Signs of positive change in the housing market are everywhere. Housing prices are seeing gains
that are the highest in six years. Investors, who led California market off the 2009 market bottom
with all-cash demand for distressed properties, are still bullish and a force to be reckoned with.
Mortgage rates are at 50-year lows, and housing affordability remains at record highs. For the
majority of potential home-buyers, the recommendation based on a “buy versus rent” analysis
is unequivocal: its time to buy. So the housing market is on the road to recovery with all systems
go – right? Not exactly.There are a few significant speed-bumps, with the biggest by far being a
lack of inventory.
In August, the CALIFORNIA ASSOCIATION OF REALTORS reported that statewide there was
only a 3.2-month supply of homes on the market, half of the long term average and what would
be considered a normal or balanced market.The perception that the state is flooded with properties
for sale and heavy discounting is norm is just not an accurate description of today’s housing market.
The bottom line is clear – its a great time to buy, but finding and successfully closing on a home
takes patience, a clean offer and perhaps a little luck and a good Realtor.