Scott L. Gibson's Real Story on Real Estate

The Real Story on Real Estate : Monday 1/30 Update

 

LATimes Article: Tax Relief on Mortgage Debt Forgiveness Ends in 2013

There are a lot of very good economic indicators further boosting the prospects for a stronger 2012 housing market. Sale of homes improved again in November from the previous month and from same month 2010 for the fifth month in a row. While prices may seem to still be weak, they will no doubt be firming in the near future as typical past cycles indicate over the last 40 years. Those buyers waiting for the lowest prices with the lowest interest rates will be very disappointed should they continue to stay on the sidelines. Interest rates and home prices will go up sometime as demand increases. How soon? Its hard to tell. Interest rates will move first, then look for home prices to move along the rate of inflation at the latest next year.

Happy 2012! It would seem that many economic indicators are finally moving in the right direction. On the residential real estate side, the activity has already started off strong on the westside of Los Angeles. areas like Brentwood, Pacific Palisades and Santa Monica have a ton of buyers looking at a very limited inventory. All we need are more homes to sell!

Happy 2012! It would seem that many economic indicators are finally moving in the right direction. On the residential real estate side, the activity has already started off strong on the westside of Los Angeles. areas like Brentwood, Pacific Palisades and Santa Monica have a ton of buyers looking at a very limited inventory. All we need are more homes to sell!

While existing homes sales showed further declines when compared to last years numbers, we will finally start to see year over year comparisons that are not colored by the tax credit induced sales of last year. We will start to see what our true market is and I believe it will start to show slow improvement. Is it any wonder that with things as uncertain as they are that people are holding back from buying a home or expanding their business? The earthquake in Japan, the credit crisis in Europe, and the debt ceiling debate in congress have all contributed to that fog of uncertainty. I do believe that things will start to improve by fall as that fog starts to clear. We could be in for a fantastic last quarter with the stock market going over 13,000, the economy showing signs of strenth, and employment rising. Look for a positive rise in consumer confidence to be your early indicator of this new direction.

While existing homes sales showed further declines when compared to last years numbers, we will finally start to see year over year comparisons that are not colored by the tax credit induced sales of last year. We will start to see what our true market is and I believe it will start to show slow improvement. Is it any wonder that with things as uncertain as they are that people are holding back from buying a home or expanding their business? The earthquake in Japan, the credit crisis in Europe, and the debt ceiling debate in congress have all contributed to that fog of uncertainty. I do believe that things will start to improve by fall as that fog starts to clear. We could be in for a fantastic last quarter with the stock market going over 13,000, the economy showing signs of strenth, and employment rising. Look for a positive rise in consumer confidence to be your early indicator of this new direction.

Foreclosure activity increases 7.6 percent in SLO County

 

Foreclosure activity increases 7.6 percent in SLO County

Julie Lynem  Thursday, Apr 28, 2011

Foreclosure activity continues to rise in San Luis Obispo County, a sign that distressed properties still play a role in the overall health of the local real estate market.

The number of properties with a foreclosure filing in the first quarter was 1,263, up nearly 7.6 percent from the same quarter a year ago, according to RealtyTrac, an online firm that publishes data on foreclosure activity nationwide.

That means there was one in every 93 housing units with a foreclosure filing, which includes default notices, scheduled auctions or bank repossessions.

It’s the highest quarterly total recorded since 2005, when RealtyTrac began tracking the area. The county had its highest yearly total in 2010, with 5,007 foreclosure filings, up from 4,900 in 2009.

In March, the county saw its second-highest monthly total — 517 — for properties with foreclosure filings. The highest monthly total so far was in March 2010, with 543.

The county’s activity level is bucking a trend seen in some California communities and other parts of the country, which have already experienced a peak and are now in decline, said Daren Blomquist, director of marketing and communications for RealtyTrac.

The San Luis Obispo-Paso Robles area was ranked in the top 25 of metropolitan areas with populations of 200,000 or more with respect to the number of foreclosure filings in the first quarter, according to RealtyTrac.

San Luis Obispo County is behind the trend in terms of the peak, Blomquist said.

“We believe we have seen the peak in some of the hardest-hit markets in California, but it will be around 2012 when markets like San Luis Obispo County see a peak in foreclosure activity,” he said. “And it could be as many as a few years after that where the numbers return to a normal healthy balanced market.”

While the county may not have reached its peak yet, Blomquist said it’s a positive sign that the real estate market here is headed toward recovery. Other areas of the country like Florida, which has been dealing with controversy surrounding improperly processed foreclosures, have seen a drop in activity. But that activity will likely increase later as more foreclosures make their way through the system, he said.

“The foreclosure volume is overwhelming the system, and we’re seeing backlogs,” Blomquist said. “You may see decreases in the short term, but there are just too many for the market to absorb. In the SLO market, you’ve been able to absorb the foreclosure inventory, and in many ways, for the market, it’s better to have that certainty that the foreclosures are there and being cleared than to have a shadow inventory that will hit in future months.”

 

 

Erny Pinckert - DRE#00778095

Prudential California Realty

Central Coast Region

( 805-712-8727 Cell

( 805-489-2229 x 119

ernypinckert@prucalcc.com

www.prudentialcalrealty.com

locally owned…globally connected

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Time to think about the good things that are happening

Will we ever go a week without some negitive doom and gloom. The US will NOT default on it's debt, but the S&P warning is a wake up call for the current administration. What the warning will do will raise interest rates. So if you are looking to buy a home, you should do it now. Between higher interest rates and the coming inflation, homes will become more expensive soon.

Wisconsin one of 41 states where public workers earn more - USATODAY.com

via usatoday.com

We had all better pay attention to this issue. Taking care of those that support our communities is very important, but there has to be a balance or the communities being served will no longer be able to exist and there won't be a need for any services or people to provide them.

Lending Revives Stalled Projects

Article Excerpt

Lending Revives Stalled Projects

BY ANTON TROIANOVSKI

An influx of fresh capital into U.S. commercial real estate is bringing some long-stalled development projects back to life and launching new construction of apartments, office buildings and shopping centers.

The moves show that the industry, in a deep slump just a year ago, has entered recovery mode—at least in the nation's largest and healthiest markets. Analysts say the improved economy is giving rise to pockets of demand for new commercial space, while low yields on other investments prompt investors to seek higher returns in real estate.

The nascent turnaround comes even though many U.S. banks still are slogging through ...

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via online.wsj.com