6/09/2008

Are Reductions Finally Leading to the Price Change Point?

Along with the general information from National Association of Realtors that April's pending sales were up 6.3%, Lawrence Yun, the chief economist, also says,

“Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants,” he says. “Sharp price reductions are leading to a quicker discovery of price equilibrium points. The West is already seeing year-over-year gains in pending contracts.” See the pending home sales by region since 2005.

Some buyers are already discovering this locally. Single family house properties under $400,000 and mid-$300,000's in previously desirable areas are getting multiple offers, while the condo market and new home sales may be sitting a while longer. Per Realist's tax data information, the Los Angeles County median single family price for April, 2008 is $445,000 ($570,000 one year ago); for condominiums, $405,000 ($459,000 one year ago).

While California is officially not a "declining market" as of June 1 per FNMA and Freddie Mac, the proof is in whether or not the lenders follow suit with appropriate programs which will benefit first-time buyers in particular. Right now FHA is the most viable product for first-time buyers or low-down payment buyers. For additional assistance, please contact me or search properties at http://www.juliahuntsman.com/.

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