There is plenty of doom and gloom news to be heard. Are you ready for some good news? Does anyone give any positive information? There really is some good news in the middle of the economic peril. Fear and gloom do not need to dominate the news.
Leaving Orange County you pass through the Santa Ana Canyon. It leads into the Inland Empire. The first city in Riverside County is Corona. The Corona Valley is the Gateway into the Inland Empire.The homes in this area are the first housing available for commuters from Orange County.The Inland Gateway Association of Realtor(C) is located in Corona. The Inland Empire has been known as the affordable housing neighborhoods for those who are willing to commute.
Buyers from Orange County realize that the convergence of low prices and low interest are creating the opportunity allowing them to to step into home ownership. Years ago when the market began shooting up, many people were left behind. The Inland Empire saw very rapid appreciation. It led in the growth of the real estate bubble. It has been one of the hardest hit areas in the nation. When will the bottom of the fall be identified?
Consider some facts. Housing sales volume is up from a year ago. Prices have tanked.In some areas the houses are being sold at a price that is below the cost to replace the house. This fact keeps the builders waiting on the sidelines. Standing inventory of houses for sale has dropped from years of inventory to what is now an inventory of available houses counted in months.
Investors are buying houses at these bargain prices. Rents are not high. Investors are buying single family houses that they are able to rent for positive income.
Just a few months ago banks listed their REO homes and had to bargain downward. Now the banks price houses below the amount willing buyers will pay. Multiple offers above asking price is not uncommon.
Interest has been setting record lows. It is a small window of opportunity for qualified buyers to get a great home at a bargain.
Reading the national news does not give a clear picture of what is happening in "The Gateway."
Prices can go lower. Interest is not likely to dip. The cost of money is expected to go up. Compare a 10% drop in the price of a house to a 1% increase in the loan interest rate.
Waiting to buy your home in one of the Gateway Communities could turn out to be a costly mistake.
I'm Dave Allen. I'm a Realtor. I believe in real estate as a long term asset. What say you?