Reasons to Invest in Rancho Cucamonga, California Real Estate Today

Sales prices of homes in Rancho Cucamonga, California and other nearby cities have dropped tremendously in comparison to last year. Builders of new homes are offering huge incentives to buyers. The FEDS have dropped the interest rates another quarter point. Investors & buyers now have the upper hand.

1. The recent FED rate cut.
As of December 11, the FEDS have cut the interest rate a quarter of a percent. This may seem like a small number but if it can calculate to tens of thousands of dollars in savings to the buyer who takes advantage of the lower mortgage resulting from the reduced interest rate. Purchasing a home with the lower rate can prove to be a wise move in the Real Estate game.

2. The increased inventory of seller owned property.
Unfortunately, many homeowners can no longer afford their homes due to the rampant number of ARM loans that recently went adjustable. Therefore, many homes are on the market that are being sold as a short-sale or with little or no profit to the sellers. The increased inventory gives the buyer and investor the opportunity to look at a wide range of homes before targeting on a house to place an offer on.

3. The flexibility in negotiation.
Sellers no longer have the upper hand as seen before in prior months in the Real Estate Market. They must come up with creative strategies to attract buyers to purchase their home like paying for buyer's closing costs, providing a pre-home inspection to the buyer, and/or repairing miscellaneous items in the home that could have slipped by the buyer in the previous market.

4. The lower comparable sales prices.
With sellers needing to sell and the increased amount of lender owned properties making their way into the housing inventory, the price of homes in the Rancho Cucamonga have dropped considerably in comparison to last year's figures. For the week of 12/05/07 thru 12/12/07 in Rancho Cucamonga, California, a total of only 4 homes sold with an average $415,817 in 95 days. Last year during the same week, 34 homes sold with an average price of $577,621 in 56 days in that Southern California city (MRMLS). In Rancho Cucamonga alone, the average price dropped over $161,000.

This means buyers are able to purchase real estate at discounted prices, thus, giving them the advantage in gaining long term equity as the Real Estate Market continues to 'normalize.'

5. The increased inventory of lender owned property.
The misfortune of homeowners who have undergone foreclosure has increased the housing inventory with lender owned property. These properties were not able to sell during the SHORT SALE period. Rather than hang on to an empty house, the lenders would rather minimize their losses by selling their properties even at loss by lowering their price. Therefore, foreclosed properties can be a great buyer source to scout out a Real Estate Investment.

6. The increased influx of former home owners looking for new affordable rentals.
Investors can be the heroes of the Real Estate slump by providing the rental homes for displaced home owners who have lost their homes because of a foreclosure. Finding tenants to occupy a rental may be easier now with the increased number of individuals in search of rental properties.

7. Builders are giving huge incentives to buyers.
What a great opportunity buyers have in securing a brand new home now. Builders are now willing to give incentives to entice prospective resident buyers to purchase. Some incentives include no closing costs, free home owner association fees for a year, free state of the art appliances, $30,000 for home upgrades and/or free mortgage for 6 months.

Consult with your Realtor and begin to strategize how you can take full advantage of the Rancho Cucamonga, California Real Estate Market and it's surrounding communities.