Best of Times to Buy Property, Worst of Times to Wait
Charles Dickens starts his classic novel “A Tale of Two Cities” with the words “It was the best of times, it was the worst of times” and in some ways it seems we are in exactly that position now with regards to real estate. If you are a seller of a home it is most likely a difficult time. For buyers with steady income and good credit this is arguably the most compelling time to purchase a home in the last decade.
Part of my Real Estate Practice is a focus on the SCGA Golf Course Community in Murrieta, CA. Over the past year or so there have been an inordinate number of bank owned properties in the area with the inevitable brown lawns and vacant homes. Interestingly most of these homes have now sold to new home-buyers and investors. Many of the homes have been re-landscaped and sparkle with optimism and pride of buying a home again. This is good news for the Community at large, although the hard truth is that the bright dreams of new homeowners too often came on the heels of the broken dreams of some fine people who were profoundly affected by dropping real estate prices and a challenged job market. Consider for a moment that in Riverside County the $415,160 peak price of a representative home was reached in January of 2007. In July 2009 the median price had declined to $165,460 for a reduction in price of about 60%
This same general trend has occurred throughout California. As an Independent Real Estate Broker I belong to over 8 Multiple Listing Services throughout the state and this year alone have listed and participated in the sale of over 100 properties from the Desert areas of Indio to million dollar homes in the Bay Area with all stops between. If you are interested in seeing the Peak prices of homes (usually attained in 2006 or 2007) in selected California Counties compared to prices today with an analysis of the percent of change email me at gerrydavidriley@yahoo.com and I will send you a summary table. All areas show decline ranging from “best case” of -32.4% in the Santa Clara region of the state to -67% in the High Desert area.
What Does All This Mean To You?
If you are a buyer call me immediately to take advantage of the great buying opportunity before us. If you are a seller give me a call and I can help you evaluate your options and navigate the murky waters of this confusing time. I have just completed special training in short sale negotiation and have filled my tool box with new knowledge and strategies to serve you even better. I am committed to working shoulder to shoulder with my friends and customers to maximize their welfare. In my next RileyState article I will provide a general discussion and overview of the Short Sale process In many instances a short sale is preferable to foreclosure and may be the light at the end of the tunnel you have been waiting for. Stay tuned for this. If you do not need this information, I assure you someone near and dear to you does and you can be a channel of courage and help for them.
The following news report from the California Association of Realtors provides a timely update for where we find ourselves in California Real Estate today.
C.A.R. reports July sales up 12 percent, prices declined 19.6 percent
“Home sales increased 12 percent in July in California compared with the same period a year ago, while the median price of an existing home declined 19.6 percent, C.A.R. reported yesterday. “The federal tax credit for first-time buyers played a critical role in the purchase decision of many buyers,” said C.A.R. President James Liptak. “Nearly 40 percent of first-time home buyers said they would not have purchased a home if the tax credit was not offered. Because the tax credit has helped so many first-time buyers become homeowners, it is critical that Congress extends the credit beyond the Dec. 1 deadline, and includes all buyers, not just first-timers.”
Closed escrow sales of existing, single-family detached homes in California totaled 553,910 in July at a seasonally adjusted annualized rate. Statewide home resale activity increased 12 percent from the revised 494,390 sales pace recorded in July 2008. Sales in July 2009 increased 8.1 percent compared with the previous month. The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during July 2009 was $285,480, a 19.6 percent decrease from the revised $355,000 median for July 2008, C.A.R. reported. The July 2009 median price rose 3.9 percent compared with June’s $274,740 median price.
“July marked the fifth consecutive month of month-to-month increases in the median price,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “This was the largest increase on record for the month of July based on statistics dating back to 1979.” I hope this information is encouraging to you and serves as a heads-up for sellers as well as a hearty “nudge” to buyers out there. I hope you’ll allow me to represent you as your agent.
Keep the Faith.
Gerry
Tags: buy property, buyers, buying a home, home buyers, property buyers, sellers, short sale
General Posts | Gerry Riley | 
August 26, 2009 9:59 pm | 
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Hi. I am Gerry Riley, how can I assist you with your real estate needs?