You came really close to buying that house. It had everything . . . except . . . RIGHT?! Has this happened to you? Everything about that home tour was going great until the agent said “oh don’t forget there’s no AC in this home,” and instantly you were turned off and heading straight for the door! Although central air and air conditioning has become hugely popular amongst home buyers in almost region of the county, you found yourself looking at a home that was missing that one “thing” which killed your deal. Leaving you sidelined again. This months infographic was excellent because as some seasoned homebuyers know, December can be one of the best months of the year to strike a deal. There are a variety of reasons the “December Effect” exists. The bottom line is that motivations to close a deal before year end the December 31st has caused more home buyers to find a deal in the slow, dark days of winter more than any month of the year. Buying or selling, December is NOT the month to get sidelined! As the graphic shows in Box 1, over 60% of home buyers put less than 6% down to close! That reason alone can get any homebuyer off the couch and into this weekends next Open House. Box 3 gives another example of judging a home just by it’s price alone. Because of the “December Effect,” I always recommend homebuyers look at prospective homes regardless of listing price. I know of a seller in Los Angeles that listed a home for more than $2 million as a For Sale by Owner that was offered cash of $900k and a very quick closing. Instead of the seller being insulted or turning away they started negotiating the deal into the low $1 million range with the buyer. Although the deal didn’t go through for other reasons, the point is most buyers would never think that such a low offer would even be considered. And maybe that is true much of the time. But this buyer learned by writing and submitting an offer the sellers motivation was substantial enough to negotiate the deal rather than turn away. Don’t get sidelined this December! The best home buying opportunity of your life could be one Open House away!
Wow big news from Fannie Mae. This could be a political move as we go into the election if mortgage applications have been drying up as of late. Fannie Mae announced this week that it would expand its HomeReady program, which includes 3 percent down payment loans. It is extending the 3 percent down mortgage to eligible refinancers who have loans already owned by Fannie Mae. Fannie Mae’s previous maximum allowable loan-to-value ratio for refinancers was 95 percent. Now, it will be up to 97 percent, under the new guidelines. Read more here—>
Two words alone have, rightly, loomed large in discussions about California’s housing market this year: inventory and affordability. A tight supply of homes available for sale has helped to keep strong upward pressure on home prices, which in turn has caused further deterioration of affordability in the state. As housing becomes more expensive, and the cost of living between expensive central areas and outlying counties expands, people begin to make decisions on the trade-offs between living farther out (and in larger houses) and commuting longer to their jobs. For your next purchase or rental who’s got your back? Subscribe and/or Follow me on Twitter for strategies to navigate the housing market!
Combining resources to acquire real estate sounds great, till you really consider ALL the considerations. I still meet investors who don’t use operating agreements with their partner/friends when flipping homes. This article addresses the “what if’s” in a practical sense.Buying Real Estate with a Buddy
August 2016 breakdown – California sales were down, median prices up = TIGHT SUPPLY! Anyone searching for a new home or searching for a rental keeps hearing this tune over and over; inventories are low. Additionally frustrating purchases might have also been talk of an increase in interest rates by the Fed in the Fall. We have continued to purchase homes at a steady pace but nowhere near our peak three years ago.
June, July and August are considered peak sales months for real estate so it is a surprise that sales cooled in July of this year. As VERY strong demand in rentals persists, this might be an early sign of buying demand weakening by California house consumers.
California real estate moves higher in June. Is the economy getting stronger or is lending getting easier?