Steepest Price Declines Fall in California Cities
According to the National Association of Realtors, the median price for homes in the United States dropped an average of nine percent from last year. In addition, a third of all home transactions involved homes with mortgages in default.  Unfortunately, three California cities took the spotlight as having the worst decline nationwide. San Bernardino, Sacramento, and San Diego all suffered losses greater than 35% in value.

Bargain Hunters Eyeing the Worst Hit Markets
With foreclosures and mortgage defaults taking its toll on U.S. home prices, bargain hunters have wasted no time. Particularly in the hardest hit markets, some realtors have started seeing multiple offers on such properties. Multiple offers would usually be an indication of market strength and give hope to a “bottoming” of the housing market. However, analysts agree that while mortgages have suffered because of toxic loans and risky lending, the problem of unemployment and the economic downturn will continue to take its toll on home prices.

For those who are curious about these bargain homes, buyers have been exploring the routes of short-sale properties, foreclosures, and REOs in an attempt to purchase below market valued properties. As for financing, FHA has recently filled the credit void, while some bargain hunters or investors save enough capital for larger down payments.

Mortgage Applications For Residential Home Loans Decrease
According to the Mortgage Bankers Association application index, home loan applications for purchase and refinances fell 6.2 percent. The individual gauge for purchases fell 13 percent, while their refinancing gauge rose 2.6 percent. This translates to a 49.9% of total applications seeking a refinance, compared to the last statistic of 45.5%.  Despite a decline in recent mortgage rates, most individuals are simply unsure of the housing markets right now. In addition to their studies, home builder’s confidence fell to a record low, while building permits fell to its lowest levels since 1981.

It looks like it’s going to be a pretty tough Christmas, but one thing worth pointing out is the popularity of these bargain homes. It’s no secret that prices have been falling here in California, and many are taking advantage instead of sitting on the sidelines. If you were in the market for a home, now could be the most affordable time to buy. Of course, once you decide to step foot in this market, you’ll see why people are going crazy trying to time this “bottom”. The best thing you can do is make sure your finances are in order so that you’ll be ready when that time does come.

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