Economists feel that the housing market will be even better for home buyers in 2010, even though Uncle Sam has given fair warning that they may not be as supportive of the mortgage market in coming months.
Reports suggest that three million homeowners are 90 days or more past due on their home loans, which leaves few options for lenders. Since most homeowners are not qualifying for loan modifications (and those that do still have an 80% default rate) the options are either a short sale or a foreclosure. Either option brings substantial more inventory to the market.
There are stimulus plans being considered that will incentive lenders and sellers to pursue a short sale instead of a foreclosure. Rumor has it that the government will offer home owners a $1500 payment at close of escrow when they short sale - with an additional $1000 going to the lenders. It's great for the homeowner....but why are we paying the banks any more money? Haven't they already benefited from the original bailout? Why should we continue to reward bad behavior. I'll table those thought for a future blog...
What does all of this mean? I feel that great real estate buys will continue well into 2010.
If you are thinking of buying a new home, a vacation home, or investment property, it is not too late for an incredible deal.
If you're on the other end of the stick and you need to sell -do it sooner rather than later. There is a shortage of inventory in several cities in the San Francisco Bay Area.