Home buyers stirring in some markets

[Adsos Letter]

Source: Christian Science Monitor

Lathrop, Calif. - The housing market in California's Central Valley – and in other sharply deflated markets in parts of California, Nevada, Florida, and Arizona – is showing signs of new life. Prices have fallen so far that people of average salaries can afford to own homes again. Buyers are out in force.

Here in Lathrop, Calif., and in nearby Stockton – the nation's foreclosure capital – home prices could be bottoming out. However, real estate agents remain wary given the number of vacant homes and expectations of more to be listed early next year.

"The buyers are returning. And in such a strong way that, now, we are hearing in some cases there is multiple bidding, which hints that maybe pricing is reaching a bottom point," says Lawrence Yun, chief economist with the National Association of Realtors (NAR). "But inventory remains high. There is a lot of conflicting information."

For now, it seems to be stabilizing here. Since April, monthly sales activity has grown over the previous year in San Joaquin County, according to DataQuick. Sales in September and October were at levels not seen since 2005 – near the height of the bubble frenzy.






Read more: http://www.csmonitor.com/2008/1216/p01s03-usgn.html

[Wapsie B]

1. And in the minds of some it's proof that supply-side works.

:eyes:

[Adsos Letter]

2. yeah...the article mentions that many of the new buyers are investors...

gonna' pump that bubble up again...

[Faith No More]

3. Opportunistic vultures picking over the bones, taking advantage of somebody else's loss.

[bunnies]

7. or maybe some people can *finally* afford to buy a home.

Screw them right? Damn opportunistic vultures! They should just wait until the prices are out of reach again! What the hell are they thinking... wanting a house of their own. Assholes.

[Tempest]

9. Not according to the article

Investors are the group buying the houses.

I live in the Central Valley and my neighborhood has gone from two rental houses to seven in the last 3 months. The five new rentals are all recent foreclosure or distressed sale purchases.

[bunnies]

10. Well I'm not talking about some article...

I'm talking about real life. You know, where things actually matter. :eyes:

[Tempest]

13. I gave you an example of real life

But apparently you have a different reality.

[PSPS]

4. Another PR piece by the NAR

"The buyers are returning. And in such a strong way that, now, we are hearing in some cases there is multiple bidding, which hints that maybe pricing is reaching a bottom point," says Lawrence Yun, chief economist with the National Association of Realtors (NAR).

The NAR has been doing this all along. Their mantra has always been that "now is the best time to buy!!1!!1" Of course, they're the trade association of the realtors.

But the fact that it's somehow "news" that people will buy things (houses) when they're properly priced is the real hoot here. Of course they will. In fact, I haven't heard of anyone with good credit and buying within their means ever being turned down for a mortgage even in today's so-called "credit strapped society." The problem with the housing market is that prices are way too high -- still sometimes five times median income or more. A recently completed condo near me is selling for a whopping $450/SF which is ridiculous. A healthy market has the median price for a house around 2.5 times the median annual income. When that happens, houses move in any market.

[Robbien]

5. Exactly what I thought when reading the headline

No RE market is recovering right now because no one knows where the bottom is. Partly because no one is sure where the labor market is going.

[all.of.me]

6. I'm an agent in a stable market, and business picked up a lot in December.

These are not investors, these are people wanting a place to live. Investors DO come out at the end of the year if they need to drop some cash for tax purposes, but that's not what our office is seeing.

It is hard to get a mortgage, too, even with what seem to be good credentials. Programs in place one week are gone the next and criteria keeps getting tighter and tighter. I am finally closing a deal that has been stalled three times due to the financing atmosphere flopping around, although the buyers were approved. Things have just changed since then.

It IS a good time to buy with interest rates being what they are and maybe going down farther, and a huge inventory with sellers eager to get off their properties, especially with winter closing in. If you can secure a mortgage, now's the time to buy, because in maybe 5 years, you'll regret not doing so. (I mean 'you' in general, not 'you' you.)

[PSPS]

11. HA!

No, now is not a good time to buy.

I know you're trying to drum up business, but the days of getting those "funny" appraisals and liar's loans are over. Or they should be. The reason your "deal" got "stalled" was likely because either the borrower couldn't meet the 37% guideline with proven income or the house is overpriced and won't appraise for the asked amount.

If someone has good credit and meets the traditional FHA guidelines for debt to income ratio plus can prove income, they will have no trouble at all getting a traditional mortgage on a house that is priced properly. These "programs in place one week are gone the next" that you're talking about are probably loans your buyer should stay away from anyway.

I know you're working for the seller, but you can have a conscience too.

For a laugh, look at the photos of the unflushed toilet in this listing:
http://listings.listhub.net/pages/MRMLSCA/K08153828/?channel=zillow

I guess just about anyone can become a realtor, even with a single-digit IQ.

[all.of.me]

12. I'm not going to defend myself against this crap.

I was stating facts for my area. I know my market. I know what's happening elsewhere. And I have more integrity than most realtors anywhere, probably why I don't have a huge investment portfolio.

[Tempest]

14. You haven't said what area you're in

So you leave no way for anyone to research the market in that area to find out if you are right or just voicing an optimistic opinion.

From my own research, the only areas that are selling are only selling because they are distressed or foreclosure sales.

[all.of.me]

15. I'm in what is considered an 'affordable resort town.'

Like an inexpensive Vail in northern NM. A lot of second homes here owned by people not affected by the mortgage mess. It's not an opinion, it's what is happening in our market.

[specimenfred1984]

17. "It IS a good time to buy", says the huckster

unless the property ends up being worth 1/2 of what is is now in another year or so.

Question: do you have a conscience or are you a diagnosed sociopath?

[all.of.me]

19. Like I said....

... I am in a resort town - a stable market where prices are not dropping by 50%, foreclosures are at a minimum, and many homes are vacation homes. Did you read what I wrote? :eyes:

[snooper2]

8. "which hints that maybe pricing is reaching a bottom point"

Or, maybe the actual non-inflated value of the property

[specimenfred1984]

16. I suggest you dive in

and when you lose your ass just blame someone else!

[TwixVoy]

18. And by "afford to buy homes again"

they mean get a 30 year LOAN.