Here are the Bullet Points
Lots of inventory coming on the market in the first quarter Jan/Feb/Mar.
Values are the highest they have ever been and will continue to go up-up-up in California!
Rumor has it the Fed plans to lower interest rates six times in 2024 speculations is likely 3/4 point and in 2025 we should see them drop another full point. If this happens it will be great for that monthly mortgage payment!!!
If you are looking to buy in the next 6 months to a year, get prequalified now and consider buying sooner than later. When those rates come down it's going to be very busy and competitive market and that means values will go up.
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It's not about timing the market, it's about time in the market.
Prop 19 allows homeowners who are over 55 years of age, disabled, or victims of a wildfire or natural disaster, to transfer their lower assessed property value of their primary home to a newly purchased or newly constructed replacement principal residence up to three times (or once per disaster). The tax base may be transferred to a property located anywhere in the state. Also under Prop 19, a child or children may keep the lower property tax base of the parent(s) ONLY if the property is the principal residence of the parent(s) and the child or children make it their principal residence within one year.
DSCR Loans - Want to buy a rental but don't show any income? This loan will use the income the rental property makes to qualify you. This is great for buyers who write off a lot of their income.
Mortgage rate buy downs. - Lenders are giving 2% off rates in the first year and 1% off in the second year and this is paid for by the seller. Talk to your lender about 2-1 Mortgage Buy-Down.
New Investment Property Lending Law - Fannie Mae will be implementing new guidelines that allow for a Loan-To-Value (LTV) ratio of up to 95% for 2-4 unit properties. That means you only need to put 5% down and the property income will count toward the loan (not unlike a DSCR Loan). Keep in mind you do need to live in one of the units for this type of loan.
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