From the weekly California Real Estate Board Newsletter: New homes inventories last month keep falling and HUD (Federal Housing and Urban Development) announced that allowing home buyers use their $ 8,000 tax credit for down payment and closing cost for FHA insured homes.
These are good and encouraging signs of Government’s 2009 Stimulus Plan is kicking in. With interest rate still hovering around 5% or less, hopefully this will encourage investors to come into the market. Most of the stats we’ve seen this Spring are numbers of REOs and foreclosures. In Central Valley such as Merced and Fresno, people put in multiple bids for different properties, in order to secure one they want.
This also happend in South Santa Clara County in Silicon Valley. Buyers who have stood by the side lines have long waiting for this moment. The County’s median price was $772,500 a year ago, right now at the end of April, 2009, is $470,000. Inventories were down from 5,599 to 3,962. (stats are for Single family homes). It fits the curvy line theory: what goes down first, will come back first too.
Soon, these bargains will ALL be gone.