According to the LA Times, California real estate sales increased this November in comparison to 2010, up 4%. The positive news is, however, just a small piece of the picture. The median home price is down about 4.3% from last year.
What’s important to note is that the market is not rushing back to its former glory because of new mortgage struggles despite the “discounted” home sale prices…”These days, buyers and sellers have to contend with two sets of problems, which sometimes play into each other and sometimes conflict with each other,” DataQuick President John Walsh said in a statement. “The first is the lousy economy and the opportunities it presents, for better or worse. The second is the dysfunctional mortgage-finance system. Interest rates may be at record lows, but the types of mortgages that are available have been drastically reduced and qualifying is a true grind.”
So what does this mean for you? If you can qualify, there’s still time to get in on market savings – recovery is still slow. Enjoy your holidays, relax and spend time with family and friends. Come the new year, think hard about your real estate needs and if you want to buy as we pass through the market lows. If you’re a seller, wait it out a little more. Good news is coming.
Lynn and Mark