Market trends vs. how I see the market

Everybody hears, reads, sees, feels the market. Information overload has many wondering if its the end of housing, the end of oil, and possibly the end of the world. Now I don't have the answer to the end of the oil or the world, or necessarily the end of the housing slump. All I have is my view of it. These past two weeks I have had more calls, emails, visits, and in person chats about the market and buying within the summer than I have to admit I have had in the last few months. I went into the office and the board is getting filled with excited buyers who can finally purchase the home they've been looking and waiting for.

Listings are selling! I asked to do an open house for an agent in the office and she apologized and said she sold them all (some with multiple offers). Now we are still selling at 50% of what we were at the high point, but we're selling. I don't want this to sound prideful, I want this to sound amazing to those who have been sitting and waiting for signals towards the 'bottom' of the market. Again, signals, not the absolute bottom, but then again, interest rates aren't getting any lower, so they are beginning to intersect.

Given my age and working with those I associate, many are first time buyers. It is amazing to see the look on their faces as they realize they can have what was once unattainable. It brings me so much joy to see that and to feel like I was able to facilitate part of it. That is the BEST part of my job, making it less of a job and more of an experience to be remembered!

Gas saving tip

With gas prices skyrocketing, are you looking for ways to save fuel? Here's one way :-)

Southern California Real Estate

Real estate in Southern California will always be attractive and enticing. At a seminar, the main speaker gave an interesting point. He joked about how the city of Pasadena must have made a deal with the deity that every January first, while the rest of the country is cold with various types of precipitation, it would be in the low 60s- 70s with a light breeze from the Northwest while the Rose Parade rolls through town.

It is true we had quite the spike in real estate that needed correcting, but people will always want to live in California. Songs, movies, books, comics, magazines, and even blogs are written about California. Where else can you ski on one day and surf the next? Let me know, because I would like to go there.

New Homes

With large inventories and not as much demand, new home builders are offering much lower than asking prices, large incentives, and builder financing under 6 and sometimes even 5% interest rates. The problem is that they are sometimes hard to find.

Ask a Realtor if he or she sells new homes. Not all will, but those that do can find you some awesome deals if that is what you’re interested in. I have found some awesome new home deals within the last year that beat resale prices. Its like buying a new car since you get to pick your options, interior, flooring, how many bedrooms/bathrooms, and other amenities specific to your wants and needs. Ask me if you need help determining whether or not to go for a new or resale home. I’d be happy to assist.

FHA loan limit increases

This is something everyone needs to know, especially in our county. FHA loan limits are up!!! $729,750 in OC and LA counties, to $500K in Riverside and San Bernardino and $697,500 in San Diego. This is tremendous news as FHA is a very solid program that will allow us to potentially refi homes but more importantly it will allow someone to purchase a home up, to $750,000 in OC; $510,000 in Riverside and San Bernardino Counties; $710,000 in San Diego County, and only put down 3%. All of this can be a gift too!!! Keep in mind though that this program is currently available only till the end of the year.

This is some serious news for homeowners waiting to refinance and also for those wanting to purchase but couldn't or didn't want a jumbo loan. This will bring a boost to the market and housing affordability. Ask a Realtor if you have any questions, or contact your bank or loan officer. We wish you the best in this market and please share this with those you know.

Before work thoughts

Survey: What would you tune into, given all three aired on three different channels at exactly 9:05pm on the news?

A.) A police officer walked an old lady across the street.

B.) Little Timmy hit a home run during practice

C.) Many first time buyers are finally getting places to call home

To be honest, some wouldn’t even tune in unless there was something gruesome about them or if nothing else was on. Well the media knows that, and so they cater to peoples desires to hear bad news. There is a lot of good news out there, it’s just a little harder to find. Please get informed! Just like the old milk commercial, it ‘does a body [and mind] good!”

FHA and GSE loan limits

This is a very recent bit of info on the stimulus package loan limits that we received from the National Association of Realtors.

http://www.realtor.org/GAPublic.nsf/files/new_loan_limits.pdf/$FILE/new_loan_limits.pdf

I could send it to you since it requires my login. If you want, I can email it since its a PDF. It gives the new loan limit for every county in every state as well as Puerto Rico. The ** means that they haven't determined how high it will go, but that the limit will be at least between $575,000 -$729,000.

This is very exciting, especially in high cost counties such as all coastal California counties (a bit of alliteration for you) and others scattered throughout. Mid-March should be the tipping point that will band-aid the housing market difficulties. It is far from a cure, but it will contribute to many potential buyers who either can't qualify or who can't come up with a serious down payment.