Sales of single-family detached homes in California for the month of July brought mixed results. They dropped by 4.1% from the prior month, however, they rose by 4.5% as compared to July of 2010. So on a month-to-month basis we saw a slowdown, but on an annual basis we saw increased activity. Figures weren’t any better for new homes as this year’s sales pace is on a path that, if it continues, would be the worst year in nearly 50 years!
The pull back is largely contributed to the roller-coaster ride that is the economy. With mortgage rates at historical lows, you would think that people would be rushing out to purchase their dream home or investment property. But uncertainty in the stock market, job security and our government’s competency are keeping even the most qualified and stable potential home buyers on the sidelines.
People seem to be more in favor of saving their hard earned money rather than spending it on a down payment for a home. What many people don’t realize is that there are many programs out there for home buyers that will allow them to put little money down and still be able to purchase a quality home that they can afford, usually at about the same monthly cost as their current rent.
Low home prices plus low mortgage rates equals great opportunity to purchase real estate. Another reason to make a move and purchase a home, those of you that will need to obtain a jumbo loan, will have greater difficulty achieving that come October 1st. That’s when Fannie Mae and Freddie Mac high cost loan limits that were raised in 2008 will expire and revert back to their lower levels. If you live in San Luis Obispo County and need a loan over $561,200, it will be more costly and more difficult to purchase a home.
Zachary S. Johnson, REALTOR, www.805realestate.com
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