Buying a home can get more difficult depending on the current inventory. Today we are watching as that inventory is running out. The way we deduce this is by something called the "Absorption Rate". That is the equation applied to the current Santa Clarita housing market. You take the current rate of homes that are selling, then you take the current rate where listings are being added to the local Santa Clarita Market and do some very simple math - that gets you to the "Absorption Rate". A healthy market is 8-11 months. In a constrictive real estate market - like ours during today's post - we are at about 1.5 months to zero homes on the market for sale. We did a video and blog post explaining the "more of" absorption rate in the real estate market. Head over to the Top Santa Clarita realtor website and type in the words "Absorption rate" into the macBoX for more detailed intel.
Buying Santa Clarita real estate is tempting but it is more important than ever to stay within your means. The real estate market of years past inflated at a quick pace with buyers snatching up homes like there was no better investment. In the end those that bought at the height ended up taking a hit when the balloon burst. Today, real estate is picking up again as exceptional affordability levels are drawing buyers in from the sidelines.
The lesson learned from the past is to buy that which you can afford. A golden rule of real estate in the Santa Clarita Valley once forgotten and now remembered. So, take a good look at your finances and examine your savings, your income, and your employment among other details. Do not rely on a lender to tell you what you can afford, rely on yourself and your own research to know how much you can afford for monthly payments.
The other essential element of home ownership is having money set aside for unforeseen incidents and repairs. Murphy’s Law is never more present than for homeowners and being prepared is part of the game. This being said, home ownership is a rewarding venture and if you can afford to buy a home you should realize that there has rarely been a time with so much opportunity.
Remember - the term "mortgage poor" was not developed by someone that was not feeling the pain associated with buying a home that was more than they could afford. It was developed by someone that did not listen to their own personal finances. Be Safe - Search well and subscribe to our Bi-Monthly Santa Clarita real estate updates by filling in your email below this text. Talk soon and join us at our Main Santa Clarita realty website.