October 2010

Found 3 blog entries for October 2010.

EQUITY SALES RISE IN AUGUST.

Once again, you have to watch what you read in the papers.

The headline on Friday October 1 read, “Foreclosures Make Up 43% of California Home Sales in Quarter.”   That sounds bad doesn’t it?   But if you knew that foreclosure made up 60% of sales for nearly all of 2007 and most of 2008, started receding in 2009 and now is way less than 50%, you would know that equity sales are making a comeback.

In fact, wouldn’t the headline, “Equity Sales Now Account for More Than 55%,” have been nice?  We also find ourselves in the middle of a refinance boom, with loan rates hovering at historic lows at around 4 1/2%.  It is true that the housing market is going to take a long time to recover.   But a lot of that recovery number

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Orange County Homes Update

This was the headline of an Orange County Register article dated September 23: "CALIFORNIA HOME SALES REBOUND SLIGHTLY".   That's quite contrary to headlines on September 8, “Demand for O.C. Homes Plunges” or the September 15, “Rally Loses Steam.”

And therein lies this author’s complaint of newspapers in general -- they print doom and gloom until they are forced by reality not to.  Many may say, “but the market did decline.”  True.  But it didn’t die, and it was certainly more active in August and September than these articles indicated.  In fact, the September 23 article goes on to state, “California home shoppers seemingly quickly shook off the loss of federal tax breaks last month, with the state home buying pace rising

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TROUBLE SPOTS AND INTERESTING TIDBITS

Notices of Default grew slightly in July compared with June to 1,462.  However to keep things in perspec­tive, let’s remember that it is 50% lower than a year ago.  And that speaks as loudly for the positive side of housing, as the slow down in sales may spark negative rumor.

The adjustable rate percentage is appropriately low at 8.3% meaning nearly 93 of every 100 loans closed is a fixed rate mortgage. Why not? With rates at below historic rates, and still going down, we find our­selves in a refinance boom, consid­ering how many people have been left out of it due to equity issues.

Maybe one of the most telling sta­tistics for the month that validates the money is out there, is that even with FHA supposedly

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