Housing Affordability In California

This is great news! Interest rates are so low and more REO's for the market soon. The First Time Buyer Credit extension and now the "Move-Up" credit of $6,500. What better time is it to buy? CENTURY 21 Award and Wells Fargo have joined together to create GreenPath financing. With over 1700 different types of loans.
This was on the C.A.R. page this morning -

In the third quarter of 2009, nearly two-thirds (64 percent) of California's households could afford a home at an entry-level price of $247,150. The monthly mortgage payment including interest, taxes, and insurance (PITI)-based on a 10 percent down payment and the prevailing mortgage rate of 4.79 percent-added up to $1,450. That is $340 less when compared to a year ago, when the entry-level home was priced at $290,490, the mortgage rate was 5.30 percent, and the monthly (PITI) was $1,790. The First-time Buyer Affordability Index is 9 points higher than the third quarter of 2008 when only 55 percent of the households were able to afford a home. While this affordability index only goes back to 2000, other affordability measures indicate that affordability has been at a historically high level in 2009 even compared to the 1980s and 1990s.



Buyers if you are not in a position to buy now, talk with your banking institution and find out how to get yourself ready to purchase a home before you are out priced again. Please remember to get at least 2-3 quotes from different lenders on rates and fees, these are negotiable. Your REALTOR can help you in that area as well, by referring lenders they have worked with in the past. The choice is yours. So, now is the time to start planning before the mad rush in early springtime.