This past Friday (Dec. 14th) saw a huge victory for consumers with the U.S. Senate overwhelmingly passing the FHA Modernization Act (S. 2338) by a vote of 93 to 1, which basically reforms the FHA.
This is also a HUGE victory for REALTORS who have lobbied Congress aggressively all year to pass FHA reform. Many desperate homeowners now have a little relief heading their way through alternative refinancing options. And in this market, options are a GOOD THING!
However, the hurdle hasn't been completely jumped yet...there are still a number of details to be worked out between the Senate FHA reform bill and the House passed version. A conference committee is set to resolve those differences. But both sides agree it will be done. The huge bi-partisan support is at least one thing Congress can agree on...the President has indicated he will sign it.
With the above average value of homes in San Diego County, an increase in the FHA loan amount is welcome relief.
There is still yet-to-be-introduced legislation in the Senate to reform Government Sponsored Entities (GSEs) Fannie Mae, and Freddie Mac...one step at a time I guess?
The wheels of reform may be turning slow, but at least they ARE turning!
Tuesday, December 18, 2007
Thursday, December 6, 2007
November Market Report
No question we are in a down real estate market. Foreclosures rates are high while interest rates are pretty good. No thanks to the media constantly reporting how bad it is "out there".
The stock market has been performing well. Unemployment is relatively low this decade and the bond market is strong.
The real issue is who does this market hurt and who does it benefit? It all sort of depends on which side of the fence you sit. Sellers may feel like they should have unloaded 2 years ago while buyers are probably glad they are "buyers" now and not the other way around!
I am slightly amused by folks who ask when will we know when we've hit "the bottom" of the market? My answer is simple - 'when it's no longer the bottom'!
So while many sellers are interested in moving up or down - by buying again - are afraid to sell, they can equally benefit by buying now rather than waiting for the market to improve. They can sell for more, but then turn around and pay more...it's all relative
Buyers who may not have been able to afford the market here two years ago, should be better off today entering the market.
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MARKET REPORT- State of California - November 2007 - according to the CA Association of REALTORS:
1. Home sales in the state are DOWN -14.9% from November 2007 to 2006. Home sales are also DOWN (so far this year) -38.9% from 2006.
2. The median home price has dropped -9.9% from November 2007 to 2006, but only -4.7% so far this year on average.
3. The median Days On Market (DOM) has only increased 3 days longer (57) and mortgage interest rates fallen -0.2%...Wow, some GOOD NEWS!
As always, feel free to contact me with any questions or comments.
Warm regards,
Chuck Denton
(760) 908-8969
chuck@eracoastal.com
The stock market has been performing well. Unemployment is relatively low this decade and the bond market is strong.
The real issue is who does this market hurt and who does it benefit? It all sort of depends on which side of the fence you sit. Sellers may feel like they should have unloaded 2 years ago while buyers are probably glad they are "buyers" now and not the other way around!
I am slightly amused by folks who ask when will we know when we've hit "the bottom" of the market? My answer is simple - 'when it's no longer the bottom'!
So while many sellers are interested in moving up or down - by buying again - are afraid to sell, they can equally benefit by buying now rather than waiting for the market to improve. They can sell for more, but then turn around and pay more...it's all relative
Buyers who may not have been able to afford the market here two years ago, should be better off today entering the market.
------------------------------------------------------------------------------------
MARKET REPORT- State of California - November 2007 - according to the CA Association of REALTORS:
1. Home sales in the state are DOWN -14.9% from November 2007 to 2006. Home sales are also DOWN (so far this year) -38.9% from 2006.
2. The median home price has dropped -9.9% from November 2007 to 2006, but only -4.7% so far this year on average.
3. The median Days On Market (DOM) has only increased 3 days longer (57) and mortgage interest rates fallen -0.2%...Wow, some GOOD NEWS!
As always, feel free to contact me with any questions or comments.
Warm regards,
Chuck Denton
(760) 908-8969
chuck@eracoastal.com
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