In California’s Southland, a region comprised by the counties of Los Angeles, San Diego, Riverside, Ventura, Orange and San Bernardino, the median home price for newly-built residences, repossessed houses for sale and non-foreclosed previously-owned houses has not increased on a year over year comparison since July 2007, based on a study in California on foreclosures and foreclosure prices.
In May, the median price for all newly-built residences, non-foreclosure existing homes and repossessed houses in all the six counties of Southland was $249,000, an 8 percent increase from the April median home price of $247,000, but representing a drop of 32.7 percent from the median price of $370,000 in May last year.
The monthly median home price in Southland was at its lowest level in February 2002, when the price went down to $242,000. The second lowest median home price occurred this May, which was $249,000. The lowest median home price was 50.7 percent below the highest median price of $505,000 which was reached in the spring and summer months of 2007, the heydays of the housing market.
It is these low levels of prices that should be taken advantage of by first time home buyers planning to buy a home in Southland. Investors looking for properties in California can also find repossessed houses in Southland that they could turn into sources of additional income. All they need to do is to make their own research of prices and do their cash flow analysis. They should also get ready with their mortgage financing and their closing costs.
In California, first time home buyers can take advantage of the $8,000 federal tax credit and at the same time apply for the state assistance for closing costs and down payment.
Prospective home buyers need to act on their home purchasing plans now because the state home purchase assistance fund is nearing exhaustion and the federal tax incentive is nearing its deadline. The federal tax credit ends on the last day of November this year.
Potential home buyers are also encouraged to take advantage of lower mortgage rates before they go up again. In the past several days, mortgage rates have been climbing up again.
First-time home buyers can also take advantage of FHA-guaranteed loans which is offered at lower rates and with less stricter loan and credit requirements. They can also take advantage of lower prices of repossessed houses for sale in Southland.
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