gmhTODAY 02 gmhToday May June 2015 - Page 63

Renters Feeling Pressure From Rising Housing Costs We are beginning to see a the gap between rental costs and house- hold income widening to unsustainable levels in many parts of the country. New York, Seattle and San Jose are among the cit- ies where combined rent growth is far exceeding wages. The disparity between rent and income growth has widened to unhealthy levels and is making it harder for renters to become homeowners. Renters are finding it difficult to save for the down payment due to high rental costs. Renters feel the need to buy now to lower their rental cost and build equity as the market is in an upward movement for building equity but are sometimes feeling trapped between not having enough down payment or a credit problem like a short sale or foreclosure keeping them from coming back into home ownership. The banks have continued to be diligent in approving loans for purchases. It is far easier than right after the crash but they maintain guidelines to prevent easing up too much that could have future consequences. What we are seeing is the forgiveness time length being shortened in some loans making it a shorter wait time to qualify to re-enter the market. Keep in contact with your RealtorĀ® and we will make sure you are prepared to make your purchase and guide you through all your questions. Home buyers, however, are making it work and we have many more buyers in our market wanting to buy. We still are seeing homes that are ready for the market and priced right continue to have multiple offers. What we have noticed in the south county area is that the high-end market is seeing a rise in multiple offers also. We are noticing a large number of buyers looking in the price range of $1.8+ million. Many of these buyers are cash, and we are seeing more contingent offers in the high end market. South County continues to rise in all the market areas and the most recent is the very high end. The inventory is still very low and for those of you that would like to move up to a larger home or downsize, now is the time. Spruce up the outside and inside of your home for maximum desirability to buyers if you will be selling. Have the net sheet from selling your home ready before you find the home you would like. Have your home ready to go on the market for the best position for making an offer. Have your lender preapprove you for your purchase. Having these things complete puts you ready to not miss the home of your dreams to another buyer. Your real estate agent has the experience and knowledge to help you with all of these Quick Stats Local Trends Single Family Residential in Morgan Hill 2015 JANUARY FEBRUARY MARCH Active 27 71 64 Homes Sold 42 32 29 Days On Market 56 52 51 Sale To List Ratio 101.5% 98.8% 99% Teri Nelson, Realtor Intero Real Estate Services 408.425.5200 BRE#00858151