California saw the third-lowest yearly housing permit total and the worst yearly total on record for single-family units in 2011, according to the California Building Industry Association (CBIA).
CBIA said a total of 47,015 permits were issued statewide last year for new homes, apartments, condominiums, and townhomes, up 5 percent from 2010 when 44,762 permits had been issued. The 2011 total still was down 28 percent from 2008, which had held the distinction of the third-lowest total on record with 64,962 permits issued. Records began being kept in 1954 with the lowest yearly total set in 2009 with 36,421 permits issued.
According to statistics compiled by the Construction Industry Research Board (CIRB), homebuilders pulled permits for a record-low 21,420 single-family homes in 2011, down 16 percent from 2010. Multifamily permits totaled 25,595, up 33 percent from the previous year.
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Building permits for single-family homes rose 1.8 percent in December to a rate of 444,000 units compared with November, according to a joint release by the U.S. Census Bureau and the Dept. of Housing and Urban Development. Single-family housing starts rose 4.1 percent to a seasonally adjusted annual rate of 657,000.
An estimated 611,900 housing units were authorized by building permits in 2011. This is 1.2 percent above the 2010 figure of 604,600. Approximately 606,900 housing units were started in 2011. This is 3.4 percent above the 2010 figure of 586,900.
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- In coming weeks, federal policy makers could roll out pilot programs to further test the concept of renting out single-family homes.
- There are two different types of programs that officials are likely to consider. Under the first, the Federal Housing Administration could sell properties in bulk to investors who agree to rent them out.
- A more likely option for Fannie Mae and Freddie Mac would be to set up pools of properties in which third-party investors would take a stake. Investors could be responsible for handling maintenance and day-to-day operation of the rental pool, with Fannie and Freddie sharing in some of the returns.
Read more about the pilot programs at http://blogs.wsj.com/developments/2012/01/12/six-questions-on-foreclosure-to-rental-programs/.
Lower home prices and interest rates led to an increase in home affordability in the third quarter, the CALIFORNIA ASSOCIATION OF REALTORS® reported.
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- The percentage of California households that could afford to purchase a median priced home of $292,120 rose to 52 percent in the third quarter, up from 51 percent in the second quarter.
- C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state.
- Home buyers needed to earn a minimum annual income of $61,530 to qualify for the purchase of a $292,120 statewide median-priced, existing single-family home in the third quarter of 2011. The monthly payment, including taxes and insurance, would be $1,540, assuming a 20 percent down payment and an effective composite interest rate of 4.63 percent.
- Regionally, housing affordability rose in most counties in the San Francisco Bay Area but was down in Los Angeles County and Fresno County. At 77 percent, San Bernardino County was the most affordable, while San Mateo County was the least affordable, with only 25 percent of households able to purchase the county’s median-priced home.
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http://www.latimes.com/business/realestate/la-fi-housing-affordability-20111111,0,6083426.story
Summary: Investing in real estate in El Dorado County could be great idea if you are looking for a new home or are a great sports enthusiast. If other criteria like school district and services are satisfactory for the neighbourhood you plan to buy in then attractive prices are available on new homes especially single family homes. If you are a golf enthusiast the owning property in Sacramento would give you access to some great golf courses and clubhouses in the country. Use the services of reputed brokers and buy only what your budget permits.
If you are looking to invest in real estate El Dorado County then like all property investments you need to check on some key trends, features of the place where the property you plan to buy is located in and take stock of the reasons why you are investing.
Whether you are a first time or seasoned buyer, buying a home or other real estate in El Dorado County, budget must be the first priority when deliberating on buying real estate. One of the ways to assess how much you can afford to pay for something like a home is by working backward on the expenditure. Calculate what you’re paying for the rent. From this assess how much you can actually afford to spend monthly for a home.
If you are going to take out a mortgage for your home or real estate in El Dorado county then ensure you avoid a bad mortgage with a high interest or ones which will require you to pay more than what your current rent is. Choose mortgages which include tax and other expenditure and make sure your mortgage payments are safe.
The location of your real estate in El Dorado should be the next priority on your list. Neighbourhoods, school, availability of maintenance services and other such details about a place may look trivial at the first glance especially if you really liked the property but they are crucial factors that cannot be ignored.
Sacramento including El Dorado have seen a rising trend in single family homes in the past couple of years with just two percent of sales being devoted to luxury homes. New homes continue to be amongst the best value real estate in El Dorado county with new construction having to face a stiff competition from the large amount of bank owned and short sale property that have been put on the market. Try to buy while these conditions last.
If you are an ardent sports lover then investing in real estate in El Dorado County could give you several opportunities to take up your passion for sport again. Sacramento has some of the best golf courses in the country. With 17.9 square miles of land along the western boundary of El Dorado County, golf lovers have plenty of space and sunshine. The Serrano Country Club is a prestigious golf course in the El Dorado area. Apart from amazing golf courses, there are club houses, great sights to enjoy and a vibrant community that celebrates strong American traditions and you can be part of.
You could enlist the services of a broker, check online for properties or visit El Dorado Hills real estate or El Dorado Hills homes for sale to obtain listings of real estate in El Dorado County.
Written by Brodie Stephens
www.brodiestephens.com
