September Real Estate Newsletter

Wow!!! The market has been crazy.

• Foreclosures, bank owned, and REO are still driving the market.
• Number of solds is still high but off from the peak. ~8,000 closed in Aug compared to ~9,000 in July.
• Historically, Sept - Feb are slower months.
• Homes well priced are getting multiple offers eg 10 or 15 after being on the market for 3 days or so.
• The rank order for offers: Cash is king - no appraisals needed and ability to do quick closes, Conventional is next since appraisal are not as strict as FHA and FHA is last since apprasials are most strict and they cant write contracts on investors fix and flipped homes until the 91st day.
• According to Case-Schiller report, home prices have stabilized and have come up slightly
• The tax credit is ending Nov 30, 2009. Count down is on with just ~ 70 days away. There is discussion of extending it but nothing has been approved.
• 1.4 M people have used the homes tax credit and it is forecasted a total of 1.8 M will use it.
• For those trying to modify your loans, some people are starting to get the banks to get interest reductions, extend loans to 40 years and reduce principal. It is not hugely common but it is still happening.

Anti-Flipping Regulations for FHA / USDA/ VA / Conventional

• FHA / USDA - both require that the Seller have title to the home for 90 days before a contract can even be written, unless the Seller is a bank or bonified financial institution.
• VA - no anti-flipping regulation
• Conventional / Jumbo - no Fannie or Freddie restriction, but many lenders 'overlay' their own requirements, so check with your mortgage lender if the home has changed hands in the past 90 days.

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