The facts are in and the reviews are mixed. What’s certain is that September residential sales in the San Fernando Valley will go on record as the worst since 1984, when these figures were first tracked. Closed residential sales for single family homes were down 55 percent and the number of condo sales was down by 48 percent according to a recent sales report compiled by the Southland Regional Association of Realtors. Slightly more than a third of the buyers under contract to purchase a home were shut out from their dream of becoming new home owners. Many of these transactions fell through at the last moment and most would be homebuyers had already given notice to their landlords. The temporary turbulent mortgage market put buyers who wanted to purchase their first home in the perilous position of renegotiating new lease terms with their old landlord. The period between August and September is typically an active sales month as households settle down prior to the new school year. Elimination of many sub-prime loan programs, coupled with tightened credit standards, made it more difficult to obtain zero or low down-payment loan programs (the most popular programs used by buyers in the lower price ranges). More than 95 percent of homebuyers aged 25 to 65 years old use mortgage financing to purchase their home. Most of these buyers are still active in the workforce. Almost half of first time buyers and nearly 20 percent of repeat buyers in the lower priced properties finance 100 percent of their purchase price. Seventeen percent of those who financed 100 percent of their home purchased with sub-prime loans. The higher priced properties were somewhat insulated from the fallout in the mortgage market. There were 158 “sold properties” in the price range between $800,000 and $2,000,000, which is only 7 percent less than a year ago. Market Opportunities The recent drop in the federal fund rate has kept mortgage rates at historical lows. Low mortgage rates equal lower monthly payments. It is uncertain how long interest rates will remain stable. Inflation may be on the horizon, with energy costs and the price of gasoline rising to record levels. The Fed’s policy has been to raise interest rates to curtail inflation. It is impossible to perfectly time where the market will go. Why take the risk? Investors and savvy buyers know that the best deals are made between Thanksgiving and the second week in January. This is the typically the slowest period in the real estate market. For worry warts who are concerned about overpaying in a changing market, make an offer based on the value you think the home of your choice will ultimately settle down to. With the slowing in sales, buyers have one of the best opportunities in five years to take advantage of anxious sellers who are in a “must sell” situation. Today there are plenty of homes to choose from with inventory at a 14-month supply. Motivated sellers will make concessions to motivated buyers with pre-approved financing in place. If buying a home is in your future plans, get off the fence and make a deal. Think Long-term Real Estate Values The purchase of a home is among the most significant decisions an individual can make. The process is complex and requires serious consideration. Do your homework; join the 84 percent of successful buyers who began by searching online. Buyers that have their financing pre-arranged have added negotiating strength. Take time to search neighborhoods during the day and again at night. Research the schools and crime rating as well as the proximity to community amenities that are important to you. Remember real estate is a long term investment. Mel Wilson is a realtor who has represented buyers and sellers for more than 29 years.