Cash is King – Upside Down Mortgage Solutions

April 24, 2008

3 Signs the California Real Estate Market Has Hit Bottom!

In a Real Estate market such as this most people think that the doom and gloom will last forever.  The Media puts the permanent spin on things and wants the average person to buy into an upside down Real Estate market and the Media is often 60 days late on most information.

I have 3 charts that will show the basics of a Real Estate Market focusing on the Sacramento, CA area but this information can be used across the US as California has been hit the hardest.

Sacramento Real Estate Number CHART HEREwaynes-4-9-08

  1. Chart #1 Market Dynamics: Supply & Demand- The sheer volume of open escrows month over month for the first part of 2008 has really shown had an impact on home prices.  Ask an active Real Estate Agent and you will find that most properties have multiple offers and are going for more than the listed price.  March has shows you that 2944 homes were put into contract and that we should expect the number of closed transactions in the month of April to skyrocket. 
  2. Chart #2 Market Dynamics: Median Price (sold)- January of 2008 was the obvious bottom of the market in the Sacramento, CA area for Real Estate.  You can see how the average price of a home from January to March of 2008 has risen showing strength in the market and the exact increase isn’t represented here but we can see that it was significant.  Chart #1 supports this with an increasing level of volume (demand).
  3. Chart #3 Market Dynamics: Months Supply of Inventory- I think this graph is telling as it goes to prove that demand is up and supply is decreasing.  With only 4 months supply available in March we can expect home prices to increase if we don’t have an influx of new REO homes to keep prices the same.

I always get asked if this is a good time to buy and I tell people a variety of answers based upon what they plan on doing with their properties.  Investors, step it up, now is your opportunity but be prepared to find financing (traditionally speaking) harder to come by these days.  Move up buyers, You can find a steal of a deal out there in this market, high priced home sellers are desperate but bring on your cash because financing can be challenging here too!  First time homebuyers, this is the market you dream of, financing is out there and focused on your segment of buyer.  

By trade I do loans and help many people find solutions to their financing needs.  I can help with a variety of topic so feel free to contact me at brent@brentlane.net

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4 Comments »

  1. Hello,

    I have looked through your blog and found a lot of helpful information. Is it possible either to put a link to my site in your own posts or to place my post with my link at your blog? Wait for your answer.

    Best regards,

    Helen.

    Comment by Helen Dawes — April 25, 2008 @ 9:26 am | Reply

  2. Sent me the link and I would be happy to take a look!

    Brent

    Comment by brentlane — April 25, 2008 @ 9:47 pm | Reply

  3. […] posting.  If you take a closer look you will see demand increasing while supply is decreasing. (read it here) The Bank Owned Properties are still finding offers with nice down payments and they are limiting […]

    Pingback by Foreclosures Increase 245% In Northern California BUT!!!! « Cash is King — April 29, 2008 @ 6:19 pm | Reply

  4. […] I think that many people just close their eyes and hope things get better when they should be focusing on the reality, NOW IS THE TIME TO BUY! ( See Previous post here about actual numbers supporting this information) […]

    Pingback by California Real Estate: You Better Buy Soon. « Cash is King — May 14, 2008 @ 4:09 pm | Reply


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