A recent report on the affordability of homes in California was released and shows that more people can now afford to buy a home. Affordability has to do with the price of homes available and the interest rates that people can get on home loans. We are now at the record level for affordability that was seen in 2009.

Existing home owners should also be happy that affordability is up, because it means that more people can afford to buy. Hopefully this will lead to fewer properties on the market and fewer vacant units. More people in homes means better neighborhoods. So, in the long-run the current low prices will rebound and more homes will be occupied.

The new lowest priced SFR in Granada Hills, is on Chatsworth St. near Haskell. The listing states that it legally has two bedrooms, but it has an additional bedroom that is not permitted and a guest house.

This may be a good property for an investor who is willing to upgrade things and get permits in order.

Square tiles in an offset pattern.

Traditionally, 12 inch square tiles are set in a grid pattern. It is also common to see rectangular tiles in a brick, or offset, pattern. A design that is becoming more common, and a nice diversion from the traditional, is using square tiles in an offset pattern.

We used this offset pattern in the Northridge remodel we are working on. It turned out very nice and, I think, provides a more interesting look than the traditional square tile in a grid pattern. This image shows the offset tile and the replacement sliding window in the background. More about the replacing windows later.

Low priced home in Northridge

lowest priced single family home in Northridge, as of January 30th, 2012, is on Malden just west of Reseda. This 2 bedroom/1 bathroom home is available for only $250,000, but there is a garage conversion, according to the listing.

In some cases these types of garage conversions can be unpermitted and may make financing difficult. Some Building departments have issues with garage conversions and require work to be “un-done” to return the property back to its original state. In other cases they require plans and issue permits if everything is up to code. However, in most cases it is not that easy. Therefore it is critical for buyers to consider the potential costs and check with the building and safety department to get details on whether something is permitted or not. You can get details about properties in Los Angeles through the online activity reports provided by LA Building and Safety, but you should still go down to the LADBS office and confirm everything.

This type of organization helps users of vegetables, you and me, and farmers. The users know that they are getting fresh season fruits and veggies that aren’t shipped in from around the globe. The farmers know that they have buyers for their products and are able to deliver fresh food without the risk of changing market prices. Local Harvest has more detail about the many other benefits of CSA’s.

The link to real estate is that people are now seeking homes that are near CSA sites. This is true for buyers and renters. So buyers and investors should check on whether there is a CSA nearby.

There may be a change on the horizon. While most people do not expect home prices to shoot up any time soon, there may be more stability and possibly some minor increases in prices. This is a result of the lower levels of available homes. A recent article in the Wall Street Journal stated that inventory levels dropped by an average of 22% nationwide. Of course the amount of change in the housing inventory varies depending on the city and state, but the trend is fairly evident. If this trend continues, it should be expected that prices would increase, even if it may be slightly.

Maybe we are on the road to recovery???

To gain an understanding of what this low interest rate means, you have to think about what it translates into based upon a particular loan amount. To keep things simple, I will use a loan amount of $100,000 for this example. At a fixed interest rate of 3.88% on a 30 year loan, the payment is $471 per month.

If you compare this to the 7.00% interest rate in January of 2002 (10 years ago) you would have had a payment of $665 per month for a $100,000 loan.

Going back even further, to January 1982, the interest rate was 17.48% which translates to $1,465 per month for a $100,000 loan.

These super low interest rates and the huge drop in home prices makes right now a great time to buy. In many cases, rental costs are higher than the cost to own.

As people have become more aware of the environmental damage caused by vehicles and the health benefits of walking, they have sought out homes that are near amenities. A great resource to help you understand areas that you may not be familiar with is called walkscore.com. This provides you with an idea of how the location you are considering compares to other areas. It also provides you with a brief look at what is nearby.

Having the grocery store and bank nearby is a benefit to people who may be getting older and for people who like to ride a bike or walk. Using a website like this will help you determine whether a location is right for you or for the tenant you are trying to attract.