2008 Real Estate Market Outlook

There is good news!! Mortgage rates (especially for loan amounts $417,000 and below) are at 18 months lows. Rates today (01/17/2008) are tracking 5.5% - 5.875% on rates 30 year fixed. 3, 5, 7 and 10 year hybrid fixed/ARM rate loans are also hitting 12 month lows. A 3 year fixed this morning (01/17/2008) is at 5.5%
What does this mean? If you have a loan that will adjust in the next 12 months call us!! It is worth working the numbers. If you have a second on your property, you may be able to refi the first only!!
Values are still playing a big roll in re-finances. If you purchased or refinanced late 2005, 2006 or 2007 we will first take a look at values.
Also, the FHA Secure loan introduced by the governments to assist those who have loans adjusting and who will not be able to afford the new payments is a true and viable solution. There are tight guidelines, so PLEASE call us for details.
Rates for loans $417,000 and over are tracking in the 6.25% -6.75% range. The rules of mortgage financing have not changed…credit score, fully documented income, and money in the bank, and value for refinances, are still the guiding principles.
The number of institutions lending money is still shrinking. We are all aware of the proposed merger of Bank of America and Countrywide Home Loans. We are likely to see more of that. Many rumors are out there about other proposed mergers.

What is happening in Real Estate? Well… values have trended down in most counties in California. However there are areas that have shown increases from 2006. For instance 29 cities in the County of Los Angeles had an increase. Manhattan Beach had a 50% increase with 21 sales in the month of November. Culver City had a 45.4% increase with 23 sales. The city of Los Angeles had a 5.77% increase with 485 sales for the month of November.
Next month on our conference call we will talk about other areas across the nation that are showing promise. One area - NEW ORLEANS!

This morning (1/17/2008) on CNN, they talked about the rental market. And if rents were up or down in areas as a result of foreclosures and sellers who can’t sell. In Atlanta, Houston, Washington DC and Phoenix, rents are down. But in New York, San Francisco and Boston rents are up.
Multifamily residents has the most potential for expansion. Because many 1st time home buyers have opted to wait, those who have lost their homes have returned to the rental market.
So negotiation is KING! If you have decent credit, money and verifiable incomes negotiate on short sale/foreclosure properties. There is true long term benefit. We will also talk about partnering and investment club benefits.
Don’t be scared!! Now is the time!