The housing market is a reflection of the strength of our economy. it’s not a coincidence that a robust housing sector energizes the overall economy. Home prices have effected communities differently and to varying degrees. A few neighborhoods in the country have not been disturbed, while other markets have been damaged beyond repair. Those areas impacted most with deflated home prices are showing signs of stabilizing home values, mainly due to the sparse number of properties on the market and the historical rock-bottom interest rates. One size does not fit all when comparing housing stability, therefore from town to neighboring town can have a huge discrepancy.
The affordability rate has a positive impact on housing with more first-time buyers realizing their monthly mortgage payment are equal or less than the rent that currently dish out. Investors have a pronounced influence on the recent resurgence along with sellers looking at buying a second home or downsizing from their present living situation. The negative effects of bank-owned properties on communities have actually turned into a positive stimulant, bringing more prospective home buyers to the market. With 2012 being a presidential election year and the economy still uncertain, interest rates will remain respectable through the end of the year. Lenders have created many excellent loans and a large number of homes can be purchased for as little as 3.5% down payment for owner occupied homes.
Homes in Davis, California and Yolo County can be used as a point of reference. Since the housing peak in 2006, housing values in Davis adjusted by 20%, where as the rest of Yolo County dropped by 50% or more. Many families desire Davis because of the highly acclaimed schools, the safety factor and other desirable amenities. Unfortunately for the average income earner, Davis would not be considered affordable. Our neighbors to the north in Woodland had prices plummet by 55% over the last five years. In some cases you can buy two homes in Woodland for the price of one in Davis. Investors have taken notice with a number of all cash property purchases in Woodland, while first-time home buyers are taking advantage of the equal mortgage to rent comparison. Stable home prices combined with the low-interest rates and shallow inventory has reinvigorated the housing market. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my other informative blogs, join me professionally on my LinkedIn or Twitter accounts and easy access to view local area homes for sale in Davis, California and the surrounding communities.