Archive for December, 2008
Have We Hit Bottom Yet???
To Schedule a showing for this property, please Click HerePosted: December 7th, 2008
Bart Smith’s
Real Estate Update
Have we hit the Bottom?….Some economists are predicting in 2009, others in 2010. One thing is pretty sure…we won’t see the sharp drops in the next 18 months that we have in the last 2 years. Here in Orange County, we have seen prices fall over 50% in some areas. Most areas have seen a 25-30% drop. While there is still some excess inventory in some areas, the County only has about 5.5 months of unsold inventory…over-all a sign of return to health. Yes, I believe we have hit the bottom. Encouragement from the Government is causing lenders to go out of their way to work with borrowers to avoid foreclosures and we will see lower rates, stimulating buying activity.
Foreclosures continue….We’re currently seeing about 1200 bank owned properties per month coming onto the market, while over 1000 are selling, which is about 1.2 months supply. This is a necessary step towards housing recovery.
Home Financing Update….Gone are the “Stated Income” loans, the “teaser rates” and the sub-prime mortgages. All were instrumental in causing “false demand”, which pushed home prices to the breaking point. Back are the sound underwriting guidelines we had 30 years ago. Today’s “sub-prime” buyers may still qualify through FHA. Higher loan limits in OC make this a possible alternative. Call for information.
Investment properties make sense again….For the past several years investors had to put over 50% down to make a property break even. With the dramatic drop in prices it makes sense again to buy homes as an investment. We are in a position to help you sort through the options in this unique time in the housing cycle. Call if interested.
Company Name Change….After more than 20 years with RE/MAX, at Franchise renewal time, RE/MAX of California decided to make some fundamental changes in the Franchise agreement. This caused our company, with 10 offices and 350 agents, to leave the RE/MAX name behind. Everything else, phone numbers, office locations, licenses, etc., have remained the same. In fact we have even more to offer our clients with our Re-Branding and affiliation with Leading Real Estate Companies of the World, the largest referral network in the world.
I want to thank you for all your support in the past and I look forward to serving you in the future, as you, your family and friends become involved in real estate transaction.
Blessings to you and your family as we celebrate the birth of our Savior, Jesus Christ.
Bart Smith
PS. For our semi-monthly Orange County Housing Report,. Just send your e-mail address to Bart@smithteam.com