With all the news about home sales improving throughout the country, it's important to point out that this may not be a sharp “V” recovery with a sudden jump in prices or units. In all probability what we will see is a long “L” shaped broad base recovery, where there will most likely be very small gains in overall price for quite some time. In our San Francisco Bay Area market, this is shown in what we have been seeing for several months: entry level prices going up, and high end prices coming down.
Our office reports that the low end is extremely competitive. There are lots of unescorted potential clients visiting open houses, and morale is good. Los Altos reports the market is picking up with the normal Fall home buying season....but the lower end still has the most activity.
Now the good news for buyers with less down payment...We now have Mortgage Insurance at Princeton Capital, our in house lender, to do 90% loans up to $729,750 and 95%, to $417,000.
This is huge, since standard MI will only go to 85% Loan to value other than FHA.
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