The CA Association of Realtors release their December Sales report that posted gains for the third consecutive month! Factors influencing this trend could be the slowly improving economy, very low interest rates, already low prices that are inviting a slew of investors and first time home buyers into the market. Home prices at at 10 year lows in several areas across the Bay Area.

Sales in the low end price ranges and distressed, short sale and foreclosure market show robust demand from investors while sales for upper end homes are still under pressure. Improving job market and consumer confidence and steady mortgage rates will most likely spur a modest increases in some areas in the coming months.

DecemberHousingStats

Finally, there is light at the end of the tunnel for Bay Area real estate. After several years of dismal performance, several pockets are starting to stabilize, and some are expected to increase in price in the coming  months, according to Clear Capital, a real estate valuations company.

Although the housing market across the country is doing well compared to the previous years, the Bay Area market is doing better and recovering faster because of the stronger underlying economy. Low interest rates, continuous decline in prices for the past 4-5 years making housing more affordable and more attractive than renting have brought a lot of home buyers back into the market.

Inventory is still very low and buyers face stiff competition from investors paying ALL cash. Homes in the low end have fallen to the levels of condo and townhome prices, in many areas, these properties are at 10 years lows! Since most of these homes are bank owned, short sale or foreclosure homes, they can be bought up to 30% below market value! So investors are scooping them up for either buy, rent and hold scenarios or buy, remodel and flip!

For more information on how to build instant equity call the SirishaHomes team today!

For many people and for many reasons, buying a home is better than renting a home.

In many communities, the inventory of houses to rent is limited, whereas there’s likely to be a large variety of houses on the market at many prices. If specific location matters, buying a house is the better way to choose the ideal location than renting a house.

Lifestyle is another major consideration. Owners can modify a house to suit their needs. A popular modification is making a house habitable by someone with disabilities. A renter would not be able to modify a house and a landlord is unlikely to change a house to suit a tenant. If a house needs updating, with new energy-efficient appliances, homeowners will update kitchen and laundry appliance, or put in a new furnace. In many neighborhoods, homeowners are converting to solar power too. Most landlords don’t often buy new appliances for their tenants.

Animal lovers can have pets. Landlords always have to think about keeping a rental property suitable for the next tenant. That often means excluding pets from a house that’s a rental property.

One of the major reason most people choose to own instead of renting houses is for the tax deduction. Mortgage interest is deductible, as are property taxes. Modifying a house to be more energy-efficient can be tax-deductible too, depending on the year’s tax codes. The tax advantages are in effect for Federal and state taxes. Deductible mortgage interest is usually the largest deduction off the Federal income tax that people take. Renting offers no tax advantages. Rent paid for a home is not deductible.

The other major financial advantage to home ownership is that owning builds equity over the long term. Once a home is paid off, living there is essentially free, aside from upkeep and taxes. With renting a home, there’s no equity; rent must always be paid.