OfflineBuying Cheaper than Renting
Currently home ownership is still 38% cheaper than renting, though the gap is narrowing. Some analysts estimate that interest rates will need to reach 10.6% before the gap closes. This is a national average, and it varies considerably in local markets. In Honolulu, it’s just 5% cheaper, while it’s 66% cheaper than renting in Detroit.
Subprime Lending Back on the Scene
A group of small lenders are bringing subprime loans back into the mortgage market. These loans are being offered to buyers who pose a credit risk, typically those with credit scores below 640. They’re not cheap loans though. Interest rates are as high as 8% to 10%, and down payments are required to be in the neighborhood of 25% to 35%.
Home Buyers Priced Out of the Market
Home buyers in big cities around the country are facing bidding wars and high home prices. In cities like San Francisco, Las Vegas, and San Diego, prices have climbed as much as 20% or more in the past year.
Yes San Diego, where I live, has been experiencing 20% appreciation rates since last year & there is about 1 month worth of inventory on the market right now for sale. The market is reall really tight here, so if you get anything here that is even close to a deal it is sold right away
Am building my buyers list for here since my last 4 deals have been in KC, my first in San Diego. I want to start I mean I WILL GET DEALS HERE! LOL
Tony
Go faster do more! GFDM!
THE MARKET ITS GETTING TIGHTER “But, we can still find them out there”
I've been closely watching the market in California, and yes all of you are right, the market seems to be getting tighter, but you can still find good deals out there, keep in mind that we don’t go for retail properties, we look for those properties that the average retail buyer won’t even look at, because they don’t know how to rehab this properties or because they don’t know how to find them or get them.
If you find yourself submitting tons of offers and you think things aren't working out for you, just go 15-20 miles outside from where you’re currently working in, an areas may be hot, but doesn't meant that the entire region its hot…go just outside and you’ll find good properties too.