What’s Next Doc?
February 1st, 2009 Categories: Weekly Real Estate Activity In Ventura County
There appears to be a lot of frantic talk and juggling in Washington at the expense of Mr. and Mrs. America. (I will not say anything about the favoritism bestowed on politicians when it comes time to pay their taxes with interest and penalties. The IRS treat politicians differently).
Young families will be taking the brunt of all this as will their children in the future. Many people wanted change. Well we are getting what we asked for and it may not be very pleasant.
With government now being the owner of most financial institutions and real estate in the United States the question becomes “What’s Next Doc?” Socialism? That appears to be the way things are going. In Europe they want to get away from socialism; we appear to be wanting socialism.
With interest rates hovering around 4.5% (they should be lower; why they are not shows that interest rates are managed and it is not the market that sets rates) real estate sales have been accelerating as well as morgage re-financing. Attempts to help those who bought over their heads with unreasonable type mortgages are not able to stay out of foreclosure. It has been reported that close to 60% of those helped are now back in foreclosure. So that concept didn’t help except to create a great deal of havoc and miss guided hope.
Side bar: Those who are re-financing. The IRS will be auditing re-financed mortgages. They want to know how the re-finance monies were spent. If spent on paying off credit cards, auto debt, etc., they will be askings for a revised income tax return. Credit card and auto debt interest are not tax deductions.
Washington and local politicians will continue with their double talk over the next several months (it appears to be worse now than ever) and will say anything to anyone depending on the time of day and the way the moon is set in the sky.
And of course there is the bail out money. Everyone now is in line. States, Cities, Counties, businesses, unions, banks and other financial institutions……you name it they are in line looking for some easy money.
One of these fine days common sense may come into play but that may be just a dream. Reality will set in when these monies have to be repaid (or do they?).
Ventura County:
Following the rest of the Country, Ventura County showed a significant increase in single family home sales. Interest rates were quite favorable (about 4.5%) and home prices (mainly foreclosures) have been discounted significantly creating opportunities for new home owners and investors.
As noted in the chart below home sales increased approximately 70% in January, 2009 over the same month as 2008 (505 sold in January 2009 as compared to 307 in January of 2008).
Listings continue to decrease; prices continue to fall; sales, as mentioned, have increased (124 in the last week of January); days on the market for listed homes has decreased; and property discounts continues to hover around 5% (difference between list price and average sales price).
The squeeze is on. Buyers waiting to buy at lower prices may have missed the train because eventually the spring in the box is going to let go and prices will accelerate big time.
Reference the following articles to see the picture for Ventura Count beginning in 2009 Year 2009 Fearless Forecast For Ventura County Real Estate/ and Out With The Old In With the New/
Your comments are welcomed.
