Tuesday, June 10, 2008

Dear Valued Client:
 
Hi! Well, it is almost summer and everyone is wondering will the Real Estate market be
as hot as the weather?  All signs seem to indicate the hot summer season will be mostly at the beaches.  This was the slowest April in the last 20 years.
 
The median selling price of a home was $500,000 which was the same number as March 2004. April was however the busiest sales month since last August with 2,166 closed sales.  This is traditionally the beginning of the summer selling season, so hopefully sales will continue to sizzle. 
The Federal Reserve has signaled they will make no more rate reductions in the near future as it has fear of inflation.  It normally takes at least 6 months after a reduction for
the consumer to gain any benefit.  The economy grew slightly to avoid fears of a recession.  I think everyone is afraid of how much a gallon of gasoline will cost.
 
The market appears to be reaching a greater level of affordability which is key in its recovery.  We have a little ways to go as there is a few pieces to the puzzle not yet in place.  There were  2,598 notices of defaults filed and 898 homes foreclosed on, which is a record number for each category.  Notices of defaults may lead to future foreclosures and 3 out of every 10 homes sold were foreclosures.
 
This is  totally a buyer's market and as inventory builds up, prices will continue to fall.  I think if we have a little more patience it will be rewarded tenfold.  Real Estate has always been a great investment, if you have the time.  It is said " it is not timing in the market, but time in the market"!
If you are thinking of  selling or buying Real Estate or have any questions, please do not hesitate to call 714-719-0660.
 
 
Sincerely,
Bob Wein