Buyer's Market Continues to Heat Up

Last week, the government reported that sales of new homes fell in November to the slowest pace in almost 18 years, while new home prices dropped 11.5 percent to $220,400, the largest decline in eight months.

In 75 of the 100 top U.S. cities, prices are expected to fall in the next 12 months according to Fiserv Lending Solutions.

CNN reports that sales of existing homes fell 8.6% in November, much worse than expected. Median home prices suffered the worst decline since the Great Depression.

8 California Communities make CNN's – 10 Worst Real Estate Markets for 2009

• Los Angeles
• Stockton
• Fresno
• Anaheim
• San Diego
• Sacramento
• Riverside
• Fresno

Existing home sales are now the weakest they have been since July 1997, and price drops have wiped out all the previous gains back to February 2004.

ReFi Madness

Falling interest rates are fueling a mortgage refinance frenzy as homeowners rush to reduce their housing payments. The average rate for a 30-year, fixed mortgage dropped to 5.08% last week, according to the Mortgage Bankers Association, more than a full point lower than just a month ago.

Mortgage applications were up a whopping 48% last week, according to the MBA and more than 80% were from homeowners looking to lower housing costs. Tim Soldati of First Priority Financial, says it's raining loans and they're all refis.

Who should consider refinancing

• Anyone with high adjustable-rate loans
• Those who would lower their rate by a percentage point or more
• Those who are planning to stay in their homes for a while
• Borrowers with significant equity in their homes
• Borrowers who don't think rates will decline much further

The current buyer's market represents a great opportunity for:

• Parents with college age children – buy a condo instead of paying dorm or apartment rent.
• Parents that want to help their children get into home ownership
• Homeowners with equity to leverage
• Real Estate Investors
• Baby Boomers thinking of retiring in the next 3 years

There has never been a better time to invest in California real estate, banks are highly motivated to get REOs (bank owned properties, foreclosures) off their books. Local communities and homeowners, also want to see the foreclosures gone so their property values can stabilize.

Our FREE In-Depth Market reports are available for most communities in Contra Costa & Alameda counties- updated weekly, breaking data down by zip code and price point.

Contact Paul for information on residential real estate investing 925-963-4246