Monterey CA housing inventories are down. The National Association of Realtors (NAR) reports that inventories fell by 1.3 percent in March, leaving inventories 21.8 percent below their year-earlier levels.

Home sales have now posted year-over-year gains in each of the last nine months. But in almost all of those months, the number of homes for sale has declined.

3 Reasons to Explain Why Monterey CA Housing Inventories Have Fallen:

1. With home prices down by one-third from their peak, who wants to sell a house right now if they don't have to? That's especially true for the roughly 15% of homeowners who are underwater on their mortgage.
    
2. Banks have decelerated the foreclosure process after they were caught routinely passing off bogus documents to demonstrate ownership. That has slowed the pace at which they're putting Monterey CA homes back up for sale.
    
3. While investors initially were buying up Monterey CA foreclosures that could be fixed and flipped, or resold, for a quick profit, over the past two years, more investors have been buying inexpensive homes that can be rented out. Those homes are, for the most part, out of the for-sale pool for the near-term.

Monterey CA Housing Inventories Down Only Temporarily?

Of these three reasons for Monterey CA housing inventories to be down, the first two would imply that the downturn in listings is artificial, and possibly temporary. But the role of investors in today's market could make the drop more lasting.

The NAR report also showed that the West was the only part of the country to see a year-over-year decline in sales during the month of March. The drop was almost solely concentrated around properties priced below $100,000, where sales were down 19 percent.

Are there any other reasons you can think of that would be causing Monterey CA housing inventories to be unusually low right now? We'd love to hear your comments.

Monterey CA home buyers are looking for certain things in a home these days. If you're selling a Monterey CA home, don't make these mistakes when sprucing up to get your home ready to put on the market…

There are a lot more mistakes to avoid when getting your Monterey CA home ready to sell and we can help you avoid them. Contact us for more information and a free, no-obligation consultation about the current Monterey CA real estate market.

Mortgages are netting households the biggest cost savings relative to rent in at least 20 years in Monterey CA. And with home prices as low as they may ever be again, now may be the ideal time for would-be home buyers to consider throwing in the towel on rent, and take advantage of all the home ownership perks afforded by owning vs. renting.

Mortgages Higher Than Rent Since 1991

According to data compiled by Deutsche Bank from the National Association of Realtors and the REIS Inc. information service, those with home loans are benefiting from mortgages costing 0.8 percentage points less in last year's fourth quarter after being about the same as rents during the first three quarters. Mortgages have been 3.1 points higher on average since 1991.

Analysts John Perry and Nishu Sood noted in their report that falling home prices and still-rising rents accounted for the fourth-quarter gap. The median price of a single-family house fell 5.8 percent in the quarter, while rent payments rose 0.5 percent on average.

Rents averaged 14.9 percent more than mortgages during the last three months of 2011. The gap widened from the third quarter by 8.1 points, and rentals were more costly for the fifth consecutive quarter.

The differential points toward a rebound in homebuilding and a slowing of rent increases.

If you've been renting, with Monterey CA mortgages being at or below record low rates, now may be the time for you to make the move and buy a home. We'd be happy to discuss the market with you, and talk to you about whether now would be the best time for you or not. Just contact us for a no-obligation consultation.

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Flood insurance in Monterey CA is something some people might say is a waste of money, but floods are obviously quite common in low lying areas that are surrounded by water. In these areas, especially around Monterey CA, not having flood insurance is like playing financial Russian Roulette in the event of a serious storm.

Flood Insurance If You're Not Near Water?

What about homes that are not situated right in front of a water source? Do they still need to be insured against the potential for flooding?

Of course they do. As it turns out, there are many claims for flooding that come from some of the most unlikely areas. It's not just a function of simple flooding that puts your Monterey CA home at risk.

First, think about what would happen to your home even if just two or three inches of water covered your floors. How much of your personal belongings touch the floor and how many electrical cords and extension cords do you have throughout your home just an inch or two off the floor, or worse, lying directly on the floor? How many of these things will put your entire home at risk if there was even just a small flood in your home?

Ground water can start to meet the rain water when the ground is saturated. It doesn't take much to start noticing a significant rise in innocuous bodies of waters such as streams and ponds. It doesn't take much for the overly saturated ground to start siphoning off rain water, which in turn creates flooding.

Floods can happen thanks to saturation of the ground just as easily as it can happen when ground water and rain water meet to cause excessive rain runoff which can lead to flooding. No matter where you live, you may very well find that you are suddenly noticing there is an increase in water saturation after heavy rain. Just ask anyone who was in a non-flood plain area in the path of Hurricane Floyd in 1999, or anyone in non-flood prone areas where Hurricane Katrina wrecked havoc.

Every region runs the risk of flood waters these days, even in the Monterey CA area. Flood insurance is not expensive and it is a simple way to protect your home in the event of a serious disaster. It takes very little water to do a tremendous amount of damage that can cost you thousands upon thousands of dollars right out of your pocket if you don't have flood insurance. Flood waters can creep up on you quickly and be right at your front door before you know it. One simple flood insurance policy can mean the difference between being financially wiped out and being able to rebuild.

If you have questions about flood insurance, check out the information at the FEMA website about The National Flood Insurance Program.

Monterey CA foreclosures continue to be the main reason why it's a tough time to sell. Fannie Mae is selling foreclosed Monterey CA homes, but not to the general public.

If you have questions about Monterey CA foreclosures, or Monterey CA homes for sale, please don't hesitate to contact us or post them using our comment form.