If a Buyer finds a home that fits their needs and they are comfortable with the payment, they shouldn’t be concerned if home prices dip a little as long as they are higher when they go to sell.
If you or your client, have been turned down for a conventional or traditional loan, you may want to give us a call here at Sun Pacific Mortgage & Real Estate – also known as The Guys in the White Hats: 707-523-2099 or visit our website at www.sunpacificmortgage.com. We are family owned & operated and have been providing fast, cash-like mortgages for over 34 years in California. We specialize in owner-occupied mortgages which have become more difficult to obtain recently.