There are many predictions about the state of our economy. There is definitely a school of thought for the double dip recession. Some of the signs that are used to predict the future are not faring as well as everyone hoped including housing construction. We have seen some improvement over the last few months. Home sales were up until July when they took a definite plumet. The last I heard a few days ago was 27%. Ouch! Still prices in California overall continue to rise. It was just reported that San Bernardino was up 10% which is helpful to hear since that area was hit very hard in price decreases.

Some outspoken analysts fear housing may drive us back into recession. Over all though, it would seem that households and businesses are all in a period of thrift and cautiousness right now. Some are calling it a “pause” which seems appropriate to me. Only time will tell and the next 6 to 12 months should be critical. 

I am still hoping for the best! We are all very tired of recession and it would be nice if we could “Eat, Drink and be Merry! This is the theme at the Pageant of the Masters this year and it seems very appropriate. Good show if you can catch it. It will be over soon!

Distressed property sales are becoming a significant part of the real estate market landscape. Wall Street took our mortgages to a new level with Credit Derivatives’ and MERS. These are now poised to bring potential problems with the chain of title.  Here is a thought-provoking article written by professor of real estate, George Mantor, which uncovers some of the potential title pitfalls with foreclosures and short sales and the impact it could have on the home buyers and Realtors.

If recent court decisions are any indication, we are headed for an explosion of litigation in this area.

And now, Massachusetts Courts have revealed the possibility that unlawful foreclosures, dating back to 1989, might be invalidated and that buyers of foreclosed properties and short sales may have clouded titles.

The implications are enormous for title companies, bankruptcy attorneys, real estate agents, those facing foreclosure, and those who have lost their homes

To read the full article please follow this link

Recession is a terrible thing to waste. In any downturn someone is having an upturn. For many it is a time of opportunity! Buy low-Sell high.  That is the typical advice for the stock market. However we know that is not what most people do. It is a natural instinct to sell when prices are falling. And it is usually what everyone else is doing! The same idea applies to real estate. Most people will actually wait until prices are well on their way “up” because they do not want to miss the “bottom”. Problem is the bottom goes by without any notice and suddently the news will be “prices are rising”. 

What is a good deal anyway? Is it just about getting a lower price than the asking price? Do you consider how much lower the price is today than it was at the peak of the market just 3 years ago and caclulate the savings? Do you consider how much the price will likely increase over the next several years and calculate the rewards?  If you are not considering these points when looking for a “good deal” you are probably not getting any deal. Many buyers are writing multiple low price offers and consisently losing out. This results in No Deal! No deal is not a good deal! 

Is the glass half empty or half full? Even if your home is worth less (and it surely is) this is a great time to “move up”.  Home prices have fallen across the board making that dream home you have had your eye on much closer to reality! And if you move up now instead of waiting you stand to improve the amount of your increased profit considerably in the next upturn since homes in the higher price ranges appreciate at a higher dollar per percentage. Couple that with the chance of interest rates increasing (inflation always follows recession) than the price of that new home could be considerably more if you wait

Inventory has decreased dramatically over the last few months. With the spring season just beginning the scene is set for a possible “sellers market” I know it is hard to believe but it could happen.  If you see your self in any of the above scenarios and would like some assistance with your real estate plans please give me call or visit my web site to start your search for your next home. I look forward to hearing from you!

The market is showing signs of improving “right now” Is it time to buy?

Home prices in the Southland, which sustained one of the nation’s biggest declines, are rising, propelled by buyers eager to snatch up deals on deeply discounted foreclosure properties.  Outlying areas such as the Inland Empire  and Central Valley are continuing to struggle and will probably do so for some time. However, pockets of recovery are beginning to emerge and Orange County is certainly one of these communities that is posting a gain in sales numbers and pockets of price increases. Market share of foreclosures and short sales is very low as inventory decreases it is shortening the  market time for current homes available for sale.

Some may thnk that California would continue to be a poorly performing state based on the depth of the value loss, but Californians have learned to think like speculators over the years. Speculators know you buy when the news is still bad and market timing means you don’t wait until the market starts going up.” 

If you are thinking of catching the bottom of the market you might want to get started now! There is certainly talk of a shadowy foreclosure inventory looming on the horizon but if it does materialize it will sell quickly. There is much demand for this type of property