Why buy a home in today’s Real Estate market?

Interest rates on long-term, fixed, and adjustable mortgages are at historically low
levels. The rate on a 30-year, fixed mortgage is hovering just below 5 percent, while,
by comparison, interest rates were hitting 8 percent and higher during the last market
downturn in the late 1990s, and were between 10 and 12 percent at the height of the last
housing boom in the 1980s. Lower interest rates make it easier to qualify for a loan, and your
monthly payments are more affordable.

No one can put a price on the intrinsic value of homeownership. Home prices also
reflect financial worth and, the good news is, across California the median sales price
for a single-family home has been consistently rising for many decades. In short,
housing remains a solid, long-term financial investment. While the pace of home appreciation
has slowed over the last several years, historical data suggest home prices will continue to appreciate over
time.

The multiple-offer frenzy that dominated the latest housing boom has subsided, and there is
less pressure on today’s home buyers to outbid one another. REALTORS® in California reported
that in 2011 only 3 percent of homes sold had multiple offers, compared with 57 percent
in 2004. (source: C.A.R.). Homes are "on sale" in today's market compared to years past. There's
more inventory to choose from. As a buyer you have more leverage (buying power) and can be
more discriminating in the neighborhood, amenities and size of home than in years past.

The credit industry crisis that has made securing a home loan difficult for many has led to
heightened scrutiny of mortgage lenders. As a result, state and federal agencies have created
protections for home buyers that were not in place a few years ago. The U.S. Federal Reserve, for example,
has proposed a plan to require lenders to confirm a borrower’s ability to afford a mortgage before
making a loan and establishing guidelines for explaining subprime loan terms in order to better educate
buyers.