Livermore market looks at world news for motivation

"DARLING, I DON'T KNOW WHY I GO TO EXTREMES...TOO HIGH OR TOO LOW, THERE AIN'T NO IN-BETWEENS..." Billy Joel The financial markets endured another week of extreme bipolar behavior, with enormous intra-day mood swings that normally wouldn't be seen over the course of several weeks. While Bonds and home loan rates wildly rocketed higher and plummeted lower on a daily basis throughout the week, fixed home loan rates ended up improved by about .25% for the week overall. And last week...the action started unusually early, stemming from some almost unprecedented weekend actions by the Fed.
Last Sunday night, the news broke that the Fed had not only decided to make a move to lower the Discount Rate by .25%, just two days ahead of when their normally scheduled announcement would arrive, but also that they had helped facilitate the bailout of investment giant Bear Stearns. The 85-year-old company had its stock purchased by JPM Chase at $2 per share, for $236 Million...yep, that's Million with an M. Bear Stearns was trading near $90 at the end of February, with a 52-week high near $160. Bear Stearns was the number one buyer of sub-prime home loans, with a huge appetite for this type of paper - and they bought sub-prime transactions with both fists, a strategy that certainly came back to haunt them.
Adding to the manic-depressive mix was a huge news day on Tuesday, starting with earnings and outlook from two other major financial players - Goldman Sachs and Lehman Brothers - who reported much more positive results than had been anticipated. Particularly on the heels of the Bear Stearns situation, this was very welcome news to a jittery Stock market. New construction numbers came out mixed, along with a hotter than expected read on wholesale inflation via the Producer Price Index...and as if it all weren't enough already, the Fed released their official decision to cut the Fed Funds Rate by .75%. Many people expected a deeper cut, but they likely kept the cut to only .75% because of continuing fears of inflation.
But wait...there's still more. On Wednesday, investment banker Morgan Stanley also came out with a great earnings report, which again was seen as good news by the Stock market, but pulled money out of Bonds. But then...along came big news from the Office of Federal Housing Enterprise Oversight (OFHEO), who announced that they lifted special capital restrictions that had been put in place for both Fannie Mae and Freddie Mac. This will allow these firms to pump $200 Billion into the mortgage market by way of buying Mortgage Bonds. The anticipated increase in demand was very good news for Bonds and home loan rates, which immediately improved on the news.

Home Sales in Livermore are on the rise again....

For the first time, well since I can remember, home sales in Livermore have been recorded as being on the rise. What does this mean? All indications in history would suggest that we have hit bottom, however, history can sometimes be a big tease and a poor indicator of the future, so lets keep a tight watch on the market and see what happens. Livermore real estate will make its come back!!

REO's are a hit in the Livermore Real Estate Market

Bank Owned Properties are smashing in sales in Livermore, the reason is simple.
1. Their priced right
2. The Bank makes a fast decision
3. The buyer gets an insanely great deal
4. The Bank writes off the loss

This coupled with the trend of summer sales and increase volume and lowering inventory of REO's should make our Livermore Real Estate Market get interesting very shortly.

Livermore Real Estate could be heating up

Well the Livermore real estate market has gained some momentum this week following a couple years of disappointment. My phone has been ringing more then in the last two years. Could this be the sign of good summer, could real estate finally have bottomed out? I have seen more action on listings then I can remember, I have had numerous first time home buyers call me to request information on how to get into their first house. Hold on to your hats because things are looking better.

Livermore Real Estate levels out

The good news for people wanting to sell their houses in Livermore.

1. Conforming rates are going to change, this will enable people to get much better loans up to about 635 thousand.
2. Banks are not giving away houses they own anymore.
3. We are running out of room to bottom out anymore.

The Bad news

1. Houses are sitting a long time, a 6 month average if you put your house on the market today at market price.
2. People still want deals.
3. Because of all the 100% programs, most people are very upside down in their houses.

What is going to happen in the future.

Things are probably going to stay about the same for quite some time, give it a year, new election, new attitude, people start spending, rates will drop even more and the effects of all previous rate drops will begin to materialize. Hang in there, as long as you dictate when you sell your property, you cant lose in real estate.

Bank owned properties are the hottest thing out there

Livermore real estate has a new client, investors for bank owned properties is the new ticket. Numerous agents have left the real estate battlefield in search of jobs that actually pay. Unfortunately, there are very few people buying houses, let alone getting approved for loans. This leaves veteren agents left for the most part trying to satisfy the new demand. Inventory again is the problem with these types of houses as it is the new thing coupled with very low-ball offers at that. Then the waiting game begins, and seems never to end. If the bank finally approves your offer, unless you have a whole lot of cash, the waiting game begins for loan approvals.

When will this end?

Well the housing market has taking its toll on many other jobs, therefore effecting the economy as well. Enough that last week Fed Chairman has hinted at drastic rate reductions. We might be outta the woods soon after the next election is my prediction. My advice, weather the storm as long as possible, thngs will change, they always do.

And the slump continues in the Livermore Real Estate Market

What is going on in this market? New Home builders have all but stopped building, banks own more of the houses for sale then owners, and getting a loan is next to impossible. The Real Estate market is still adjusting to years of escalating prices of homes, expect this to continue into 2008.

When will this stop? Time will tell, but this point in history is by far the best time in about 15 years to buy a house providing you have good credit, a down payment, and verifiable income. Sound tough or does it sound like what people use to have to do in order to buy a house? History does have a tendency to repeat itself.........