My New Blog

It seems as thought the worst might be behind us.

The last few years in the housing industry has been a wild ride of ups and downs.(mostly downs)

We have seen prices drop, rates drop and rise again, bank rules tighten and now it seems loosen a bit.

In southern California many banks are eliminating the 5% declining market hit to their max loan amount. This means they will now loan up to 100% again.

Does this mean they think we have hit bottom.

Lets look:

Since last year inventory is up slightly, but sales have almost doubled in So Cal.

Since last year new home inventory has gone down.

Affordability is up to where the average household can almost buy an entry level home.

I know many many agents and loan officer who are SWAMPPED with business.

Investors and first time buyers are everywhere. They are driving the market.

It seems the banks have cought on to this and are loosening the reins a bit to make loans a bit easier to obtain.

There are even some FICO exceptions too.

Heck I actually saw a positive article on the news and newspaper stating the market has improved.

Maybe it's too soon to tell but it seems like it might be time to look up and see the bright future.

All of these things are adding up to some light at the end of the tunnel.

Jumbo mortgage rates and conforming rates have come down but are on the verge of a potential upswing as the bond market suffers.

In southern California we are experiencing a surge in home shopping activity. Many people are making multiple offers on the great deals that are available.

Lending standards have eased up a bit and are much improved over the beginning of the year. This is also helping to fuel the summer rush.

New home sales unexpectedly rose 3.3% in April, the first increase in six months, the Commerce Department said May 27. As a result, the inventory of unsold new homes fell slightly to a 10.6 months’ supply versus the 11.1 months’ backlog recorded in March.
The Commerce Department further reported that the median price of a new home sold in April rose to $246,100, up 1.5% from April 2007. In a separate report, however, the Standard & Poor’s/Case-Shiller Index showed existing home prices falling 14.1% in the first quarter of 2008, compared with a year earlier, the biggest year-over-year decline since the index began in 1988.
For the week ending May 29, interest rates on 30-year fixed-rate mortgages rose to an 11-week high, Freddie Mac said.
More mixed economic news came from the industrial sector. Orders to U.S. factories for durable goods — those expected to last three or more years — dropped 0.5%, dragged down by big declines in demand for commercial aircraft and autos. However, excluding transportation, orders rose 2.5% in April, the biggest gain in nine months. Orders for electrical equipment and appliances surged 27.8%, the biggest increase on record.
Another boost for the economy came on May 29 when the Commerce Department upwardly revised first-quarter gross domestic product or GDP — the total tally of the nation’s goods and services — from its previous estimate of 0.6% to an annual rate of 0.9%.
Finally, despite the government’s sending out billions of dollars in stimulus checks, consumer spending nudged up a small 0.2% in April, half of March’s increase, the Commerce Department said May 30. Personal income also edged up 0.2% in April, again half of March’s 0.4% increase.
This week, watch for the May unemployment report due out on June 6.

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