Loan Modifications/Short Sales and other options

Options I learned about recently for those hoping to get their loan modified…

Government Assisted Refinance: Federal Homeowner Affordability Refinance Program http://www.makinghomesaffordable.gov

Loan Modification – Federal Homeowner Affordability and Stability Plan, for those that do not qualify for the above: http://financialstability.gov/impact/contracts_list.htm

I have more information on these programs and on short sales/foreclosures/bankruptcy options – let me know if you want it, email me.

Tracy Pina

High End Prices: Still coming down

Total sales volume of high end homes in 2009 has made up of only 2% of sales v. 4.4% in 2008.

In 2008, 40% of buyers were move up buyers, thus far in 2009, only 15% are move up buyers. I believe this more reflects a surge in volume in the low end rather then a significant slow down in the high end. That being said the high end is slower – the data…

Average days on market for luxury homes in the Bay Area is up 67%. In the SF Bay Area there is approximately 18 months of inventory for sale in the high end. This means if you have a home that equates to high-end/luxury in your market you can expect it to take 18 months to sell.

Pricing in the high end is down from 5% to 25% depending on location.

The good news for buyers/not good news for sellers, The Wall St Journal recently published an article quoting a JPMorgan analyst saying that high end real estate could fall as much as 60% off its high and that they do not expect a rebound until 2013. No doubt the U.S. Government will do all it can to bolster the high end and prevent this from happening however this being in print alone may put pressure on the high end – as you are well aware the media has a way of driving consumer sentiment.

Questions? email me, Tracy Pina

What is Happening in Our Local Market

• The Sweet Spot: $300K-$800K – this is where the majority of activity this year has taken place. This is where we are seeing multiple offers and stability.

• Continued strong volume in the lower end with purchases being powered by cash. Investors, notably from the East Coast and China, are buying California real estate – unfortunately making it tough for first time homebuyers.

• Foreclosures are still the route de jour for the banks – they are able to write off losses this year against gains from the past 3 years (this was extended from last year), BUT short sales are getting approved to a degree – just depends on the numbers.

The Intero Insider

The Intero Insider

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Real Estate: Moving into the hands of the U.S. Government

With congressional elections coming in 2010 the new administration has a window of time to correct the housing market and reach “stability.” They have exercised control over the market thus far - although it may not be transparent. As with many other U.S. industries, there have been increased regulations for the benefit of the end consumer.

The U.S. Government now has a substantial ownership in U.S. banks, 26% ownership for example in BofA. Where we have seen control being exercised besides their ownership and say in bank activities on the selling side (REO inventory flow) is through increased truth-in-lending regulations and timelines for delivery of disclosures to the consumer (the buying side).

At the end of the day what does this mean? It means the probability of longer contingency time frames and longer escrows BUT it also means we will reach stability – in fact we have to a degree. In many markets we are back to multiple offers and stable prices.

It’s a balance of supply and demand that so far is working.

For more info email me.