These loans are still popular to consolidate high interest rate debt into a loan with lower, often tax deductable payments. The best deals are those with rates at or near prime rate(now 8.25%) with minimal closing costs,if any, and low annual fees.
Rents are up in most markets caused by increased demand and a scarcity of homes available for rent.Many apartments have been converted to condominiums and have left the rental pool. Before setting the rental amount on your investment property,check the classified advertising section in the paper local to your property to see what others are renting for and what else is availble. You could be pleasantly surprised.
After five years of a booming real estate market, sales prices have begun to succumb to the unsustainability of double-digit annual increases. Many potential first-time homebuyers have dropped out of the market due to the high prices.These new high home price levels were caused by the influx of many new investors as well as loans that allowed people who could not afford what they were buying to get into the market. The frenzy was fueled by easy access to 95%-100% financing and regular news reports of skyrocketing home prices. While the inventory level of unsold homes has begun to drop,sales volumes remain flat after absorbing the decline we have experienced in 2006. In some markets the low-end will suffer due to increasing foreclosure activity, ultimately dragging down prices at all levels. Fewer buyers are in the hunt,partially due to the holidays and to uncertainty about where prices are going.
Fixed interest mortgages rates have dropped by a full 1/2 percent since last May, now near 6%. Variable home equity loan rates have stabilized at about 8%. While fixed rate loans haven’t been this good in 2 years, adjusted rate loans continue to worry homeowners since each rate adjustment brings higher payments. Many homeowners have been taking action to dump their adjustable rate loans for fixed rate loans. On the economic front, productivity in the US has been increasing at an astonishing pace due to technological advances, more than offsetting the adverse affects of off-shoring of manufacturing. The only dark cloud on the horizon is the new housing starts have dropped, with construction workers moving from residential to commercial.
Enclosed is an October 2006 Article on CNNMoney.com and published in Business 2.0, November 2006 edition.If you have any questions regarding this report, please contact me. To See this PDF File Click Here:San Luis Obispo ranked #6 as the country’s strongest real estate markets.
Enclosed is a spreadsheet which shows the current market condition for San Luis Obispo County. If you have any questions regarding this report, please contact me. To See this PDF File Click Here: San Luis Obispo Residential Sales Market Report for August 2006
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