During the first quarter of this year, the price of homes was up by 14.7% to a median price of $379,000. It may possibly be that the rise in home prices is due to the fact that the properties in need of the most repair have been sold, largely to investors and house-flippers, and that the higher-priced homes, which are in much better condition, are coming on to the market.
In addition, there was a decrease in the number of foreclosures, which has not happened in 4 years. These may be signs of an upward trend for the economy.
Your first priority in order to get in on the positive change in the real estate market is to obtain financing and get a letter of approval that can be included with any offers you make.
Mortgage interest rates are at their lowest point in years. An FHA loan is presently available with the low down payment of 3 1/2 % of the purchase price.
As the Federal Tax Credit for buyers has come to an end and the California State Tax Credit has limited funds available, lenders may be willing to present low prices on their foreclosed homes in order to get them sold.
