How's the Real Estate Market?

There is a lot going on in the market right now, and there definitely is some good news for distressed homeowners, investors and homebuyers.

Distressed Market. As we all are aware there have been many short sales and foreclosures in the last few years, and Carlsbad/North San Diego has not been immune (even though we have had less than other parts of the county). Will we see more of this? I think so, but not likely as much. There is some good news for distressed homeowners.

is really stepping up – even I am impressed (and I deal with short sales every day, so this is a compliment). It recently announced that it is working to speed up the short sale process for homeowners, buyers and agents. It’s Equator system, which was the first of it’s kind to automate the entire process online, has been a big help, but to top that off the lender is offering perks and is making it easier to switch buyers (when the first short sale buyer walks away and a new buyer is substituted), so that the process can pick up from where it left off and not have to start over again. The lender has also made other procedural changes to eliminate some of the red tape that agents must sift through to get these short sales approved.

Bank of America has also signed on to Keep Your Home California’s principal reduction program, and will be placing loan modifications in a priority position. The goal is to help those owners facing economic hardships to keep their homes.

and are also offering financial incentives to borrowers to complete short sales, citing the belief (it just took them longer to get there folks) that a short sale benefits everyone, including themselves. All in all this is positive news, so let’s hope it will make short sales smoother.

New laws help short sale sellers. Senate Bill 458 was just introduced in California, which prevents first and secondary lien holders from being allowed to pursue homeowners for deficiency amounts after short sales. This is great news for homeowners who need to short sell their properties. In the past the second and any subsequent lien holders could come after the borrower upon closing for the deficiency, so this is a big plus for homeowners.

Changes may be on the Horizon for borrowers. New legislation that is scheduled to take effect October 1 could make buying a home even more difficult. The confoming loan limit rate, which is $729,750, is set to reduce (to $625,500 in the higher end markets like San Diego) could mean buyers will be required to fork up larger down payments and be subjected to higher interest rates. There is a big movement to quash this bill, or at least postpone it, as it will have detrimental effects on the market, so the watch is on.

Prime time for investors. With all the news on rising rents, the great prices on distressed property, and the potential for price negotiations, this is a great time to invest in real estate. One can often follow the market trends by watching what the investors do, and right now they are out there buying in droves, mostly snatching up condos and townhomes.

As you can see there is a lot of news about the real estate market, and it is constantly developing and changing. To keep abreast of all the detailed changes please visit my website and blog at LaMarRealEstate.org.