(Newswire.net — September 23, 2014) Modesto, CA — The longer buyers wait to invest in California real estate the greater the risk of losing great and affordable property opportunities and renters should act to tie down new, long-term contracts now – those are the stark warnings issued this week by one of California’s leading land and property brokers.
In places like Modesto, CA, more properties are being sold than at any time in the past few years despite tighter mortgage lending standards and stagnating household incomes.
With the number of foreclosures slowly falling, many homeowners remain under pressure to meet their mortgage commitments, and with new home sales and rental figures rising by almost double the number compared to the previous 12 months prospective buyers are welcoming a degree of stability back into the housing market. First time buyers and existing home owners are moving up the property ladder; investors are buying and renovating units, and there’s a steady supply of renters ready to pay the going rate.
John Brasil, broker and proprietor of Five Star Property Management, a full-service property management company that serves the San Joaquin Valley, explains the rationale behind his warnings: “Now, more than at any time in the past five years, there are significantly fewer homes in Stanislaus County that are considered affordable for median-income families. Two years ago it was common to find homes in the $150K range but not now. A recent report from Metrostudy Analytics puts the average price for newly sold homes at $295,480 up from $194,375 a year ago. And the average mortgage on new homes has increased to $255,433 from $158,667 over that time.”
Brasil continues: “Not that long ago renters could purchase a home and their monthly mortgage payment would work out lower than the average rent. As increasing home prices continue to gather pace this is no longer the case. This past year alone purchase prices have jumped 25% in some parts of California which means more prospective buyers will have to rent. This is great news for investors whether they’re purchasing their first rental property or expanding their real estate portfolio.”
“The other trend we are seeing is an influx of Bay Area renters who are moving into the Valley in an effort to lower their expenditure and escape their rapidly increasing rents.”
“With all the forecasts in real estate showing a continual climb in price, buyers who act quickly will be able to secure affordable properties as well as a long line of potential renters. The average rents and subsequent yields on rental properties are growing too. One of the latest reports from Reis, a leading provider of commercial real estate market information and analytical tools, states that rents are rising in 79 US metro areas with increases of between 4% and 6% common in the most popular places.”
“Of course, if you are looking for a property to rent, the flipside of this particular coin is that you may be facing rising prices so it’s imperative you act fast. At Five Star Property Management, we work with renters as well as investors so we know the difference a broker can make when you are looking to source and secure your ideal tenancy. Whether you use our services or not, we certainly recommend you get professional help in such a booming market. That way you can rest assured your rental will be governed by a fair contract.”
For further editorial information, digital photography or to arrange interviews please contact John Brasil via info@homesbyfivestar.com
http://www.homesbyfivestar.com/