Entry level buyers gain success not realized 2 years ago

filed under: Buyers, Market updates posted on December 17th, 2007

I heard a great story from one of my wonderful colleagues, Delia Nieto at Coldwell Banker yesterday.   I spotted her meeting with clients in the office so that they could remove all contingencies on the purchase of their first home, priced well under $500,000 in Santa Rosa.   They have rented the same tiny apartment for 6 years and are bursting at the seams with 3 children.  Two years ago at the peak of the frenzied Sonoma County real estate market, the median home was priced around $600,000.  Although this family worked closely two years ago with Burbank Housing , a Sonoma County non-profit that works with low-income residents to get them into affordable housing, their jobs as a special needs teacher and landscaper did not quite qualify them to buy at the peak prices.    But the downward spiral of entry level prices and their diligence over the last two years, as well as the Acorn Housing Loan program offered in this case in conjunction with Bank of America  are enabling them to buy their first home.  Through the Acorn program they each took numerous classes in home ownership and responsible credit management.   Meanwhile, the house they would have paid $540,000 for two years ago, will now cost them $460,000!    Astonishingly, Bank of America’s appraisal for this same house for their CURRENT loan, came in at a hefty $530,000.  Delia and I are both puzzled but this occurence, but her very happy clients will take it.   Meanwhile, yesterday’s Press Democrat newspaper’s front page story, confirmed my little anecdote as a trend.  

Buyers’ market

People priced out in recent years jump in as costs fall, supply rises

 Nice to see the press making some lemonade (along with smart first time buyers) of the current market.

posted by Pam Buda // 1 Comment »