End of Summer Listings
As the end of summer approaches, we find ourselves in a very mixed and volatile real estate market. The continuing effects of the subprime meltdown have moved into the Alt-A loan market and the CDO market. This has resulted in tighter loan standards for the first-time buyer to the move-up buyer.
One of the results is that Jumbo loans, those over $417K are being affected. Everyday we here from mortgage brokers and real estate agents about deals falling apart. We read a story a week ago about a buyer with 20% down and an 800 FICO score being rejected.
While reading all the press and coverage on the housing market, it is easy to lose sight of the bigger picture:
- There are about 44 million institutional mortgages in the U.S.
- About 5 million of these are subprime loans
- About 625K of these are in default
- Maybe half of these will go through the entire default process
How much does the lender lose on a foreclosed house? 100% of loan? No, the house sells for something. 90%? 80%?
98% of the mortgaged homes in the U.S. are not at risk.
Q: How Big Is the Sub-Prime Mortgage Market?
If you’re looking to buy, this is really a good time – if you have good credit and money to put down.
Why? Interest rates are low and there is considerable pressure on sellers to lower the price and throw in an incentive or two.
Here are the new listing presentations this week for San Ramon, Danville, and Alamo, CA:
- 207 North Hill Court, San Ramon
- 394 Ilo Lane, #703, Danville, CA
- 106 Kingswood Circle, Danville
- 305 Live Oak Drive, Blackhawk
- 135 Briar Place, Danville
- 2757 Deer Meadow Drive, Blackhawk, CA
- 533 Treyburn Circle, San Ramon
- 3835 Crow Canyon road, San Ramon
- 2053 Echo Place, San Ramon
- 1450 Laurenita Way, Alamo
- 2900 Danville Boulevard, Alamo
