CalPERS.ca.gov (official CalPERS site) | SMARTMOVE©
What's My Home Worth? | Apply Now | Rate Watch |  Contact Us

A Time To Buy?
The rise in foreclosures continued to drive down the median price of homes across the country in the third quarter, according to a report released by the National Association of Realtors on Tuesday.

Between 35% and 40% of all transactions were either foreclosures or pre-foreclosure sales -- called short sales -- in the quarter, the report says, causing the national median price of a single- family home to drop to $200,500.

"Homes are selling because prices are plunging," said Patrick Newport, economist at Global Insight. "Prices are plunging because of distressed sales."

While existing home sales dropped from the third quarter of 2007 in the South and the Northeast,  the number of sales jumped 13.1% in the West.

Joel Naroff, of Naroff Economic Advisors comments, "People look at it as being bad. I see it as being good. The foreclosures and short sales are getting prices to where they belong."  

The areas that saw the largest price declines were the areas hardest hit by high numbers of foreclosures: Riverside/San Bernardino/Ontario, Calif., down 39.4%; Sacramento/Arden-Arcade/ Roseville, Calif., down 36.8%; and San Diego/Carlsbad/San Marcos, Calif., down 36%.

As sad as it is for those losing their homes, those that have waited to make the biggest investment of their lives, are in a great position to buy a home at a bargain price.

Unfortunately, the media continues to spin on the negative and ignore the positive. There are still low down and no down payment mortgages available. Interest rates are still very low, and even though credit markets have tightened, if you have decent credit and can prove your income, you can more than likely get a home loan.

Whether you are in the market or not, here are a few things YOU should do right now:

1. If you are not in the market for a loan right now, make sure your credit standing is as solid as possible. Many affected people didn't plan in advance to ensure their credit would qualify them for the best possible financing.
2. If you are in the market for a home loan, or know someone who is - now is the time to work with a real qualified professional who can keep you informed of the changes in the market. Now is not the time to play risky games trying to scour the entire nation to find someone who promises to save enormous costs, or deliver rates that are too good to be true.

Your home and financing are too important, and times have changed. We are here to help and advise during these volatile times - and would welcome calls from you, your friends, family, or coworkers.