Children are back to school and the holidays are quickly upon us. The end of year season has typically always been the best time to find a great price on a home and this year is no exception! Contributing factors:
1. Prices may be as low as they are going to go. We have been in a declining market for about a year but we are seeing definite signs of stailization.
2. Interest rates reduced dramatically this week due to the government take over of Freddie Mac and Fannie Mae. Also brings some stability to the market since these companies are in no immediate danger of failing
3. FHA and conventional loans are still enjoying loan limits of $729,725k but this will reduce after the end of the year to $625,500. Also FHA down payment will increase to 3.5% from 3% after Oct 1st.
Usually the first areas that are affected by adverse conditions are usually the first to come back. California was leading the way so could be one of the first to officially recover. All markets are different and Irvine has not been as negatively affected as some of our neighboring cities. We do have short sales, foreclosures and bank sales but the numbers have been steadily decreasing every week. Remember, first and foremost you are purchasing a home to build memories. We have always had fluctuations in home values. The market can turn on a dime and most people will not see it coming but rather see it leaving.
Remember, Buy low-sell high