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We're all aware of the desperate state the U.S. economy is in right now.
Jobs are being lost at record rates, big name companies are going belly up,
and real estate prices are at their lowest prices in decades. Though what all
this means for the future can be harder to say than the name Penetanguishene,
real estate agents will quickly tell you that if you're a potential first
time homeowner in Modesto California, there may be no better time to buy than
now.
Why, you ask? The answer is foreclosures. A terrible word for any homeowner
to hear, but Americans from Leaside to Fort Lauderdale are becoming more and
more familiar with. On the flip side, what this means for homebuyers is savings
by the truck load. Foreclosed properties tend to sell much less than average
homes because the owners are focused on making enough money to repay their creditors.
Though this means there's little or no room for negotiation, the seller
will generally list at lower prices because time is of the essence. Sadly, there
have been nearly 4,000 foreclosures in Modesto recently, making up the majority
of the sales for this year.
On average, Modesto homes are currently listed at around $265,000, a drop of
27%, substantially less than any lofts Toronto has to offer. The median sales
price has dropped much more dramatically over the last year, down 46% to $105,000.
Though the number of sales in the city has increased only marginally from last
year's numbers, these trends show that new homeowners are spending far
less now than they would have.
For first time buyers, the timing couldn't be better. These low Modesto
prices, coupled with low mortgage rates, means that the cost of investing in
a new home won't break your budget. Just imagine how much more you could
save with the discount offered in the Sutton Members Program? If you’re
in a sound financial situation and are interested in the Modesto area, consult
a local real estate agent about what's available.
Another attractive feature of the current Modesto real estate market is its
comparison to surrounding cities. Though the average listing price is far greater
than that of surrounding Salida and Ceres, $174,000 and $234, 000 respectively,
it's much more reasonable than the average price of the next major nearby
city, Manteca, which is running at around $334, 000. For those on the East Coast,
the average listing price in Modesto is almost identical to those of homes
in Hudson Valley New Hampshire.
What isn't known for sure is just how long these trends will last. The
current real estate market is as unpredictable as the weather, and critics are
divided. Some say that prices will rise again by the end of the year, some say
they'll continue to drop. All we can say is take your chances while you
have them, because you'll never know when they'll come around again.
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