Repeat Home Buyers and Real Estate Investors are Jumping into Stockton Real Estate
Repeat buyers and real estate investors are over taking first time buyers for the first time in over three years. Prices are trending up for a typical multiple listing in Stockton and Lodi. Homes for sale in California have shown a 13 percent increase in the purchase price of homes for sale in the last year. As a result of the re-emergence of investors and repeat buyers the competition for bank owned foreclosure homes and short sales in Stockton and Lodi are being bid up. Multiple offers are common place and homes selling in 1-10 days are becoming standard in the real estate market in San Joaquin County.
It is estimated 58% of home buyers are repeat buyers to 42% first time home buyers. Statically this is a 10 percent increase over the same period last year. This trend points to a recovery in the housing market. This should be an alert for the first time home buyer to seriously consider buying a home before the market becomes over heated. There are plenty of opportunities and with the interests rates for loans the lowest since 1971 approximately 4.7 percent for a 30 year mortgage.
Many areas in Stockton and Lodi, sellers are receiving 95 percent to over 105 percent of their asking price with 52 percent of multiple listings selling in less than 10 days. Investors and repeat buyers have typically led the charge to recovery in the real estate market. Many investors are turning their IRA accounts in to self directed IRAs and buying properties for cash and earning much more than they can in a typical stock or money market investment.
This is good news for homeowners wanting to sell their homes. While the market is in the first stages of recovery there is light at the end of the tunnel. The smart real estate investor and future home buyer jumps into the market now when there is a clear upside rather than like 5 years ago when prices were at their peak and we know what happened then; their real estate values crashed and burned. Investors can realize a positive cash flow from rental income and also realize appreciation in the future. The future for Stockton Real Estate and Lodi Real Estate is looking much brighter.
Hugh Lilly has been helping investors, home buyers and sellers navigate the real estate market for almost thirty years. He can be reached at 209-479-9222 or visit his web site at www.hughlilly.com or e-mail thelillyteam@comcast.net for more information.