California and Florida shared a lot of comparisons during the current housing boom-then-bust cycle. Both had a multitude of new buyers brought in by easy loans. Both had current owners hooked on upgrading and refinancing with high risk loans. And both had builders building like there was no end in sight. And when the bubble burst, both lead the nation in unsold new homes, mortgage defaults and lost equity due to declining prices in homes.
California has pulled ahead in the recovery however. During the last year or so, our market has begun to recover. It is still weak and fragile but in better shape than many. Florida remains on the critical list. Some experts believe this is due largely to the foreclosure processes use by the two states. As reported here recently, California’s process excluded us from some of the foreclosure interruptions and other messes that plagued other states.
Ours is the less complicated, non-judicial method, keeping things out of the court room. Some argue that going before the judge offers better protection for the homeowner. Others claim that this is simply an unnecessary delay (sometimes for months) and expense. Like 22 other states (the ones in the news lately), Florida requires that the process go before the judge.
Mark Zandi, chief economist for Moody’s Economy.com credits this difference as a major player in the improver recovery rate for CA.
California home prices have stabilized and even increased since the big bust. Sales numbers have increased, though dipping a bit after the end of the tax incentives.
We have seen prices in the Yuba-Sutter area increase in recent months. This seems to be a continuing trend. Yes, we still have foreclosures coming onto the market, short sales to get through, and many homeowners with mortgages that are in access of their home’s value, but the recovery is under way!
For those that can, (credit is still very tight) this is a GREAT TIME TO BUY. Email or call us today to find out if you can get in on the recovery. Buyer, seller, needing help, or needing to get out…we have experts to help you NOW. Email or call Yuba Sutter Homes and Loans (530 315-2808) today. Know your options. Make an informed decision. Begin your own economic recovery now!