Real Estate Market a Bumpy Road

In Real Estate school one of the first lessons that they teach you is to put a happy face on the market, no matter what. If someone asks you how the market is we are taught to answer with stock answers like “It is unbelievable.”  That is an evasive answer and today we need straight answers from straight shooters. Not a bunch of candy-coated fluff.

The truth is that this is a very tough market that is now shifting and turning on its way to a slow recovery. I have six great listings that are priced well and marketed as well or better than my competitors. They are all above the $700,000. price mark and right now that sector of the market is not there.  There have only been a couple of sales in that range recently and it is baffling.

The hot sector of the market is below $400,000. Those homes are moving rather briskly. One reason may be is that we are having more REO’s on the market. Those are homes that have been repossessed by the bank and are on the open market with very little hassle to purchasing them. It was only a couple of months ago that we saw almost all short sales. Those are anything but short. It can take months for that process and many times it does not work out.

One reason that I believe we are at the phase that we are at is it is getting easier to purchase those distressed properties. Hunt Conrad of Prospect Mortgage was showing me a great website that I knew about but had not used a lot. It is www.Homepath.com.  This site has tons of homes that are very affordable and easy to purchase. “The beauty of these is that if they are in need of repair there is an optional loan for these homes. It is the Homepath renovation loan where you can add $35,000. to the loan purchase price to fix the home up with new carpet, paint or curtains.

Because it is getting so much easier to these distressed homes the rest of the market is languishing for bit. This will of course change soon and is just part of this recovery. It is a process as well as an event! (con't below Open Houses)

OPEN HOUSES

$429,000. 538 Sanns Lane, Healdsburg, 3Brm, 2Bth Century 21 NorthBay Alliance

$429,000. 1168 Mitchell Lane, Windsor, 3Brm, 2Bth Century 21 NorthBay Alliance

$1,099,500. 814 Alexander Valley Rd. Healdsburg, 3Bdrm, 2Bth Rege Real Estate

$1,675,000. 5201 No Name Road, Healdsburg, 3Bdrm, 2Bth, Wine Country Group

$725,000. 523 Mason Street, Healdsburg 3Bdrm, 2Bth Stornetta Realty

MARKET SNAPSHOT (cont.)

Rates have gone down even further this past week. It's at 4 5/8ths for a 30 year fixed rate. We are expecting rates to go up at the end of QE2 which is to end in June. QE2 is the government purchase of mortgage securities which have kept the rates low. Those securities will soon be sold on the open market. The general public will now be purchasing these securities and will demand a higher return than the Fed did. This is expected to push rates up in June, maybe.

The gross domestic product report this week was not so favorable, nor was the unemployment numbers. That was pushing the stock market down which will raise the bond rate which will keep rates down. Aye, Aye, Aye Aye, Aye!  

The best investment that you can make NOW is to support our youth at the Future Farmers Fair this weekend. An investment in youth is one that will pay you back for years to come. All money that is raised at the fair goes directly to the youth of our community.

I was a 4H leader for years and years and the kids that are showing at the fair this weekend are that last group of kids that I had the honor and pleasure to work with. The rest are all to college and this year’s class is the last that I had the chance to be a part of. If you see me a little, actually a lot choked up you will know why. It was the best investment that I ever made.

Good luck, kids! We are so proud of you.

For more information visit me at www.Healdsburgrealestate.com