Marketing Statistics

 

Historical Median Prices“Why Buy Now?”

HOMES ARE SELLING!

  • Home sales continue to experience minor fluctuations in California while the rest of the nation continues to decline.

HOMES ARE NOW AFFORDABLE!

  • The median price paid for a home in January 2011 was $279,900, while the median price in July was $294.230, a 5% increase. Considering the median price in 2005 was $524,020, the current cost of a home in California is 44% less than in 2005.

PAYMENTS ARE LOW!

  • The typical mortgage payment that home buyers committed themselves to paying last month was $1,106, 58.1% below the current cycle's peak in June 2006.

Historical Interest Rates“Why Buy Now?”

INTEREST RATES ARE LOWEST IN 42 YEARS!

  • Mortage Lenders have lowered interest rates to the lowest point in 50 years but they are STARTING TO RISE!

SPECIAL FHA 203K LOAN PROGRAMS HAVE BEEN CREATED FOR RENOVATION AND REPAIRS!

  • "Finance Repairs” to be completed after the close of escrow into your home loan.
  • Loan amounts are based on the improved value of the home.
  • Renovation costs are spread throughout the mortgage term.
  • All expenses are included in a single transaction.

“Why Buy Now?”

CALIFORNIA’S POPULATION CONTINUES TO GROW!

  • California has both high rates of population growth and a constrained supply of developable land.
  • For that reason, home prices will climb and we will again experience a long-term imbalance between supply and demand in the future housing market.

OVER 70% OF CALIFORNIA’S POPULATION GROWTH IS DUE TO BIRTHS!

  • As families grow in their numbers, so do their needs for larger homes.
  • Marriages, employment, military transfers, promotions, retirements etc., all contribute to changes in housing requirements.

HOUSING CONSTRUCTION STARTS ARE AT THE LOWEST LEVEL SINCE 1955!

  • As the supply of available housing diminishes, demand increases and the cycle moves upward in value and pricing.

California Population

Southern California Population

Northern California Population

Housing Starts

 

 

© Copyright 2010 by Richard Merk. All rights reserved.