Archive for May, 2012
Happy Memorial Day!! We hope you have a nice and relaxing long weekend planned Here’s an interesting email we received about homebuyer recovery from the folks at FirstTuesday.us and Barry Zanck, one of our preferred lenders. What do you think?
California Home Buyer Recovery
2005-2009 California economic development stagnates.
2007-2009 The Great Recession
2009-2010 The Federal Reserve takes direct control of long-term interest rates – all new mortgages are Fed funded by bonds.
2009-2016 The Lesser Depression, characterized by persistent slow job growth and low demand from home buyers, while dominated by speculators.
2010-2015 Home sales remains on a “bumpy plateau” recovery approximating their 2010 numbers. The state’s homeownership rate drops below 55% (state’s historic point of stability) to near 50%. Collectively, short sales, foreclosures sales and REO resales remain high.
2012-2013 The most likely bottom for home sales volume to users, followed by an extremely gradual sales volume recovery for lack of user demand. Apartment construction begins to rise noticeably in response to tenant demand.
2014-2015 Prior low pricing and low interest rates spark a bounce in home sales volume. This bounce is short-lived, as the Federal Reserve raises rates to control the pace of recovery and prevent momentum buying. Property prices keep pace with the rate of consumer inflation. Speculators holding SFRs acquired two or three years earlier begin to dump them
2014-2016 Home sales stabilize. Shortsales, foreclosures, bankruptcies and REOs remain high. 300,000-400,000 new jobs are created annually for a return to the December 2009 peak level. Generation Y begins to come of age and buy homes.
2016-2017 Full recovery mode for employment, home sales, then pricing. SFR construction rises, though no where near Boom-time heights.
2017-2018 Interest rates rise again.
2018-2020 Excess inventory of vacant homes finally returns to pre-recession levels. Generation Y begins to pick up homebuying activity en masse. Homeownership in California is at 50%.
2020-2025 Negative equity homeowners who refused to strategically default finally work their way out of debt and return to a stable financial status, the poorer for it.
2025+ Home prices return to peak levels of 2006. The lessons of the Great Recession forgotten, and home sales hedonism returns. The mistakes of the past are repeated and the cycle continues.
We agree that we are probably at the bottom right now, as we’re already seeing an uptick in California homebuyer interest, and a decrease in inventory. We disagree that interest rates will stay low until 2017…..although wouldn’t that be nice???! We also agree (unfortunately) that the lessons of the past will be forgotton by 2025, and the market will again cycle. It always does!
What do you think? Please comment below or tweet us @angieweeks or @weeksteam. Should you be interested in buying ‘at the supposed bottom’, please call us at 877-230-3211, and we’re happy to show you homes over this Memorial weekend!Read Full Post | Make a Comment ( None so far )
Does homeownership matter?
According to 13,000 Realtors, their clients, and nationwide political figures it sure does! On Thursday May 17th there was a sea of blue at the Washington Monument to support the most basic American Dream, owning your own home.
“Our home is where we grow our families, build our memories, secure our equity…the investment in real estate is worth a lifetime.” – Georgia Senator Johnny Isakson
Protecting Orange County Real Estate
Currently politicians are in discussions and debate about our Mortgage Interest Deduction (MID), and the taxation (or lack thereof) on gains from sales of primary and secondary residences. These tax benefits are crucial to the SHORT TERM value of owning a home over renting, and I was there rallying to protect this for our past, present, and future clients.
“Families who own homes have less crime, less divorce, better finances, and more. Every day of your life when you put people in a home YOU STRENGTHEN AMERICA. 2 jobs are created for every home sold” – Moe Vessi NAR President
Of course, the long term value of owning a home will always remain – you get a roof over you head for free after your mortgage has been paid off – talk about a sense of security and financial freedom The other long term benefit is equity, and it was restated at the rally:
A HOMEOWNER’s NET WORTH is 46X THAT OF A RENTERS
Now is an excellent window of opportunity for renters to buy a home, as interest rates are the lowest they have been in years, and the prices of homes in Orange County are also lower than they were 5 years ago. Many first time buyers are getting into the market right now, and we are seeing properties properly priced in the under 400K range sell within days, with multiple offers. Eventually, this will drive prices back up, but it has not yet.
The Weeks Team is here to be your homeownership advocate. If you have any questions or concerns about your neighborhood, home prices, political real estate bills, upgrades, etc, don’t hesitate to contact us!
We also looooove to educate renters on how to buy their first home – so when you tell your friends how important homeownership is to YOU, don’t forget to give them our card or 877-230-3211 number, so we can help them enjoy the benefits as well!Read Full Post | Make a Comment ( None so far )
Reasons People in Orange County Short Sale
- Job loss
- Income reductions
- Job relocation
- Medical / health expenses
If you know someone struggling to keep their mortgage payments current, who is experiencing any of the above, please put them in touch with The Weeks Team 877-230-3211 for a no obligation consultation.
If you’re already in the short sale process, here are some tips to help you:
- REMEMBER: SHORT SALES ARE TOO DIFFICULT WITHOUT EXPERT HELP!
- Talk to your tax advisor, Realtor, and ensure you have a short sale negotiator
- Check with your Realtor to see if you qualify for HAFA
- Honestly & completely fill out / provide all paperwork
- Keep your home in the best shape possible and make it easy to show
Short sale incentives
There are MANY incentives available right now to homeowners who are interested in short selling. Here are just a few:
- Tax forgiveness for Short Sales closed through December 2012
- HAFA $3000 relocation assistance
- Easier & quicker to purchase after short sale than foreclosure
Obviously, the best thing is to keep your home, and wait for appreciation to swing back up so you have equity. Unfortunately, many do not have the time to wait for equity Doing a short sale is the next best option if selling is a must. Don’t forget to call The Weeks Team 877-230-3211 or email email@example.com for a pre-foreclosure consultation – every scenario is different and we will help you work out the best solution for your situation!Read Full Post | Make a Comment ( None so far )