House Trends in El Dorado Hills

Home sales in El Dorado Hills continue to struggle just like every other place in the country, let alone in California. Most banks in California that finance house purchases in El Dorado Hills have been reporting their intentions loosening the lending rules in their effort of enhancing availability and affordability of credit to locals. If all goes well, this will likely help tame the ever rising interest rates in the county even though it is a sit and weight game for those in the real estate market.

Increasing home prices

It cannot be denied that home prices in El Dorado Hills are now through the roof and just as they have always done in the past, prices have continued to rise and rise this year. However, the only good thing with the rise is that the pace has been a little slower compared to last year. California is generally experiencing a housing price bubble and El Dorado Hills is certainly no exception to this either. This has, however, been accompanied with relatively increasing income albeit the income increase has been much slower to match up with the pace at which the price of houses is increasing at.

And one fact that is undeniable is that when it comes to buying and selling of homes in El Dorado Hills, cash is king. Recent statistics have seen that cash sales of homes are now at a new high with most residential property sales in El Dorado Hills being paid for in cash. The truth of the matter is that cash sales have experienced increased popularity throughout the country as everyone in the sector seems to be encouraging this mode of payment. Smaller investors, foreign buyers and institutional investors are deemed to be the main sources of these cash and this has certainly been good news to the real estate market here.

The housing market and young people

Another trend in the El Dorado Hills housing market is that young people seems left out in housing recovery efforts as most factors seem to be against them. These young people essentially make the majority of the first time buyers here and have over the years amassed a lot of debts and when this is combined with their struggle to find well paying jobs, it is becoming harder for them to finance the purchase of their first home. Recent times have seen a reduction in the number of first time buyers and this has resulted in young people opting to live with relatives/ parents or renting out rooms.

The mortgage market

Finally, the mortgage market in El Dorado Hills is sluggish just as it is in most of the other parts of the country. Availability of mortgage has gone down this year and there has even been low level of mortgage applications this year. This year has seen a reduction in the activity of purchase and refinance. Something else worthy noting is the comeback of jumbo loans and construction of new homes for sale in El Dorado Hills seems to be slowing down of late.

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