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New Housing Market Data Shows Why Winter is Good Time to Buy California Real Estate

John LaRosa 01/14/2014

California Home Prices Increasing Steadily

The latest CoreLogic Home Price Index Report continues to show good news in the housing market. It also shows why the winter months could be the best time to buy all year.

Three facts to focus on:

  • Housing Price Index only increased 0.2% from September to October and 0.1% from October to November. This is a rather low increase although not out of the ordinary for this time of year. It means that prices did not go up very much during those months.
  • November’s 11.8% HPI increase represents the 21st consecutive month of year-over-year increases in the Housing Price Index. This means that prices have been climbing steadily for almost two years now.
  • Home prices remain 17.3% below the April 2006 peak. This means prices will likely continue to increase though those increases may begin to slow as we approach the 2006 peak price.

Taken together, these facts show that the remaining winter months of 2014 are a great time to purchase a new home in Placer & Nevada Counties, Calfiornia. In the long-term prices show no sign of decline but for the remaining winter months that rate of increase will remain low. Get in now before springtime demand brings prices up and watch your home appreciate in value for 2014.

If we look at CoreLogic’s Historical Data it shows that the national month-to-month increases in housing prices were 0.7% for January 2013, and all the way up to 1.5% in February 2013. So this winter lull in price increases won’t be lasting long.

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Placer County Real Estate Recap: October-November 2013

John LaRosa 11/27/2013

Here is the latest edition of our Placer County Real Estate Recap, from Pizzimenti Homes and Associates. This issue includes a record-breaking luxury sale in Granite Bay, and details on how you can keep yourself safe from fraud, and even ghosts!

Granite Bay Luxury Home Breaks Record, Sacramento Business Journal

A Luxury Home In Granite Bay

Found in an extremely desirable community, Granite Bay luxury real estate is in high demand. With plenty of interested buyers, and low inventory, prices have been creeping upwards for some time now. Selling for $4.725M, a Bella Terra Estates home in Granite Bay has set the record for most expensive home sold in Placer County in the last four years. This notable sale is just another indicator of the local real estate market’s recovery.

Beware of Illegal Contractors, Central Valley Business Times

The Contractors State Licensing Board (CSLB) has cited eight unlicensed contractors for contracting without a license; of those eight, seven were also cited for illegal advertising. Investigators with the CSLB posed as property owners interested in trade work. Unlicensed contractors can only accept projects valued at $500 or less in combined labor and material costs, and these contractors were bidding on jobs in excess of $10,000 for a bathroom tile job and even $15,000 for landscaping.

The CSLB had help from the Statewide Investigative Fraud Team, the Placer County and Amador County District Attorney’s Offices and the Department of Consumer Affair’s Division of Investigation in this bust.

The CSLB warns both residential and commercial property owners to beware of phony contractors. Before hiring a contractor, be sure to visit the CSLB’s website (see link below) for resources designed to protect consumers from fraud.

Is My House Haunted? Does The Seller Need To Disclose A Death in the Home? Roseville Patch

How would you feel if you found out that someone had died in your recently purchased home? What if it was the site of a violent crime or paranormal activity? Home sellers are not always required to disclose this information, and it pays to do your research.

Know your rights. In the State of California, if a death occurs on a property more than three years prior to the sale, the seller need not disclose the information unless the interested buyer specifically asks. Unfortunately, even with this requirement, some sellers and even their real estate agents try to hide information that may deter buyers, and because of this it may be worth doing some external research of your own to avoid any unpleasant surprises and lawsuits.

It was for this reason that DiedInHouse.com was born. For $11.99, you can search for the specific home you’re interested in purchasing and find out of there was a death in the home. It is well worth knowing this information for your emotional well-being and your wallet: houses where a murder or suicide have occurred can take 50% longer to sell, and close at an average price of 2-4% less than comparable homes. The stats for homes where a well-publicized murder took place are even bleaker; these homes sell for 35% less.

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Welcome to our New PHA Realty Website Video Tutorials

John LaRosa 10/16/2013

Our series of video tutorials will take the guess work out of using our website!

This section is where we’ll be regularly posting video tutorials that we’ve created to help you get the most from our website. We’ve built a number of tools and features in to our website designed to empower your home search and strengthen your Real Estate knowledge. From learning how to create a Saved Search with email updates to utilizing all the powerful features of the Map Search tool, these tutorials will guide you through various tasks to ensure that you’re getting the most from your time on our site. Check back often as new videos will be posted regularly.

You can also visit our YouTube Channel to see ALL of the videos we’ve created.

Enjoy!

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Looking Out for My Buyer: A Lesson in Purchasing Rural Property in California

Mary Pizzimenti 10/16/2013

There is a tremendous amount of rather contentious debate about the value (or lack there of) in purchasing Real Estate with a Buyer’s Agent representing you. As a California Real Estate Broker it is obvious where my opinion falls in this debate. Although I do believe there are individuals who are capable of handling the transaction on their own, most individuals DO NOT belong to this group. I’m not here to debate this matter. I’d rather tell you about an example of what it is that a Buyer’s Agent does to protect their Buyer’s best interests; about what it is that I do and what value I bring to the relationship.

A recent client of mine had entered in to a contract to purchase a home on a 3 acre parcel of land in Colfax, CA. The property was an older home and his plan was to remodel it and resell the property in a few years. Our offer was accepted and we were working our way through the Contingency Period. During this period it is the Buyer’s responsibility to do his or her due diligence to make sure they know the condition of the home they are about to purchase. This means it is my responsibility to make sure my client is informed and aware of the results of the various inspections that determine the condition of the property.

One of the last contingencies that had to be cleared was the Domestic Well Inspection. This well inspection tests the property’s well for drinkability and the volume of water it yields. Often rural properties in Placer County are not on sewage or water systems and so septic tanks and leech fields are required to address the waste and well water is required to supply water to the property. If the well doesn’t supply a large enough volume of water, measured in gallons per minute (GPM), it will be very difficult for the well to provide enough water when it is needed by the people living on the property. Generally speaking, anything less than 10 GPM is highly undesirable and would probably require the addition of a storage tank or the drilling of a deeper well.

When I received the Well Inspection Report from the Listing Agent I noticed that the first page was missing. The first page is the page that contains the results of the GPM test. So I contacted the Agent and asked for it. She told me that she had sent it. I informed her that I did not receive it and that she needed to resend it, she eventually did. When I saw the report’s results I was shocked. The inspection results measured the well’s yield at 1.6 GPM. This is well below (no pun intended) the 10 GPM needed to supply water to the Colfax property on demand. Even if the Listing Agent and Owner had no idea the GPM would measure so low, it should have been brought to our attention as soon as the report was received. Instead, they tried to sneak the report past me and my buyer.

Anyone who knows anything about buying and selling rural properties knows that 1.6 gallons per minute would create a very difficult and uncomfortable living situation for my client and his family of five. Costly and time consuming work would need to be done to the property in order to remedy the situation. And even that is shaky at best, as there’s no guarantee that drilling the well deeper would necessarily improve its performance. This meant the Placer County property was no longer as valuable as we had thought and it certainly looked like the Agent had done everything possible to prevent us from discovering this detriment. Needless to say my client and I were terribly unhappy with the deception and we canceled the contract within hours of reading the report.

Yes, it is entirely possible that Randy, my buyer, could have noticed this discrepancy himself. But it’s also possible that with all the changes going on in his life he may have been distracted and missed it. He would’ve ended up purchasing an overpriced property and still have had to spend $20,000 to $40,000 to improve the condition of the well. Or even worse yet, it may have been impossible to improve the performance of the well. The Listing Agent did go out of her way to prevent that information from being seen. That is of course if we are assuming that she didn’t “accidentally” forget to include the ONE page of information that would make the property practically unsellable. But it doesn’t matter if Randy would have noticed their ruse or not because I caught it and we immediately called them to task.

If there’s one thing I’ve learned in Real Estate, and in business in general, it’s that there is always something that can go wrong; that WILL go wrong. Staying alert and always looking out for your interests, being prepared for those problems that will arise, and knowing how to fix them; this is what I do. When I am representing you I am looking out for your best interests in your California Real Estate transaction, just like a lawyer looks out for his client’s best interests in court. And you know what they say about someone who represents themselves in a court of law.

I am very well informed concerning purchasing properties that have wells, and I was pleasantly surprised that Mary and her team were as well informed as I was. I am interested in protecting my own interest, but, in my experience, it is rare to have a team that is fighting for my rights as hard as I do. Thanks Mary and team!
~Randy Bivens, PHA Realty Client

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New FHA Program Shows Promise for Consumers Who’ve Suffered from the Housing Crash

Mary Pizzimenti 10/15/2013
Short Sale, Bankruptcy, Foreclosure

In an effort to boost the economy and the housing recovery the HUD announced this week the creation of the FHA Back to Work Extenuation Circumstances program. By recognizing that the credit situation that many consumers currently find themselves in, may have more to do with the irresponsible and possibly illegal actions of others than with poor financial decisions by the consumers themselves, FHA seeks to give a reprieve from the current waiting period that exempts borrowers from qualifying for FHA-backed mortgages for a certain number of years after a bankruptcy, foreclosure, short sale, or deed-in-lieu foreclosure. The letter released by the U.S. Department of Housing and Urban Development (HUD) on August 15th states, “FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

Borrowers who can…

  • Provide evidence that an “Economic Event”, “beyond the borrower’s control”, such as a job loss or other serious reduction in pay, impaired the borrower’s credit.
  • Demonstrate full recovery from the event.
  • Complete an hour-long, one-on-one counseling session with the goal of addressing the cause of the Economic Event and the actions taken to overcome and reduce the likelihood of reoccurrence.

…will be granted exemption from FHA’s waiting period for bankruptcies, foreclosures, deeds-in-lieu, and short sales. This period previously lasted up to two years for bankruptcies and up to three years for foreclosures, short sales, and deed-in-lieu of foreclosures.

One of the key phrases is “beyond the borrower’s control.” This demonstrates a willingness to acknowledge that after a serious economic crisis, a consumer’s credit can be severely affected by forces beyond their control and that credit scores should not be the only benchmark used to determine the ability to repay debt. Responsible borrowers can easily find themselves the unwilling victims of the negligent or irresponsible actions of the general public.

It’s too early to tell if the required hoops will be too difficult to jump through and since this Letter released by HUD only loosely defines the qualifications, we will have to wait and see what the net result of the program will be.

The New FHA Back to Work Extenuating Circumstances Program will allow more Homebuyers to Qualify for FHA Backed Loans

Hopefully programs like these will help give a boost to the housing market and the economy, allowing hard-working and responsible consumers to get back in to the housing market and to start rebuilding their credit much quicker. “We have to applaud HUD for reducing the time to get back into the market for the people hit the hardest. An event beyond your control that forces you into another event like foreclosure is a double blow and these people should be allowed to be homeowners again.  Although this will not help everyone it is a step in the right direction,” says Sean Safholm, Regional Vice President with Land/Home Financial Services, Inc.

To learn more about the specifics of this program or to help better determine your eligibility we strongly encourage you to speak with a Loan Specialist at a Mortgage Lender or Mortgage Broker. They will be able to provide you with the knowledge and support to help you decide if the program is right for you and to guide you through the process of completing the application.

You can contact Sean Safholm with Land/Home Financial Services directly, for advice from a trusted member of my business network. Sean can be reached at (888) 415-2000 or Sean.Safholm@lhfs.com

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Nevada County Fall Colors Come to Life

Mary Pizzimenti 09/20/2013
The Fall Colors of Nevada County set against the backdrop of the Sierra Nevada Mountains

It’s that time of year again, the last vestiges of the summer heat are slowly fading away and the days are getting shorter. In Nevada County that means it’s time for the hills and mountains to spring to life with vibrant shades of oranges, yellows, and reds. Weather conditions at 2,500 feet in the Sierra Nevada foothills are perfect for the formation of the brilliant colors the area has become known for. As temperatures begin to drop and the days shorten chlorophyll production is slowed in plant life. For many trees and plants this means that colors other than green can become visible. For residents and visitors of Nevada County it means a lively celebration of the colors of fall painting the hillsides and decorating the streets.

Fall is already a great time to visit the bucolic foothill cities of Grass Valley and Nevada City. The area’s rich Gold Rush history, the reduction in visitors due to the cooler weather, and the abundance of gourmet restaurants and boutique inns and hotels makes this a perfect time to visit the area. Add to that the splendor of bright yellow, orange, and red that blankets the cities and it’s not hard to see why the locale is such a hidden gem.

Serious enthusiasts or those looking to make a weekend of their Fall Colors tour have the 160 mile Yuba-Donner Scenic Byway that loops through the foothills, up to Donner and Yuba Summits, and back down circling the Tahoe National Forest. This route starts in Nevada City and follows State Highways 20, 49, and 89 as well as Interstate 80, and offers a wide variety of foliage and scenic backdrops.

It is impossible to predict the peak color weeks during which the Fall Colors are most lively but the middle of October through Thanksgiving is generally considered the best time to visit. Both the Nevada City and Grass Valley Chambers of Commerce encourage visitors to call ahead and inquire about conditions. They will be more than happy to help you determine how to plan your trip and can provide you with info on some of the best places to view the breathtaking foliage.

The link to the Fall Colors Brochure located after the article provides a map of some scenic views of autumn foliage found around Grass Valley and Nevada City.

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CoreLogic Credit Card and TransUnion Mortgage Equity Reports Demonstrate Lessons Learned from Crash

Mary Pizzimenti 09/11/2013
Less homes underwater in 2013

The number of upside-down mortgages continues to fall nationwide along with delinquent credit card payments. American consumers are demonstrating the lessons learned from the buy-now-pay-later, get-rich-quick days of the first decade of the 21st Century.

CoreLogic’s 2nd Quarter 2013 Equity Report, released today, shows that nationally 2.5 million residential properties returned to positive equity from Q1 through Q2. This means that in 3 months’ time more than 5% of residential home loans were able to reach the surface, though 14.5% of mortgages in America are still underwater.

 Credit reporting giant TransUnion released its quarterly credit card debt and delinquencies report in August and their numbers are positively down as well. The number of delinquent credit card payments fell to 0.57%, a near record low, while average American debt continued to hover just above its all-time low.

The Scars are Healing and We Are Stronger

These numbers from opposite ends of the credit spectrum have a lot to say. American consumers are willing to put in the work, paying their credit cards on time, and continuing to make their mortgage payments as the value in their homes is re-established. This attitude is a stark contrast to the “now now now” voice that seemed to be driving the housing market and consumer sentiment less than a decade ago. Perhaps we are learning from our mistakes.

These are the signs of true economic recovery. Signs that the American public is waking up and deciding to take charge of their economic future instead of living beyond their means in the present. Destructive habits we are seeing less of include overspending on credit cards and failing to make the payments and buying an overpriced home you can’t afford because you KNOW it will be worth more soon. In 2005 the consensus was that you could buy a home and turn a profit on it in as little as 12 months.  Our society believed that you could live the life you WANTED right now and pay for it later because you’d be making more money soon, or because your home would be worth more. The problem was systemic, from credit consumers, to homebuyers, to the lenders. By 2008 it was obvious that this was not sustainable. And now we have been shown the results of unsustainability. Indeed, we have lived through those consequences for the past 5 years.

Infographic: Q2 2013 Credit Card Delinquencies Continue to Fall. Debt Remains Low

One of the most shocking revelations of the TransUnion report is that these delinquency rates are just above the historical low not seen since 1994.  20 years is about the length of a generation and it appears that the Credit Generation is coming to terms with the consequences of overabundant credit while also using it for empowerment. TransUnion’s Ezra Becker, Vice President of Research and Consulting in their Financial Services Business Unit said, “Despite recent improvements in the employment situation, consumers continue to value their credit card relationships as a primary means of liquidity.” We are using credit cards differently than in the past but with a better understanding of its uses and impact. Becker states that our willingness to pay the credit card first shows that “consumers will continue to prioritize their credit card relationships over other credit obligations”, demonstrating an awareness to the varying effects of late payments.

Missing a Credit Card Payment Could Cost You a Lot More than a Mortgage Payment

Credit card delinquencies have a significantly quicker impact on credit rating and, more importantly, on the amount of debt owed. Late payments on credit cards can quickly cause a Default on the credit card which initiates radically high default interest rates as high as 29%. This hastily increases the amount of debt that is accrued each month which soon spirals out of control.

American Consumers are pyaing their credit cards on time

Mortgage lenders, however, are not nearly as reactionary. In many cases, mortgage payments can be missed for several months before eviction even begins or before any damage is done to your credit score. And that certainly doesn’t increase the amount owed on the loan either.

The CoreLogic report attributes the drop in negative equity to rising home prices, which is true. It is also driven by the homeowners who decided that the right move (or in some cases the only move) was to keep making their mortgage payments even though they were underwater. If they didn’t need to go anywhere, why not stick things out and let the market return value to your home. These homeowners are becoming empowered by their patience, as many will now have the opportunity to sell their homes or to leverage the equity they have rebuilt.

This represents a tremendous shift in public behavior and its results will be beneficial to all. Ultimately these two trends are going to mean more homes coming on the market as their value continues to climb out from the crash and new homebuyers are becoming empowered by improving their credit. A more responsible, pro-active, and informed public is the basis for a healthy and consistent housing market and economy.

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The 2013 Nevada County Fair Kicks Off Tomorrow

Mary Pizzimenti 08/05/2013
2013 Nevada County Fair Poster

Nevada County is an area that is particularly well-known for hosting a wide variety of community events throughout the year. Well, it’s time again for Nevada County’s piece de resistance, voted the Best Local Event in Nevada County 12 years in row by the Sacramento Union newspaper, The Nevada County Fair.

The Nevada County Fair opens tomorrow August 7, 2013 for five fun-filled days of animals, rides, contests, and food for the whole family to enjoy. The theme this year is “Under the Big Top” so attendees can expect to see many circus themed attractions mixed in with the usual fare.

Be sure to take the kids down to Cirucs Imagination, where children become instant stars by stepping out of the audience, putting on costumes, and stepping on to the stage to perform in a spontaneous circus. The Zip Line is always a crowd favorite as parents and children alike get the chance to fly across the fairgrounds 28 feet up in the air.

Keep an eye out for the members of Boy Scout Troop 232 who will be stationed at the fairgrounds, selling books of 30 ride tickets for $20, a $10 discount. For other ways to save on admission or ride tickets be sure to visit the Nevada County Fair Website (linked below) to get all the details.

For those new to Nevada County, the fair provides an excellent window in to life in the region. People from all walks of life can be seen at the fair enjoying time with their family and friends. It’s also a great way to encourage children to learn more about animals and even local agriculture.

So grab your family and your friends and head on over to the Nevada County Fairgrounds August 7-11 for the 2013 Nevada County Fair.

Admission is $9 for adults, $6 for seniors, and $4 for kids age six and older.

Nothing says family-fun like the County Fair.

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Placer & Nevada County Housing Prices Continue to Increase, Following Nationwide Trend

Mary Pizzimenti 08/02/2013
Housing Prices in Placer & Nevada County continue to climb

According to S&P and CoreLogic Housing Price Index numbers, home prices continue to show strong growth over the past year with record year-over-year increases in many cities. Some cities are seeing increases as high as 20% versus the same month last year. These numbers are likely to remind some of the “pre-bubble days” when increases such as these were seen for several years in a row. However, you have to look a little closer at the data to see what’s really driving these numbers.

Why Did the Crash Hit Some Cities Harder than Others?

The answer to that question has to do with a number of economic factors, though there are similarities amongst the cities that saw the biggest losses in the crash. The cities that were hit hardest by the market downturn are also the cities showing some of the best growth in value according to the S&P/Case-Shiller Housing Price Indices.

Let’s take a look at three cities that posted large increases in May 2013 versus May 2012. Phoenix saw a 20% increase, Vegas 23%, Miami 14%, and San Francisco had an impressive 24% gain. If we graph these cities over the last decade, it’s easy to see how high prices rose and how far they fell.

S&P/Case-Schiller Housing Price Index DataSOURCE: S&P/Case-Schiller Housing Price Index

When compared to the National average you can see that all three cities showed increases far greater than the National trend. What we see is that homes in areas that experienced rapid growth were the ones hardest hit by the market downturn. Cities like Miami, Phoenix, and Las Vegas all saw tremendous growth in the last decade and were overdeveloped in many cases. When developers in these cities saw the rate at which home prices were increasing they were quick (and careless) in taking advantage of the abundance of inexpensive land.

S&P/Case-Schiller Housing Price Index DataSOURCE: S&P/Case-Schiller Housing Price Index

Homes in larger more established cities like Charlotte, Denver, and Cleveland (see above graph) saw significantly less of a reduction in home values from their peak. These cities often have less physical room for growth with little economic justification for increasing prices and are less likely to suffer from overdevelopment. This means that homes in those cities were more accurately priced than those in cities allowing developers to build recklessly. As a result, they saw less of a reduction of value when the market crashed. Even New York saw a relatively low drop during the crash. These cities are also the ones showing the smallest growth in the report, with New York and Cleveland up 3% over last year, and Denver and Charlotte up 9% and 7%, respectively. Even the slowest markets are seeing increases. CoreLogic reports year-over-year increases in 296 of 384 metropolitan areas with the 20 largest areas all showing increases.

What does this mean for the homebuyer?

The areas strongly impacted by the crash represent a great value. Homes in those areas are likely to be very reasonably priced and are often priced exceptionally lower than when they were constructed. This means homebuyers can get a great deal on a home, or even a luxury estate with every amenity, with confidence the home will continue to increase in value.

Here in Placer County, the city of Lincoln grew at of over 300% in the last decade and was the fastest growing city in the country. As a result, a number of large developments were built in the southeastern region of the city. Many of which offer impressive homes in gated communities at significantly reduced prices.

Do Strong Price Increases Mean We’re Headed for Another Bubble?

The following infographic tracks Housing Price Index by state over the last decade to reveal the beginnings and effects of the housing bubble on U.S. housing prices.

In 2003, housing prices had already been going up for several years and, as the graphic illustrates, and they continued to climb strongly through 2006. It took the U.S. housing market several years of hefty gains to build up enough air to cause the bubble burst we experienced. Indeed this concurs with the CoreLogic report finding that U.S. housing prices are still 26% below their June ’06 peak. Take a look back at the S&P National Housing Price Index to see how far away we still are from the dizzying heights of the bubble.

How much will rising prices impact your mortgage payment?

Even with the price of homes increasing, interest rates are still quite low. The government is doing everything it can to energize the economy and that means borrowing money is cheap. It should be noted that a $10,000 increase in the value of a $500,000 home would represent roughly a $50 increase in the monthly payment with a 4% loan, whereas a 1% increase in the interest rate from 4% to 5% on a $500,000 loan represents a $300 monthly increase in the mortgage payment and over $100,000 in additional cost over the life of the loan. Wow, that’s huge!

It’s amazing how much of a difference 1% can make. Try it and see for yourself using our convenient Mortgage Calculator.

Simply put, the fact that home values are increasing is a great sign. A healthy housing market is one where home values increase responsibly and in response to economic conditions, not one where speculation and questionable lending practices drive home values up rapidly while median incomes are decreasing.

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It’s Still Cheaper to Buy Rather Than Rent in the Sacramento Metropolitan Area & Nationwide

Mary Pizzimenti 07/31/2013

That’s right! Even with increasing housing value it’s still cheaper to buy, pretty much across the board. Home prices have been on the rise in 2013 but rents are still high in California and across the nation. Trulia’s March 2013 Rent vs. Buy Report shows that buying a home in the top 100 metropolitan markets is still less expensive than renting, demonstrating just how expensive renting can be. Trulia’s interactive map allows you to graphically access the report’s results and is quite informative and fun. It shows that even with a loan at 5.5%, San Francisco is the only market where it would be cheaper to rent if you stayed in your home for 7 years.

Rent Continues to Increase Nationwide

So why is it still cheaper to buy than to rent if housing prices have been increasing steadily? Because most people are still renting. The Zillow Rent Index shows consistent increases in rents in California, Sacramento, and San Francisco, among many others, over the past two years. Would-be homebuyers wary of the economy and the housing market are opting to rent. This is helping drive up the cost of renting nationwide. Large metropolitan cities like nearby San Francisco and Oakland have been hit particularly hard by increasing rental prices. It seems like the shadows of the housing crash are still looming over us as buyers’ fears of a second downturn continue to have unexpected effects on the housing market.

Stop Throwing Away Money on Rent

It’s not just the big cities feeling the squeeze. In some cases the average rental price in Placer County for a 2 bedroom unit rivals prices in San Francisco County. While residents of San Francisco may find themselves with no other options, as housing prices remain relatively high in the city, renters in Nevada and Placer County do have another attractive opportunity. With the allure of affordable housing prices, cities such as Roseville, Rocklin, and Granite Bay are likely to see an increase in home purchases as many buyers’ worries are quickly overshadowed by the weight of their monthly rent payments.

Higher rents mean it’s a good time to be a landlord as well. If you are looking to purchase a second home as an investment property, now is an excellent time. With a low interest rate on a mortgage and the ability to earn top dollar from tenant rents, it is easier to see greater returns from an investment property.

Stop throwing your money away on Rent!

Today’s housing market has a lot going for it: increasing rents, record low interest rates, drastically reduced down payments, and (most importantly) reasonably priced homes. The latest CoreLogic Housing Price Index reports housing prices are still more than 20% below their pre-bubble peak. Regardless of what the market is going to do tomorrow, the conditions today are hard to ignore. Going back to Trulia’s interactive Rent vs. Buy map, we can see that with a 4.5% mortgage and five years invested in a home it’s 22% cheaper to buy a home than it is to rent in the Sacramento Metropolitan Area. That is hard to ignore.

The next quarterly Rent vs. Buy report is due out soon. Will average rental prices continue to climb or will increased demand in the sales market finally start to slow the increasing cost of rent?

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