Buyers and Investors : Great time to purchase in Santa Maria, CA

Great opportunities do not come along often, and when they do, the wise person looks for opportunities. There is no denying 2008 was a challenging economical year with unprecedented home price decline, tighter credit standard, drop in consumer confidence, official declaration of a recession, unemployment surge, and the list goes on. But the bright spot is affordability housing, historically low interest rates, a buyers market, abundant inventory, and favorable terms from home owners and banks.

In Santa Maria, CA homes prices have declined in some area 40-50% since the market apex in 2005. Not good news for home sellers who have lost equity; an opportunity for buyers who were priced out of the market 3 years ago. A 40%-50% discount or purchasing at .50 cent for the dollar cannot be ignored. In my NE Santa Maria neighborhood, some homes devalued from $570,000 in 2005 to $300,000 in Jan 2009, a 48% drop in less than 3 years.

For example, using estimated numbers, a FHA loan of $200,000 at a current rate of 5.1%, with 3.5% down or $7,000 down, requires approximately $60,000 income. The monthly payment including principal, interest, tax, insurance, and PMI is approximately $1,377. For a $250,000 home at a current rate of 5.1% with 3.5 down or $8,750 down, requires approximately a $73,000 income. The monthly payment including principal, interest, tax, insurance, and PMI is approximately $1723. For many renters, this matches what they are paying for rent. Another plus, FHA credit scores requires 600+ credit range, compared to 700+ credit for standard institutions. Furthermore, if a buyer finds a home, and meets the requirement of a first-time home owner, there is up to $7,500 tax credit.

Home ownership is a viable option for many now. Bargain prices, historically low interest rates, FHA loans requiring 3.5% down, 600+ range credit scores, merits strong consideration. The starting point is getting pre-qualified or pre-approved to see how much home home you can buy. Having stable employment, establishing funds for a down payments, repairing your credit are important ingredients to home ownership. 2009 offers plenty of opportunities since foreclosed and short sales need to work through the inventory before the market stabilizes.

This is a time to think outside the box on how you can get into a home. There are newer homes less than 7 years old, 3 bed, 2 bath 1650 square feet homes in Santa Maria, in the $250,000 range. The opportunity to purchase in the central coast, with very favorable terms is reason to find a professional Realtor who can help you navigate your way to home ownership. Call Cesar today at 805.264.1646. I am ready to help with all your real estate and financial needs.