California Real Estate Market - Although 35% of southland realtors believe the real estate market will drop, the demand for housing is still the determining factor with pricing in California.

Many California residents have found the real estate market to be too expensive at this time and they are looking to other states such as Arizona.

California has been a fantastic place to invest. Over the last few years property values have soared.

The differentiating factors that separate California from the rest of the United States real estate market are mostly determined by quality of living within state however, the California real estate market is also subject to fluctuations caused by speculation and rumor. It is important to find a realtor who is unbiased and is focused on serving your needs first.

Rising real estate prices in California have made home loans with minimum payment options incredibly popular amongst California residents, because they allow borrowers to get into a home or refinance and lower their minimum payments for a few years. In several counties, over half of the loans recorded in 2006 to date feature minimum payment options.

The real estate market values in California started to fall in early 2007. Many home owners who had purchased their homes with ARM mortgages found that when they needed to refinance they could not do so. The reason was that since property values fell so drastically their house was now worth much less then they owed. This has led to many foreclosures in the state of California and experts fear it may get worse as time goes on.

Inflating housing prices in California is one of the leading causes for pushing up the conforming loan limits up to $417,000 for 2006. When a home mortgage is over $417,000 it is considered non-conforming to GSE's (Government Sponsored Entity)such as FNMA or FHLMC. When these agencies wont invest or buy loan amounts over this figure the home owner must seek "jumbo" or "super-jumbo" financing from home lenders. The median house price for Los Angeles County was $495,000 for 2005 which was a change from the previous year by 20.10%.

Homes are still appreciating at a fantastic rate! The demand is still there and its driving prices upwards.

With prices being so competitive is very important that you discuss with a mortgage professional, to figure out a loan that will fit your needs.

With the new Fannie Mae loan amounts increasing to 417,000 this allows many California homeowners to receive great conforming rates. Great time for purchase and refinance without having to get into a Jumbo rate.