First Time Home Buyers Moving In

Not too many years ago, first time homebuyers were pretty much put out of the market when prices soared, however, with the recent drop in new and existing homes first time homebuyers are now in the lead.

First time homebuyers especially in California are out looking for their dream home. Prices have fallen, interest rates have fallen, and there are many homes on the market. This gives the first homebuyer a ray of hope of affording a new home within their budget.

Yes, it is a buyers market all across America especially for buyers that can meet higher lending standards. Real estate agents are beginning to notice more first time buyers, which is a relief to many that have been waiting for a change.

In California, 33 percent of households can now afford to purchase an entry-level home compare to only 25 percent one year ago as reported by the California Association of Realtors.

During the fourth quarter of 2007, a report by the California Association of Realtors showed that a home priced at $411,170 with an adjustable interest rate of 6.21% and a 10% down payment could be purchased by a household with a base income of $82,000. The monthly payment during the fourth quarter of 2007 for this example would have been $2,740, which included taxes and insurance.

The most affordable region in California at that time was the High Desert region with Sacramento coming in a close second. Monterey and Santa Barbara were the least affordable regions.

For San Diego County during the fourth quarter of 2006 the percentage of households that could purchase an entry level homes was at 23%, the third quarter of 2007 showed only a small increase at 24%, however, during the fourth quarter of 2007 the percentage raised to 31%.

The Housing Affordability Index throughout the US is at 65 with the entry-level price for the fourth quarter of 2007 was at $175,270, which put the monthly payment at $1,170 including taxes and insurance with a minimum qualifying income at $35,100.

In California, the Housing Affordability Index is at 33 with the entry level price for the fourth quarter of 2007 was at $411,170 270 which put the monthly payment at $2,270 including taxes and insurance with a minimum qualifying income at $82,200.

In San Diego County, the Housing Affordability Index is at 31 with the entry-level price for the fourth quarter of 2007 was at $444,480, which put the monthly payment at $2,960 including taxes and insurance with a minimum qualifying income at $88,800.