Bad news for seller profits is GREAT news for buyers and investors! As home prices continue to decrease, buyers are finding a home or investment property purchase to be increasingly affordable. Reflecting this reality are the home sales statistics for February of 2008, which show a 2.9% increase in sales nationwide.
Lenders have toughened requirements for mortgages, however buyers should not despair as the Fed and the Office of Federal Housing Oversight continue to take action to restore balance to the housing market. The Fed has made drastic cuts to the interest rates, bringing them down to 2.25% over the last several months. According to an article on Bloomberg.com, “[t]he Office of Federal Housing Oversight lowered the capital requirement on Fannie Mae and Freddie Mac to 20 percent from 30 percent last week. The initiative may immediately pump $200 billion into the mortgage market.” Higher limits on FHA and conventional mortgages should also serve as a boost to buyers (FHA-backed loan limits were recently raised to $729,750 in high-cost areas such as Los Angeles and New York, up $300,000 from the previous limit).
For more information, take a look at:
Bloomberg.com
BizJournals.com
FHALoanPros.com
Looking to buy? It’s a buyer’s market! Check out LABestDeals.com to see the lowest priced and best valued properties in Los Angeles and the surrounding areas.
Tags: BZPros real estate team Pasadena CA, california housing market, Home Sales on the Rise as Prices Continue Falling, pasadena real estate market, Tal and Adeline Realtors
