Let's face it. Anyone who's not living under a rock knows that America is hitting one of the biggest economic slumps that it has seen in at least two decades. And we all know that a good part of the problem was with mortgage and housing sales. From Red Hook real estate to that here in California, we've all seen everything from housing to gas prices drop. So, when looking at the picture of Modesto's housing market, everything must look depressing and dismal, right? Wrong! With changes in the health of the economy, the truth is that there is still always an advantage to be found. In this article, we will go through all of the problem spots and opportunities in the Modesto real estate market.
We'll start with the bad news. The current economy has hit a lot of people very hard and with a new unemployment rate reaching 12% and subprime mortgage rates causing a great deal of foreclosures, there are a lot of homes on the market. Out of the 5,411 homes on the market in August of 2009, 5,154 of these homes were due to foreclosures. This number is quite high even in comparison to other areas suffering from economic difficulties, all the way up to Bowmanville real estate.
While there are still a number of analysts who believe that the worst is yet to come, there are others who say that housing prices will start to see a rise in the coming months. The current average price of a home is $173,349, as of August 2009, and while California has seen a huge decline in home prices over the last two years, the trend seems to be evening out. California homes seem to have taken more of a hit than places like Toronto real estate, but are now showing numbers that are more in tune with the rest of the continent.
Now, here's the good news. Currently, thirty-nine percent of the homes in Modesto are occupied by renters. This is a whole market of potential first-time homebuyers who could be taking full advantage of the current market conditions. This is definitely a buyer's market across the board, from Modesto homes to London Ontario condominiums and those with a solid income should think about making the move into owning their own home. While it may seem ruthless, foreclosed homes are sold at a fraction of their value, as the bank simply wants to recoup their investment and doesn't care about making a profit. This is a golden opportunity for those with the means to buy now and hold onto the property through this difficult time, until prices rise again.
If you're in the seller's seat, you should also consider marketing to those relocating from other states and out of the country. As was previously mentioned, California took a larger hit than many during this downturn. Someone looking for that sunny paradise from Brampton houses could still get a good deal with you still keeping your shirt. They will be arriving with a little more in their pocket from a sale up north.
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