The Urban Land Institute’s 2010 “Housing In America: The Next Decade”

It is important for all of us to deal with reality in the midst of one of the biggest housing crisis in decades. You know I am looking for ways to make lemonade out of lemons in all aspects of my life.  So, I don’t know how I missed this very important report regarding the 2010 predictions outlined in Ronald Terwilliger’s research paper Housing in America: The Next Decade. The report was presented at the January 26, 2010 meeting of the Urban Land Institute Trustee meeting.  One of the key authors was Ronald Terwilliger – the chairperson of the Urban Land Institute.  There are many different aspects of the report you will want to read so take some time to do so.  Mr. Terwilliger writes about two major hurdles the 2010 housing market is experiencing in 2010.  Here is a brief review of both points. [Read more]

2010 East Bay Real Estate Update: Mortgage Interest Rates Rising In Q2, Q3, Q4!

The $64 Billion Dollar Question is, “When will the Federal Government stop purchasing Mortgage Backed Securities?”  You may ask why this is an important question.  Well,  the purchase of MBS by the Feds is the method in which they are guaranteeing mortgages so the lenders will continue to write them – assuring the lenders there is no risk to the home loan because it is risk-free.  From what I am noticing for the last twelve month trend of the Feds buying MBS, it may be just about over.  When it is over interest rates will begin rising in the very near future.

Did you know the Feds are scheduled to stop making MBS purchases by March 31, 2010? As you review the above chart you notice that the Feds are rationing out the remaining portion of the stimulus money as their purchase amounts are dwindling to what is expect to be a trickle within the next 60 days. For example, last week the Fed purchased $11 Billion in Mortgage Backed Securities, which leaves them with $66 Billion to spend out of their original $1.25 Trillion allotment. So about 95% of the total has already been spent and has purchased about three out of every four home mortgages the past twelve months. When such a large player in the market – the Feds, leaves, it is very likely that home prices may decline further because of it being more difficult to entice Buyers to borrow money because of the increased interest rates. [Read more]

2010 East Bay Real Estate Update: Smart Sellers Are On The Market NOW!

If you are a Buyer have you noticed that there are not many houses currently on the market in the East Bay?  Inventory is at one of it’s lowest levels in the last twelve months.  And, those houses that are on the market are not that spectacular.  What typically happens in the yearly real estate cycles is that January has one of the lowest months of inventory, AND there are many Buyers who want to buy homes.  In addition, there are several other factors that are highly motivating Buyers – buyer tax incentives until April 30^th, and the expectation of mortgage interest rates rising all the way through 2010.  The Buyers are absolutely correct regarding those buying factors!  SO…if I was a Seller,  knowing what I know about real estate trends and the 2010 market,  I would get my home ready for sale right NOW! The best prepared homes that are in turn key condition, and are priced at current market rates will get the highest prices that will be achieved in 2010! [Read more]