Affordability is key to homeownership
Guest opinion
By Kevin Panet

Many people believe that homeownership is out of reach, not realizing that it might be closer than they think.

With today's "buyer's market" and a growing array of financing programs available, it's easier for first-time home buyers and for those who may be looking to trade up.

"Many prospective home buyers have been playing a 'wait and see' game, sitting on the fence, trying to decide if this is the time to buy," said Luis Zambrano, a Realtor with Aviara Real Estate and a Moorpark resident.

In May, the median price in Ventura County fell 1.6 percent to $590,000 as sales dropped 25 percent from a year earlier. However, in June home prices increased 2.1 percent statewide.

Luis said, "For those who can afford to buy, now is the time. They need to act quickly if they are going to get the better deals."

According to Christie Neal, a Realtor with Prudential Real Estate in Fillmore, "There are currently hundreds of homes for sale in east Ventura County. There hasn't been a better 'buyer's market' in years. The selection of homes is outstanding."

So, has the housing market hit bottom?

According to David Lereah, chief economist at the National Association of Realtors, "With fingers and toes crossed, it appears that we have hit bottom in the existinghome market." The trade group's official forecast calls for a 1.2 percent drop in sales of existing homes this year and a 1.5 percent increase in the median price.

While home prices have come down for homes in the $300,000 to $600,000 range, that trend is not expected to continue. "We are seeing a leveling out of home prices," stated Realtor Vickie Howell with Coldwell Banker in Simi Valley. "Sellers are starting to have more realistic expectations of what their homes should be selling for. We are now seeing fewer homes being put on the market with unreasonably inflated values."

The other half of the homeownership equation is financing. According to Steve Minor at Sabre Mortgage, "We are still able to offer up to 100 percent financing for qualified borrowers. Newer loan programs have allowed us to lower monthly payments by extending loan programs up to 50 years."

The challenge is to properly plan the mortgage so that homeowners are able to keep their home.

"One size does not fit all. A homeowner might desire a 40 or 50year loan to reduce monthly payments and build equity," Minor said. " Another might qualify for interestonly payments, further reducing their monthly housing costs. For self-employed home owners, an option ARM loan can be a very useful program."

Clearly, financing options should be based on the homeowner's long-term financial plans, as well as desired lifestyle.

While it's true that it's a bad market for investors trying to make a quick buck, it's a great time for first-time home buyers and those desiring to move up. With so many homes available and with a plethora of financing options being offered, there hasn't been a better time to buy in years.

While interest rates are still at historic lows and home prices have begun to plateau, this is not expected to remain the case for very long. Between now and the fall might be the best time to purchase a home for many years to come. It's important to keep in mind that historically, homes always go up in value. It's a long term investment with great returns.

Panet, a loan consultant with Sabre Mortgage in Moorpark, is a member of the California Association of Mortgage Brokers and is licensed by the DRE. Contact him at (805) 523-8760 or Kevin@ SabreMortgage.biz.