Jason Hector

It seems like the people who were on the sidelines are now coming out and buying. A recent foreclosure was listed at $230K a little below market value and received 18 offers within a week. The accepted price, however, was $290K. This goes to show how this strategy of pricing low works well for generating activity and ultimately a higher price for the seller.

For the buyers, it seems like those who continue to wait and expect a further worsening of the housing market may be left behind. The fact that multiple offers are coming in on several of the homes now shows that the competition is fierce here in the Los Angeles and San Fernando Valley area.

According to Southland Regional Association of Realtors, "There were 6,950 active listings throughout the San Fernando Valley at the end of July, down 3.4 percent from a year ago. Of that total, single-family homes accounted for 75 percent of the active listings. At the current pace of sales, the active inventory represents a 7.5-month supply - slightly higher than the 5- to 6-month supply deemed to represent a balanced market.

By comparison, the inventory during the recession of the 1990s hit a record high of 14,976 in July 1992 and the inventory compared to pace of sales was three-times higher at a 23-month supply. Contrary to an inaccurate public perception, the active inventory in the San Fernando Valley has been trending lower since November 2007 when it stood at 7,505."

This reminds me of Economics 101...supply and demand equilibrium or efficient market theory. I believe that we have at least found some equilibrium or at least the return of an efficient market. Great news for everyone!!!

However, everyone wants to know..."Have we reached the bottom yet???"

What a great help this tax credit will be for buyers who are having difficulty affording their first home. With all the headlines about the so called credit crisis, it is nice to see that there are incentives being put in place for first time homebuyers.

The Housing Stimulus Bill is offering a $7500 tax credit that would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan)

Combine this tax credit with the current down payment assistance programs available in Los Angeles, Orange and Ventura Counties to get 100% financing and upto a $7500 tax credit. Let's spread the word.

THE BUYERS MARKET IS HERE, LETS OPEN ESCROW!!!

The buyers market is finally here!!! According to the March 2008 “Housing Market Indicators” published by the Federal Home Loan Mortgage Corp, the inventory of unsold homes in California was 11.6 months, almost a full year. This is a 52.6% increase from a year ago levels of just 7.6 months. This large increase in inventory has helped many first time home buyers to now afford to buy.

For example, a condo in Tarzana, Ca that rents for about $1400 per month can now be purchased for around $200,000. If you have a down-payment of 20%, assuming a 6% interest rate and $160,000 loan amount, gives a payment of $959.28 per month. This makes leave room for HOA, taxes, insurance, etc all close to the same amount that you would pay in rent. What a relief to finally see housing affordable again.

Now is the time to take advantage of the buyers market. Lets take advantage of the choices out there to find that special property. As a real estate broker, investment property owner, and former retail banker, I am ready to bring all of my knowledge to work for you. Just email me at jhector@socal.rr.com with your specific real estate criteria and I will respond to you that same day.

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Good news to first time home buyers in California, especially the Los Angeles area.

Cal HFA (California Housing Finance Agency) has 100% Financing for a 30 year fixed with downpayment assistance available!!!

(CHDAP) California Homebuyer's Downpayment Assistance Program now offers 3% towards down payment or closing costs.

The funding comes from the State of California through the issuance of revenue bonds.

Please contact me at 818-357-9658 for details on the qualifications.

Thank you for reading my blog and I appreciate any comments. Thanks Jason