There is good news for the housing market in California. (http://online.wsj.com/article/SB124353047811163187.html) Many indicators are showing that things are looking better, especially in the Bay Area. Highlights from the above Wall Street Journal article include:
· Sales of existing, single-family homes increased 49.2 percent in April in California compared with the same period a year ago, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) April sales and price report.
· As the level of unsold inventory declines, the state’s median price will likely stabilize. Inventory levels for homes in the under $500,000 segment shrank to nearly three months in April, compared with almost 10 months a year ago, while unsold inventory in the more than $1 million segment rose to approximately 17 months, compared with roughly 10 months in April 2008.
· The median price of an existing, single-family detached home in California during April 2009 was $256,700, an increase of 1.4 percent compared with the prior month, but a 36.5 percent decrease from the revised $404,470 median of a year ago.
· Favorable home prices in many parts of the state have led to an increase in affordability for first-time buyers. In the first quarter of 2009, affordability rose to 69 percent, enabling many to take advantage of first-time buyer programs and near record-low interest rates. (Courtesy of Market Matters/California Association of Realtors)
The bad news is that interest rates have jumped in the last week, which will affect buyers, sellers and those trying to refinance. Buyers will encounter higher mortgage payments, which will scare some out of the market, thus hurting sellers' chances of receiving their asking price. Those trying to refinance and stuck in the paperwork process may be stuck with higher rates now because the lower rates of last week could not be locked in. (http://online.wsj.com/article/SB124381108186970343.html)
On a positive note, while the interest rates have started creeping back up, they are still historically at a very good level.
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