Partially driving the volume and pricing, the 30-Year Fixed Mortgage Rates are down again according to the latest Freddie Mac survey, to an average of 3.32%.
All cash purchases continued to rise: 32.5% of all California sales in November were all cash, more than double the long-term average. There is mixed analysis and emotion as to the influx of cash investors. Some see another “speculation” market brewing; while others, such as Ed Leamer, director of the UCLA Anderson Forecast of the economy, was quoted in the Los Angeles Times stating, “I am inclined to think that what [others] call speculators know more about the market than [they do]… It’s a good thing for professionals to be putting a floor under home prices.”
Foreclosures only made up 16.6% of all sales, down almost half from November 2011 and the lowest level since October 2007. “Distress sales have been declining, especially in California,” where foreclosures are processed rapidly outside of the court system and investor interest is high, Moodys.com housing analyst Celia Chen said.
Is it the right time to buy? That of course is a personal decision and the long-term future of housing is anyone’s guess. But for those who can qualify, interest rates remain at all-time lows. A shortage of supply, ample competition (including cash buyers) and other factors make the market for desirable homes in good locations likely to continue to escalate over the short term.
Looking to buy? Obtain your pre-approval from a local reputable lender and consult a local respectable REALTOR®. All real estate is local and only a local REALTOR® has expertize in the local market you’re searching.
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