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 Realtor® 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