Fremont, CA

The market statistic for Fremont, Ca. for 1-12-12 show that inventory has moved up slightly from year-end 2011 but is still far lower than the inventory figures for the end of September, 2011.

It does not matter whether you are considering the purchase of a condo, townhouse or single family detached home. It does not matter whether you want a traditional sale, short sale, or REO – or if you would rather steer away from REOs and short sales – inventory is thin.

What does that mean? The law of supply and demand has not been repealed. Demand may be down due to prevailing economic forces. But demand has not disappeared. Supply is definitely down. There are obviously fewer houses for sale than in the recent past.

If you see a well located, attractive home, other buyers will also find it. That home will get lots of attention. If it happens to be competitively priced it will probably receive multiple offers. It may even sell for more than the asking price. That is how the law of supply and demand works in Fremont, Ca. and everywhere else.

By the way, unattractive REO’s are also selling with multiple offers if the offering prices make sense. The same can be said of short sale houses.

Prices have tumbled from the height of the market. Interest rates are at record lows. Do you really think that you can “time” the market? Now is a good time to buy.

Multiple offers!!?? What?? In Fremont, Ca. How can that be? All of the news stories are stressing that the economy is still poor, home sales are poor and home prices are not going up. The prevailing wisdom among many people with whom I speak is that low-ball offers are the way in which buyers should make offers these days. At least that is what buyers tell me.

Well, I don’t think low-ball offers will carry the day when there are 30 offers on one house! Wow! Thirty offers! What year is this? Are we in 2004?

Not only did that house receive a surprising number of offers but the house itself is an REO! Aren’t REOs supposed to sell at a big discount from the market price compared to a “normal” sale? At least that is what buyers tell me.

The house is question is located in the attendance area of one of Fremont’s desirable schools. We all know how important location is when it comes to real estate. While the house is an REO, it does not appear to need much work to make it move-in ready. The list price was realistic.

What happens when an attractive, well located, well priced home goes on the market? It sells – often with multiple offers and over the asking price. That is the market at work.

I recently listed a short sale townhouse. Within less than two weeks, three offers came in. All were strong. One was cash. The real estate was listed at a price that the short sale bank will probably approve. No raving deal for the buyer but a fair price, in my opinion.

It is too early to know the final prices of either of the properties cited above. What we do know is that inventory is slim. Buyers are looking for real estate that makes sense. Attractive, well priced, well located properties will get lots of attention and will sell strongly.

Prices have tumbled. Interest rates are at record lows. The window of opportunity to buy the real estate that makes sense for you is wide open.

Market Statistics for Fremont, Ca. 11-22-11.

Who says it’s a buyer’s market? One of the major facets of a buyer’s market is that there are lots of choices for buyers. In other words, there is lots of inventory. Not so in Fremont right now. In fact, the available listings of single family homes have plummeted. How much of the decline is seasonal? Who knows? I think we can expect a continued decline through December. January often is in line with December with an uptick in inventory normal in February. We shall see.

So what do these statistics that are evidence of shrinking inventory mean? Well, if you are a buyer whose intent is to write low-ball offers because you are hoping for a DEAL, you might want to rethink that strategy.

Greece, the Fed and Inflation—Oh, My! How Do We Get Mortgage Interest Rates?

First, here’s how we don’t:

There are three common misconceptions about how mortgage rates are determined: 1) solely by each lender, 2) by the Federal Reserve and/or 3) based on the 10-Year Treasury Note. There are still mortgage professionals claiming rates are based on the 10-Year Note. Wrong!

Now, here’s how we do:

While there are several generic interest rate trend indicators, rates can be influenced at any given moment by at numerous different variables in the market and with each individual loan approval scenario. The mortgage rate marketplace is dynamic and complex.

Lenders set their rates every day based on the market activities of Mortgage Bonds, also known as Mortgage Backed Securities (MBS). A lender might adjust their pricing up to five times in one day depending on what’s taking place in the market. A printed rate sheet can become obsolete the moment it is printed!

So what are the major influences on Mortgage Backed Securities (MBS)?

1. Inflation
2. Federal Reserve Actions
3. Unemployment Figures
4. Gross Domestic Product (GDP) Figures
5. Geopolitics – Unforeseen events related to global conflict and political events

Why does this matter to you?

With multiple market indicators reporting and changing throughout any given day, timing the market for the best possible opportunity to lock a mortgage rate on a new loan is a big challenge. Top notch professionals have access to real time market data and expert analysis to guide them. Don’t work with a lender that doesn’t! Why? Because your loan’s interest rate determines the amount of lender credit you will receive for your closing costs! Locking an interest rate too early or too late can be an expensive error for which YOU end up paying!

Home shopping or refinancing and want to learn more about interest rates? Watch this video! For more information and a real time look at the mortgage market, please call me at (916) 849-9200!