Palm Springs Real Estate Information

As I read the following paragraph from the online Realtor magazine I thought this was pertinent information for Buyers as well as owners who may be looking to refinance if they have equity in their home.

Average interest on long-term mortgages slid to a record low for the eighth time in nine weeks and could dip more. Freddie Mac reports that 30-year fixed loans averaged 4.36 percent this week, down from 4.42 percent a week ago; the 15-year fixed rate fell to a new low of 3.86 percent from 3.90 percent; and adjustable-rate mortgages were also below 4 percent.

The Mortgage Bankers Association's Michael Fratantoni said the group expects that rates "will begin to rise as the economic situation improves along with jobs."

Source: Pittsburgh Tribune-Review, Sam Spatter (08/27/10)

With the Labor Day Holiday just around the corner, I found these safety tips presented by Rismedia. 

This Labor Day weekend millions of drivers will take to the highway for one final summer getaway, making it one of the busiest holiday travel weekends of the year.

America's Road Team Captains, elite professional truck drivers with millions of accident-free miles, are offering advice on how to navigate through highway traffic and arrive at your destination safely. Tips include:

Prepare your vehicle for long distance travel: Check your wipers and fluids. Have your radiator and cooling system serviced. Simple maintenance can prevent many of the problems that strand motorists on the side of the road before you leave your home.

Plan ahead: Before you get on a highway, know your exit by name and number, and watch the signs as you near the off-ramp. Drivers making unexpected lane changes to exit often cause accidents.

Do not cut in front of large trucks: Remember that trucks are heavier and take longer to make a complete stop, so avoid cutting quickly in front of them.

Use a map or GPS: Surprisingly, few motorists plan their routes, even when driving through unfamiliar areas. Knowing the road is essential for safe driving - it allows you to anticipate lane changes and avoid
a panicked search for directions.

Leave early and avoid risks: Leave early and allow for delays in your travel schedule. Know your limitations: don't drive when tired, upset or physically ill.

Be aware of trucks' blind spots: When sharing the road with large trucks, be aware of their blind spots. If you can't see the truck driver in his or her mirrors, then the truck driver can't see you.

"Around Labor Day Weekend, traffic increases as motorists seek that final summer trip before the kids go back to school and the weather turns cool," said America's Road Team Captain Greg Nauertz. "Additional motorists make safe driving habits all the more important. Nothing beats planning, preparation and patience."

Have a wonderful and safe holiday, and if you are coming to the Palm Springs area to look at property, please give me a call and I will be happy to be of service.

Last week the Palm Springs area was hotter than our usual temperature reaching 114 degrees with some humidity. It was hot!  This week-end we returned to Paradise with highs in the 80’s and cool cool evenings. Now I am looking forward to riding my quarter horse, Fancy Face!

According to the First-time Buyer Housing Affordability Index published by the California Association of  Realtors, 64 percent of first-time buyers could afford to purchase an entry-level home in California in the second quarter of 2010. 

The minimum household income needed to purchase an entry-level home ($266,750)  in California was $43,960. This would include an estimated monthly payment of $1,470 including taxes and insurance.

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.