California’s Chief Real Estate Economist says California has a Bi-Polar Market

Leslie Appleton-Young, V.P. and Chief Economist for the California Association of Realtors, recently addressed a crowd of about 700 real estate professionals in the East Bay.

“California has a very distinct bipolar market,” said Appleton-Young. She is referring to the normal market versus the foreclosure market. Foreclosures are accounting for more than 50% of home sales in some California counties. The market dynamics and psychology for the two markets are very different.

According to Appleton-Young, California hit market bottom for real estate transactions in October of 2007. The number of transactions has been on the rise ever since, though median price is still settling.

Median home price erosion continues as a result continued foreclosures putting downward pressure on the mid to low end of the market and price decline on the high end due to financing difficulties associated with jumbo loans.

The Mortgage Bankers Association is reporting a decline in loan originations in September. This will show up in October and November sales results.

Home sales in California are improving faster than the nation.

California has seen a 24% improvement for first time homebuyers as a result of price declines.

That's right - here at The Harper Team - we eschew obfusication - AND - we give you the facts, so you can too.

From Business 2.0

Top Ten Foreclosure Markets - Does not include any California cities

Bubble Proof Markets - Includes two California cities.

Where Not to Buy – The Bottom 10 - Includes 6 California Cities

Top 10 Cities – Where to Buy Now - Includes 1 California city

Thank goodness it's a big state! 

Changing Their Tunes

The Mortgage Bankers Association on Tuesday pushed back its prediction for a turnaround in U.S. housing, saying housing would regain its footing near the end of the year instead of its December forecast of mid-year.

The National Association of Realtors (NAR) on Tuesday also lowered its forecasts for home sales and construction, although the group still predicts a housing recovery this year.

How do you like your Real E-steak?

Can you say sub-prime meltdown? 

Many lenders we know are advising past clients that used subprime loans in the past several years, to call and check on the feasability of refinancing - "the rules they are a changing." Some of the changes being made as a result of the subprime implosion will affect some home owners' ability to qualify for certain refinancing options. It's good advice to call now and check out where you stand before things change and you have fewer options.