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We're one week into the New Year , but that's not stopping market "experts" from predicting 
what's in store for 2009.
The predictions on housing and mortgage rates run the gamut:
After interpreting and analyzing it all, what becomes crystal clear is that the experts have no better idea about what the future holds than you or I. Their guesses are educated ones, but they are guesses just the same.
So, before you embrace economists' predictions about the demise (or recovery) of the broader economy to make "personal economy" decisions, consider that the all to often quoted experts have a much better track record analyzing the past than predicting the future.
All we know for sure right now is that home prices and interest rates are lower this year than they were the same time last year. By 2010, both could be even lower.
Or maybe they won't!
Increasing home sales, declining home prices, stricter loan guidelines, and the financial market meltdown all contributed to a turbulent year in our California housing market, according to the recent California Association of Realtors (C.A.R.)Housing Report I read this week. The report noted that approximately one in five home sales in California were the result of foreclosure, short sale, or borrower default.
Sales generally improved over last year in all parts of the state, with significant price declines leading to sharp increases in the Central Valley and Southern California, C.A.R. said. Realtors attributed the increase to the growth in the absorption of distressed properties with mark-downs in prices.
Reports show the market continuing to experience large decreases in the coming months before leveling out in late 2009. The California median price is expected to further decline by 6% from $381,000 for 2008 to $358,000 for 2009. Realtors noted that affordability was high for first-time home buyers increased dramatically (approx 53%) during the third quarter of 2008 resulting from this decline in median home prices.
Increasingly restrictive lending standards and the credit crunch resulted in the inability for many other first-time home buyers to qualify for a mortgage loan. Because of the ongoing turmoil in the financial market, many lending institutions declined loans that were considered risky, especially jumbo loans with amounts that exceeded Fannie Mae and Freddie Mac guidelines.
As conventional loans became more difficult to obtain and the credit crunch contracted further, the percentage of FHA loans increased significantly in California. FHA loans typically require lower down payments and have less rigid credit-qualifying guidelines than conventional loans.
C.A.R. attributes this significant gain partially to the Economic Stimulus Act of 2008, which temporarily raised the conforming loan limit in high-cost areas from $417,000 to $729,750 until December 31, 2008.
Other highlights from the C.A.R. Housing Report included:
Because of the massive and wide-spread use of sub-prime mortgages over the past five years, the foreclosure crisis has created an historic level of REO properties hitting the market; A trend that has contributed to declining housing prices and created a whole new level of affordability for buyers. Reports show that residential real estate investment activity in California has grown upwards of 65% in the past year alone with real estate investors the most rapidly growing population of buyers.
We try to make a significant effort to market REO properties to low to moderate income homebuyers that were previously priced out of the market. First Time home buyers that want to get the most value for their first investment should consider REOs as an affordable housing option and turn these losses into new beginnings.
There are real benefits to buying an REO:
If you decide that an REO is for you, we'd love to help make your purchase a successful one.
Today's real estate market has changed and so have I; I now successfully work for an Asset Management company in the preservation and sale of REO Properties in So. California’s Inland Empire.
This is not just another blah, blah Blog; I'm actually on a mission and this is a blog with a purpose. My interest in the REO real estate market has brought me here. However what I have found is that REO real estate is no secret and everyone wants to break in. I have also come to realize that this business is more than how much you know, it is very much a business of who you know. So how do you get to know the Players? Or get them to know You! By giving them the address to your REO blog and encouraging them to visit you . . . online!
Now that you're here, I'd like to take this opportunity to cordially invite you to grab a cup of coffee, sit back, relax and browse around to get a better idea of who I am and how we can be of service to each other. I've been a successful Realtor for over 15 years. I've never prided myself as being #1 because I've always given my Clients that position. I've never thought of my profession as a job. My professional designations, certifications and affiliations were all attained and maintained to better serve my clients and customers. I love what I do and strive to make sure that whatever I do reflects the experience and pride of a professional working at what they love.
Early on I knew that all successful relationships begin with give and take. So I originally began to design this blog as a Consumer Service in an effort to better educate and inform because it's often difficult to get relevant and up to date information on the buying, selling and refinancing process without being actively solicited. As this market has changed, so has my vision for this blog. As hard as it is for the consumer, is as hard as it is for the average professional to get relevant information on the default, foreclosure and REO process. I now strongly believe that building a dynamic professional knowledge based resource network will lend positively to our successful survival in today's emerging market. I'm hopeful that this blog can become an opportunity to share information, knowledge, and ideas on how to become more proficient and provide extensive marketing resources that help us all move properties quickly and more efficiently. That would be a win-win situation, don't you agree?
Thank You Active Rain for providing such a great forum to build this network on.
"I love Selling Real Estate; I love being a Realtor; and I love Our Community! Last, but not least, I love having the opportunity to be of Service to you.
Today's competitive REO real estate environment is no place for unskilled beginners. I realize that REO Sales Specialists/Asset Managers work hard to achieve the highest net recovery possible because today's Shareholders demand that foreclosed assets convert quickly back into working capital. They are looking to align themselves with aggressive real estate professionals that utilize creative and innovative marketing techniques to minimize credit losses and increase their company's profitability. My desire is to offer more than just knowledge of foreclosure real estate. I want to be a resource to both entry-level real estate agents and skilled REO specialists; I want to offer resources to find REO business, maintain the business, improve your technology, improve your sales in REO and elevate your level of REO professionalism. Through our collective expertise, it's time to help Elevate the Standards of the REO Profession through education, valuation and marketing.
"I wanted a place of my own...someplace I could call home without worrying about the rent going up or how noisy the neighbors would be, moving into the vacancy above me. I was ready for ROOTS. Mykel helped me find them. She showed me what I could afford, and some creative ways to afford it. I am now in my very own home for the first time ever! And as I look around, I am so happy to see my new couch in my new living room, the new big screen TV in my family room and my son playing in his own backyard. Now when I come home, I'm really Home. I can't say Thank You enough Mykel, for making it all possible!"
- V. Martinez
Mykel Martin? We were so lucky to have found her! She's enthusiastic, energetic, hardworking, extremely knowledgeable, honest, empathetic, resourceful, and an exceptional negotiator. She really enjoys her job. We just can't say enough good things about her!
The Henderson Family
Mykel's excitement and enthusiasm for her business made a great first impression on us. Her professionalism and level of knowledge has made a lasting impression. We would highly recommend her services to anyone looking to buy, sell or invest in real estate.
Mr. & Mrs. W. Cole
"We just wanted to express our appreciation to you for assisting us through a very difficult time. The thought of losing our home was devastating. Our mailbox was full of mail from Lenders, Attorneys and Real Estate Agents predicting all sorts of gloom and doom and making all sorts of empty promises. We quite honestly didn't know where to turn. There was something very different about your approach. You seemed genuinely interested in helping us and educating us to the various options that were available to us.
Your patience, knowledge and experience made all the difference in the world. Thank you for saving us from foreclosure. We only wish we had responded to you earlier. You were certainly a blessing in our lives at a time when we really needed one. They say you're supposed to pass a blessing on and we won't hesitate to refer you . . . Especially to anyone that might find themselves in our unfortunate situation."
Sincerely,
Mr. & Mrs. K. Smith
"How wonderful it must be to be a part of God's plan for so many families! Thanks again, Mykel for making this unpleasant process much easier and timely. I don't think we could have found a better Realtor than you. Your sensitivity, guidance and reassurance have helped us to clearly define a plan of action. We will definitely be calling on you to find us another home as soon as our financial picture clears up. Take care and God Bless You."
-The Roberson's
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