There are likely more months ahead of gradually falling home prices & stricter loan requirements. However, for qualified home buyers, the low interest rates, large home selection and considerably reduced home prices are providing some remarkable opportunities.
In Ventura County over the last 12 months, home prices have fallen 38%! Homes are selling at an average of 97% of list price, when they are priced near market average. This is a strong sign of the beginnings of market recovery.
There are some rather compelling indicators from a variety of sources that indicate continued positive pressures on our markets since the start of the year. Anything being offered for sale for less than $500,000 and especially in the $350,000 and below range is being snapped up by investors and first time home buyers.It is not unusual for me to call a listing agent for my clients and be told there are 20 to 25 offers!
This is like the market 3 years ago but in reverse.
Prices have fallen so far that first time buyers are jumping at the opportunity to realize their home ownership dream.At the same time, investors are snapping up homes with all cash offers making it very difficult for many first time buyers to compete. Their frustration is that list prices are in their price range, but competition from investors and austere bank terms drive the actual sale prices much higher.
There are still a number of banks that have not figured out that a short sale is an opportunity for them to cut their losses. Some of these banks take 8 to 10 months to approve these short sales and consequently they loose numerous deals from frustrated and impatient buyers. Often a buyer waits months for bank approval of short sale, only to have the bank foreclose on the property and auction it off for many thousands less than their offer! It makes no sense and can't be predicted.
First time home buyers need to take a hard look at their needs and be realistic about the cost of home ownership. You simply cannot low ball a listing with a reasonable expectation of success now. The market is much more competitive than a year ago. The days of offering $50,000 less than market average for a home are coming to an end.
Your realtor should be doing a Comparative Market Analysis on any home you want to make an offer on.Once you know the market value of the home, make an offer based on the market price. If you have taken the time to be pre-approved with a lender, you'll know already if this home makes financial sense.
Be prepared to negotiate and expect competition! If you cannot be flexible in price and terms, this market will be extremely difficult for you. A take it or leave it attitude will not serve a buyer well either, and many folks have lost wonderful opportunities for home ownership for the sake of a few dollars.
One rule of thumb to keep in mind is: for every $1,000 you borrow for a home, it increases your mortgage cost by about $7 to $8 dollars. Develop your buying strategy, negotiate price and terms based on market price, be pre-approved with your lender, and beware of short sales. Be flexible and have a backup plan.
Let your real estate professional guide you through the 30 pages of the offer process and handle all the followup escrow details. Expect them to schedule and track all the inspection, termite, and home repair and home warranty details for you and to provide you with experience based guidance for a successful transaction.
You can buy a home for a lower price than we have seen in many years.
You are invited to explore the latest in Video Real Estate News and Information at http://www.RealtyTimes.com/REUv/MarkThorngren. Produced and updated daily, it provides comprehensive upbeat information on the latest developments in our fast changing market.
ZIP Code: 93010
Approximate Location Boundaries: Camarillo straddles the 101 highway West of Thousand Oaks/Newbury park and East of Oxnard. Stick a pin on a roadmap showing the 101 between LA and Santa Barbara and Camarillo will be right in the middle.
Location Characteristics: Mild Mediterranean Climate year round. Excellent schools and 20 minutes from the beach. No smog, great shopping and friendly small town feel. Camarillo is a showpiece for Ventura County. A very upscale town of 63,000 people, with summer "Concerts in the Park", Frequent community events and celebrations, this town has an abundance of attractions.
LA is an hour South and separated by a mountain range. Beach and harbor activities are available within a few minutes drive for boaters, swimmers, divers or a romantic dining experience at one of our many premium restaurants.
Camarillo has it's own premium outlet mall for upscale shopping at discount prices. Hiking, horseback riding, off-road biking, ATV exploring and fishing are all within an hours drive at scores of State Parks and National Recreation Areas. Take a boat trip out to the Channel Islands for a unique camping or hiking experience, or observe the twice a year dolphin and whale migration back and forth to Mexico.
Visit http://www.markthorngren.com/ for access to local home searches, more blogs, listings, real estate reports, and many to local schools, churches and city resources.
It's important that you know, that I do have time for you, your family, friends and business associates who could use my help right now.
Warmest Regards,
Mark Thorngren
Office Direct (805) 504-0228
mark@markthorngren.com
