Here we are again. It seems like every governmental agency has it’s favorites. Remember the huge governmental bail outs, well here’s another example of government unfairness. RESPA seems to also have favorites too. Is this really going to help consumers?
I just wanted to wish you a very merry holiday season and I hope to bring you better news about the real estate market place. in 2012. I believe the market will be similar to this year but hopefully it will get better.
With all of the crazy things that are happening today and during the year, I think it’s time to spend some quality time with friends and family. They have been with you through the good times and bad. So let’s be thankful for having people around you that really cares about you.
Just wanted to wish everybody a safe and happy Thanksgiving.
I would like to say thank you to all of the soldiers who have served and who are currently sacrfacing their lives to protect our country. Without their courage and commitment, this country could be in turmoil. Thanks again.
In the past few weeks the real estate market showed multiple signs of a rebound of some sort. In 20 metropolitan areas prices rose 0.2% in August but were still down 3.8% year over year. This may all change soon. In September, pending sales were down 4.6%. Could this be another beginning of a triple dip? With Freddie Mac requesting for another $6 billion of your tax money and holding about 60,000 REOs from the market, which will take approx. 15 years to sell off, I don’t think our country’s rebound in a lot of areas will happen anytime soon and hope that the triple dip is not too severe.
Some help is on the way. The Federal Housing Financing Agency is trying to help change the market. They are making a few changes to the Home Affordable Refinancing Program to attract more borrowers and stimulate the mortgage industry and helping more homeowners. The National Association of REALTORS are also concerned with the state of our real estate market and has a 5 point plan that could get us out of this triple dip situation and stabilize the market. With any change, it will take a while for the changes to make a difference. Let’s hope that it won’t be too long.
There has been more then 610,000 foreclosures last month and represents a 1% increase then the previous quarter. On average it took 336 days to complete the foreclosure process nation wide. New York took 986 days to complete the process while Texas only took 86 days. Wow, Texas seems to be doing something different.
President Obama is expected to help struggling homeowners with their mortgage payments. The Wall Street Journal reports, ”The administration’s plan is expected to eliminate “appraisals and extensive underwriting requirements for most borrowers” who are up-to-date on their mortgage and want to refinance at a lower rate”. This should help those who have been keeping up with their payments and were looking for assistance in avoiding foreclosure.
While most the country is having foreclosure problems, there are areas that are still doing well. These areas are the most expensive areas in the United States. The economy today doesn’t seem to hurt these types of properties. In fact, it seems to have increased the sales activity in this price range.
California home sales are looking at a 1% increase in 2012 and the sales price may also increase 1.7%. Employment , low interest rates and an increase of affordable homes are going to fuel the sales activity and help get the recovery going. “It will take as long as five years for the state’s inventory of foreclosed properties to be absorbed” according to Leslie Appleton-Young, chief economist for the California Association of Realtors.
As we are getting into the last quarter of the year, San Francisco and the Bay Area have gone through a lot of changes. They could be good or bad depending on how you look at it. As I have mentioned on another post, what will the city be like in the next 5 years? I believe it should be at a point of recovery. We’ll see.
In many areas in the nation, there are areas that are cheaper to buy a home then to rent. You now can find a home for $100,000 in New York and through out the country including Hawaii.
It may seem like some areas have not been affected by the economy but that is not true. The properties that sell really quickly are usually the cream of the neighborhood.
The Bay Area has been hit as well but not as bad as other areas. It will be a while before we get out of this mess.
The economy has driven our home values down and there is no end in site. Many areas in the nation has experienced major price reductions. Not all areas have been hit but California has 6 areas that had the largest drop in value out of the top 10 areas nationwide. The prices have decreased more then 60% from 5 years ago. This situation will not get any better anytime soon due to the 1,000,000+ foreclosures that the banks are holding this year and another 1,000.000+ foreclosures in next 2 years. It will take a few years to sell off all of the phantom inventory before any appreciation can be realized in these areas.
