Regarding residential real estate in centra Contra Costa County, California:
Ever travel where you were spoiled by good weather and low prices? For me that is the frosting on the cake of a good vacation.
Our current real estate market reminds me of such a vacation. Our average price in May of 2004 was $557,000. Last month that average was $553,000. In other words, a buyer can buy today at 2004 prices.
In spite of interest rate increases over the past three weeks, our interest rates still hover around 6.25 for 30 year conforming loans.
Housing demand continues to build. Large funds ("Vulture Funds") are buying up blocks of inventory as we speak. They plan to rent and hold this inventory for five years. The bet here is that we are near a bottom and appreciation will follow.
I calculate the pending to active ratios for the past month on the 15th of each month. Our present inventory is fluctuating from 8 to 12 months. Buyer's are in the driver's seat, but I question for how much longer.
Get your duck's in line! This is a great market for first time buyer's and move ups. The secret to a great landing is a well planned and well executed approach. Know what your options are and get guidance from well qualified professionals.
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