Real Estate, Economics, Finance

2008

2008-11-28T21:00:00.001-08:00

Slowly approaching year end and it's been a tough year in Real Estate and the economy. News after news of bank failures, slow sales and home foreclosures. A lot of positive consumers out there, however. For some, this year was a great opportunity to get into a home that is affordable and at low rates. I thank all my clients and business partners for the great year I have had! Continue to be positive, the market will come back around and things will get better. The numbers are truely showing positive signs in Orange County. Numbers are what we need to see not the negative press. We're all in this together as a entire economy! Here's to 2009!

Stats

2008-08-23T09:54:00.001-07:00

OC Sales are up 18% from last year. We had a pretty tough start from August 07 to Jan of 08 but this year is coming out very strong. Of course, prices are down 38% from last year but what goes up must come down. Great deals out there. Renters are seeing a lot of opportunity to purchase with a low down payment, 30 year fixed loan that puts them a little over rent prices but home ownership is definitely worth the extra money. I guess you can compare leasing a car to buying a car. A little more a month to own but with Real Estate it's potential appreciation and an investment over the long hall. My clients have been very good to me. I get great referrals and appreciate the loyalty. Can't do it without you! 7 years in this business has paid off and I'm really looking towards building all of my clients' wealth in the next 5 years. It's a great year to buy or upgrade!

Market Updates

2008-05-07T18:38:00.001-07:00

Been awhile since I wrote. Such a busy market for me. Great time to buy. Prices have come down a lot to make it very affordable for consumers to buy. Many first time home buyers who have been on the fence are getting into homes and payments are very comfortable. Very close to renting. In Garden Grove alone, 89 SFRs went into escrow within 1 month. There's definitely demand in the market. News still making it seem like a bad market but the same negative news has been published everyday for the last 5 or 6 years in Real Estate. Ultimately, if you renting and buying make sense and the payment is comfortable.....there's no reason not to buy. Rates are still historically low and FHA is making it doable to obtain a loan without 20% down. There's no down market here. My prediction, 1.5 year turn around in the market.

Banking System Running Out of Funds

2008-03-11T20:22:00.000-07:00

I've been analyzing the market and haven't had that much to write about but now I have to say, that sooner or later our banks will run out of funds to lend. Although we have stimulus packages, confirming loan limit increases, ultimately, if the bank holds more property then mortgages we're not going to be in a better place. Surprisingly, activity has increased within the O.C. area. If your priced right you'll get the multiple offers. We're not in a bad market, we're just in a changing market. Still need to filter out some bad "professionals" and we'll have a healthy market soon. About rates, we're still "historically" low but seems like consumers think it's still high. Until next time....

BofA's Purchase of Countrywide

2008-01-17T11:59:00.000-08:00

Sorry haven't written for awhile. Business is going so well! It's going to be a great year for 2008!

Most of the news hasn't been worth writing about but this topic is pretty impressive. Although, I don't like banking w/BofA because of the non-sense fees they charge. Overall, I think they're a great company. Very conservative as far as lending is concerned. So the fact that they purchased CW....makes me impressed because as much as asset managers are unloading, BofA is purchasing the largest mortgage lender to add to their portfolio. What does this say? Maybe not short term gains but BofA see's a long-term gain in Real Estate and Mortgages. As much as I don't have a crystal ball, things will get better soon. Downturns happen but with positive outlook on the economy and overall well being....this "credit crisis" will long be over and just a part of history and past mistakes.

I'm totally for the purchase and think BofA made a great choice. They're a great bank and they got a great deal!

Happy 2008! Let's be Positive!

CNBC.com: VIDEO: Investing in Real Estate

2007-11-16T21:39:00.000-08:00

Wanted to share this video:

Investing in Real Estate Real estate mogul Donald Trump discusses whether now is the time to buy real estate, particularly properties in foreclosure, with CNBC's Erin Burnett
http://www.cnbc.com/id/15840232?video=561989966

Investors know, best time is to buy when market is down. Pick up income property or buy that home you've always wanted.

Budget and Save

2007-11-09T21:08:00.000-08:00

Markets like this is a good time to re-think your spending habits. I know..I know...it's tough but eating out less, buying less junk or brewing your own coffee will save you big time later. Start paying down credit cards with the highest interest rates and put more to savings. Email me and I'll send you a spreadsheet to start the process.

Orange County-Local Market Conditions

2007-11-06T09:24:00.000-08:00

CAR (California Assoc. of Realtors) released numbers for this year.
Peak Month Apr-07
Peak Price $747,260
Aug-07 Median $710,380
% Chg From Peak -4.9%

-4.9% isn't bad. The media has Sales and Price confused. That's what consumers read but prices are not down much considering we've had a double digit return in the pass 4 years. The negative price change also reflect the Subprime problem so we're still in good shape. If we did a negative 50% on prices then we have a real problem on our hands. However, if you do the math on a $400k home w/14% interest versus that same home at $800k at 7% interest the payments are pretty darn close. The good thing of buying at $400k is that your property taxes are lower but finding that "perfect" home might not be at $400k. Conclusion, if you're a buyer and found a home that you know you will not find again..buy it. As for seller's, your home doesn't have as much "equity" as you think it does, it was unrealized gained to begin with. The good thing for seller's is that once you sell you can buy in low. It's all relative. Home ownership shouldn't be a gamble. Get into the right loan, pay your mortgage and enjoy your home.

FED Reduces Rate-Good or Bad

2007-11-01T11:22:00.001-07:00

It's not going to get buyer's out because the reality is, is that some cannot afford or qualify, regardless. The only thing that worries me is that consumers might spend more on other things to increase debt. Reducing the rates will assist the current ARM holders, 2nd Trust Deeds and assist lenders to re-structure borrower's loans. Let's just hope consumers don't go on a spending spree. If only we can control spending in a direct way. Email me if you need help budgeting. It's my area of expertise.

Mortgage Mess-Blame Game

2007-10-28T19:39:00.000-07:00

Lenders blaming brokers. Brokers pointing back at lenders. Consumers upset at lenders and brokers. All in all, no one was complaining when money was being made including Asset Managers, Lenders, Brokers to Consumers. Politicians are taking congressional action now but the bottom line is everyone should have stopped and taken a breathe. I agree that professionals should be communicating with their clients and providing them long-term professional advice. However, many "professionals" spurted up during the creation of these ARM loans so they themselves didn't know the benefits of a traditional 30 year fixed vs the ARM or let alone the negative affects of no doc, stated income and full doc loans. Lenders came up with these products and guidelines because financing was so cheap. Then came a market flooded with brokers, wholesale lenders and direct lenders. Consumers then flooded the market attempting to flip homes and get rich quick. Some made it out with a nice sum of money and the remaining left with bad credit and no home. It's a tough situation to grasp but it's a reality. High risk gives high rewards if you make it to that point, however. I do feel for consumers because they're the little people that will take much longer to recover then the banks. No one could have predicted this downfall in the market, not even Alan Greenspan. Sometimes it helps just to be the "conservative" consumer as half of the world is and they're fine. Professionals should take time in their day to lend a hand by listening or giving consumers options because the guy that sold them "that" loan is long gone and it's up to us "long timers" to give back to the community with knowledge and options that banks are not. Fortunately, none of my clients are in this situation but the least I can do is help with the knowledge that I have.