A Trulia reader asked me about Freddie Mac and Fannie Mae and if it should affect his desire to invest in Moreno Valley real estate. Here’s what I wrote him:

The “Fannie Mae and Freddie Mac mess” shouldn’t negatively affect your decision to buy a house. Buy a house you like at a price you can afford in an area you want to live in and all the other messes won’t matter.

So let’s break this down …

House you like.
Your profile says you’re a home buyer in the 92557 zip code (Moreno Valley, North of the 60 Fwy.). As of this morning there are 431 Active listings in the 92557 zip code. But if you look further, only 135 of those are bank owned foreclosures. The rest are short sales.

Over the last three months, the 92557 zip code has averaged 30 sales a month. That means there’s only a 4.5 month supply of sellable inventory. And I’ve written elsewhere on Trulia how a Seller’s market is defined by less than six months inventory.

The good part for you is that even though inventory is in short supply, there’s still a steady stream of new foreclosures (today’s short sales and such). So the key is to have your loan ready and be prepared to write offers … lots of them.

Price you can afford.
The other interesting thing to note is that the aveerage list price in the 92557 zip code is $211,337 and the average sales price is $211,131. That means the banks are starting to price the houses fairly. So before you write your offer, make sure your agent does a thorough CMA so you can understand teh market dynamics and write an offer that has the best chance of closing at a price that doesn’t leave YOUR money on the table.

The other REAL risk for buyers today in Moreno Valley, and elsewhere, is that mortgages will be harder to get in the coming months.

So go invest in that house today!