Experts agree that home buyers have never been in a better position to afford a home. According to the NAR report, a median-income family, earning $59,700, could afford a home listed at $285,600, assuming they invest a 20% down payment. A year ago that figure was just $164,600. Fortunately for buyers in San Diego, there are hundreds of San Diego foreclosures listed under $285,600!
Pending Homes Sales Up
Because of the current low prices, more people are able to enter the housing market and take advantage of federal stimulus funds, tax rebates, historic low interest rates and the deluge of San Diego County bank homes on the market. First time home buyers particularly benefit from the current market conditions, as they are typically within the median income ranges and benefit more from lower interest rates rather than huge tax write-offs. As a result, pending home sales are up across San Diego as more buyers are out shopping and finding perfect deals on San Diego County bank owned homes.
Buyers do need to manage their debt correctly however. A high housing affordability index relies on the assumption that people can contribute 25% of their income to their mortgage payment. High credit card, student loan or revolving debt can lower a person's housing affordability and late payments or a bankruptcy can derail home buying efforts for years. The good news is that even if you have special credit circumstances, there is still opportunity in today's market. While credit score is important, many of these determining factors are being negated by the incredibly low prices and affordable interest rates being offered right now.
Home sales and median home prices were both up in May, indicating the market is beginning to rebound from record numbers of foreclosures. There are still plenty of San Diego foreclosures available, however and Richard Elias explains what the rise in home prices means to foreclosures buyers.
San Diego foreclosures benefit from new transit projects across the county. Richard Elias explains what the $10 million in Smart Growth funds will pay for and what it means for buyers of San Diego bank homes.
San Diego foreclosures are disappearing from the listings, shrinking inventory and creating a seller’s market. Richard Elias offers insight into the current San Diego foreclosures market.
About this Page: Housing affordability is up across the southland, primarily due to lower sales prices on San Diego foreclosures. Richard Elias explains what that means for buyers entering the market.
San Diego Foreclosures Lead to Increased Housing Affordability
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