Posted Thursday, August 6, 2009

A Quick Summary of the Past Quarter's Amazing Turn-around

Hello Folks!

At this time of “Change” and “Stimulus” there’s one thing for certain, times sure are different from ever before. The immediate good news is automobiles are flying off the showroom floors as fast as entry level housing is selling. That’s finally good news for our friends on Auto Row. The automobile industry has “Cash for Clunkers,” and we in real estate have new FHA (government backed loans) borrowing limits allowing buyers to purchase with 3.5% down, up to a staggering $729,000. Is this déjà vous, not for me to say, just to narrate what is. The California new home buyer credit was such a hit that virtually all the funding allocated for the tax incentive program has been used up or designated. However, for any first time buyers (or folks who haven’t owned a home in the past 3 years) can still claim the $8,000 Federal cash credit until December 1st. That really got people off the fence over the past quarter. And the latter really is the time frame this market turned for the better. Tax and cash credits plus increased loan limits all pulled us out of the nose dive in housing. Unfortunately, clients and friends in areas like Bakersfield and the Antelope Valley still narrate entire neighborhoods vacated to foreclosure, but it’s not happening in the SCV, SFV, LA, or the coast. Fining salable properties in these areas is a challenging, almost like it was 2003/4 again, but those of us who’ve been around know how to reveal the “silent inventory” of unlisted homes just below the surface; that’s why folks shouldn’t just rely on something coming up on-line before they think they can find a home. Many of our sales today are put together from “networking” unlisted properties….The moral of that story is to call us if you’re looking for an investment, but don’t see it on the Net. We’ll find it. Many of these under the radar properties are foreclosures coming to the market. They are homes that those of us who represent banks have under contract, but are just waiting for the lenders to give us the go ahead and put them on the market. The banks are employing a good strategy: they’re watching the market improve with multiple offers and over-bids and waiting for greater stabilization to lessen any of their losses.

So that’s a summertime “good news” update of where we’ve been over the past three months. Enjoy the sunshine, and please think of us with any of your referrals, or for even just an “equity checkup.”

Best from us all!

Mike Lebecki
Re/Max of Santa Clarita
mike@tracy-mike.com
661-284-5030 (o)
661-284-5031 (f)
www.tracy-mike.com

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