My New Blog

I am not sure what the media and news are reporting on but most of my friends in the Southern California real estate market are so busy we can barley keep up.

Of course it comes in waves but there are fantastic deals, investors, first time buyers, refinances everywhere.

The banks have begun to loosen up on the super strict guidelines of the last year and prices are low enough that almost anyone can afford to buy.

They are even bringing back stated income!!!!

It seems that 50% of the activity is 1st time buyers, 50% are investors.

There are NICE condos for 250k, NICE SFR's for 400k.....

It really does appear that the market is at or near the bottom.

Banks are no longer taking "lowball offers". In fact they won't even consider them.

We are seeing more sellers who think they are in control again...(not yet, lol)....Think is the key word...

Anyway careful what you see in the news because they always focus on the bad.

We have been thru the bad and it looks like we have found a happy medium...

Speaking in a Bloomberg Television interview, noted hawk Philadelphia Federal Reserve President Chuck Plosser said the Fed may have to hike rates even as housing prices continue to fall.

Plosser commented that the economy has not changed much in the last few months and that rising prices pose the biggest challenge to the economy. Plosser noted that price pressures are moving through the economy and that the Fed may have no choice but to raise rates.

Plosser acknowledged that financial stability is an important consideration for the economy and that the Fed must take action before price expectations become "unhinged". Plosser added that the Fed's credibility must be reinforced by action.
Plosser warned that high inflation expectations will result in firms passing on higher costs to consumers. He warned that a slackening economy does not necessarily contain inflation pressures.

"The U.S. economy is on a road to recovery, but the road will be bumpy," said Plosser.

Plosser admitted that no one knows if the worst of the credit crisis has passed. He pointed to the recent GSE turmoil stating that the turmoil posed a risk to markets and this made the Fed's job difficult.

By Steve Stecyk and edited by Cristina Markham
©CEP News Ltd. 2008