The U.S. Army Corps of Engineers released a statement with updated information on the Lake Isabella Dam project.Â The project will include major improvements to both dams including raising the overall
A study that was just released that stated that 76% of home sellers see the value of their house as significantly higher than their agents recommended listing price.Â This number is up from 73% last
There are a few major indexes that track housing prices.Â I was interested to see what the Case-Shiller report stated before evaluating where we are.Â This is national data and obviously dose not
Interestingly in the very short term, the downgrades have not seemed to put any pressure on mortgage rates...yet.Â The 10-year treasury note has fallen to a record low.Â This is good for mortgage
The attached chart shows a break down of market activity by area.One of the more interesting aspects of this chart is the large difference between how many new listings there are and how many are sold.Â The
I do agree with Virginia about the "shadow inventory, the constant government mettling" points. However, with respect to "demise of Fannie and Freddie"? Don't expect that to have a sudden or direct impact on the RE market overall.
The phase out program the AEI is proposing when and if it is implemented, and I'm certain that it or something very similar will at some point materialize, is a 5 year plan calling for a gradual 20% per per year phase out of Freddie and Fannie. During this time it will allow private money to gradually start phasing into the financial landscape.
I'm not nearly as concerned about F & F as I am about unemployment. Housing starts will take care of itself as shadow inventory continues to be assimilated. There will certainly be an increased demand for new homes but I rather doubt that we'll see the hysterical and rampant feeding frenzy of the late 90's and early 2000's anytime soon.
Virginia, you're echoing my thoughts when you say, "It's already pretty clear that prices aren't doing this now in several parts of CA" As I intimated in a previous comment, "I still think we will see some appreciable upward mobility in many areas of the state. I am concerned about certain areas i.e. the Central Valley, parts of the Riverside and San Bernardino Counties, the Northern California Coast and parts of the Sacramento. There's still going to be some payback there due to high unemployment and large distressed property inventories."
"But once again, most of the coastline from Mendocino to San Diego to about 10 miles inland, which accounts for about 2/3 of the population in Cali will see some better days ahead during the next five years. I revert to the facts that California is and will continue seeing a proliferating influx of foreign investment".
As a closing thought when you really look at it California is still one of the wealthiest places on the planet. If you take government debt and politicos out of the equation there's an overwhelming amount of wealth in California, much of which is just sitting on the sidelines waiting to park itself somewhere. I wouldn't throw the towel in the ring quite yet. Look for California to pull America out of this quagmire as they have so many times before.... more
If, if, if. If lenders had correctly priced the risk, which they could've done if they were a tad more particular about proofing those loan apps, and if the secondary market had inspected the product before they purchased it, a lot of this wouldn't have happened.
People like to reference the tulip bubble, but I'm pretty sure that people weren't palming dandelions off as tulips, the way loan originators managed to get fraudulent or falsified loan packages passed off as genuine.... more