Hello and happy summer 2010! As you may know, interest rates are now at the 4% range for well-qualified borrowers . The 15-year fixed mortgage rates are at ranges of 3.5%. Both fixed mortgage rates, which continue to decline, are at all time record low levels. This makes it a great time to purchase a home or income property. FHA mortgage rates remain at similar levels to conforming rates. FHA 30-year fixed loan rates are at the 4% range however, APR on an FHA loan at 4% is quite higher than that of a conforming mortgage at the same note rate. Why? MI at 2.25% of the amount financed and other FHA fees drive up closing costs. FHA is still a great way to go for those that done qualify for the conventional "A" type loans. This is a very seasoned product dating back decades and is still a great source for purchase money within its guidelines. Jumbo mortgage rates, which have declined significantly in recent weeks, are also at all time record lows. Recently we have seen them in the 5.125% range. On the Selling end of things, you have to be competitive with your marketing and price. There are buyers out there, but they are taking a good look at what is available before signing on the dotted line. Our team has decades of experience with the changing markets, and we can help you to put together the best plan of action to get your home sold. Inventory in the Santa Clarita Valley is currently low. Right now we are running at about a 3 month absorbtion rate for properties. Sellers with properties listed over $500,000 need to be patient, as the hottest market has been below that. The federal tax credits ended this spring which slowed the market in May and June. We saw the effects of that in the July reports. Summertime is typically slower anyway with travel and school schedules. Keep in mind that markets are like the weather, different in various areas. Santa Clarita for example, has submarkets within markets. Some neighborhoods have seen significant bank owned activity, and short sales, while others have not seen a huge presence of that. The amount of homes for sale has an impact as well. Competition will result in a price war. The good news is that myself, and other professional agents I speak with, are encouraged by the fact that we still have better consumer confidence than a year ago. Employment numbers could be better just about anywhere, but we are not as hard hit as many other areas. I have listed properties that sold within a day or two while others have taken a bit longer. I am avaialbe to answer any questions you have about your home, your neighborhood, or your plans for buying or selling. Try not to base your knowledge off of the nightly news, It's very broad and you may live in a market that is very different. Your Trusted Advisor in Real Estate is here. Paul\ 83% of closed sales for February 2010 were under $499,999 86% Of Closed sales for March 2010 were under $499,999 81% Of Closed sales for April 2010 were under $499,999 Only 19% of buyers looking at $500,000+++ Spring 2010 The most frequently asked question buyers have been asking me is in regards to "Short Sales" Our market has been affected to a great deal by these properties that are for sale for less than what is owed on them. A short sale is listed by an agent, for the seller, who is tryng to sell the property for a price the bank or lender involved, will accept. This is typically "less" than what the current owner owes on the property. Agents some times will list a "short sale" property for much less than market value, creating much interest and several offers. This DOES NOT mean that the bank or lender involved will accept a low offer. The thought process sometimes is to create a great amount of interest in the property, lots of offers, which many times are a considerable amount HIGHER than the list price. For example, a short sale property may be listed at $380,000 in a neighborhood where other properties are curently marketed at $425.000. These other properties may well be worth $425,000, but they want to create "interest" so they market it low. The Banks know what the true market value of the property is, they are not taking a blind eye to this. In reality banks will in most cases, counter these offers with a price they will actually accept. Buyers get confused and frustrated. A seasoned Real Estate Agent, will look at the comparible sales around the property and advise you if in fact it really is a good deal. Its a very confusing tactic that is used to move these short sale properties. Be aware of what the true value of the home is. Short sales can be a very long process as well, only resulting in a counter offer of what the BANK will sell it for. Bank owned properties have already been though all that red tape. The bank has determined what they want for it. Our inventory of these bank owned properties is also getting smaller, and drying up. Less inventory is good for property values. If you have any questions regarding a short sale property or bank owned home, please call us. We can sort though all this for you and present you with a clear picture of what is available within all the home inventory out there. ____________________________________________ *This information is for the consumer and not to be copied or used by other agents without my permission The Atkins Team 661-284-5440