Happy New Year 2009 and Menifee CA! I wanted to start off this blog report very positive since I have high hopes for this year. We have a lot of damage to start repairing in the Menifee Real Estate market. However, we still have a decently long road ahead of us.
In previous blog reports I have expressed a cautious but optimistic view of the Menifee real estate market. However, each time I had hope for a bottom, things got worse as loan programs got pulled, banks dropped home pricing, and people lost homes.
Well, to start 2009, all those things are still happening with Menifee real estate and foreclosures. I know, great optimism Stefan! HOWEVER, we are seeing a very busy market right now. There are plenty of short sales and foreclosures in Menifee right now but things are moving. Part of that has to do with supply.
Can you believe that the supply for foreclosures has actually dropped?! There was a moratorium by FannieMae and Freddie on releasing more foreclosures. Additionally, some banks have also been holding off. This has seriously shrunk the supply of homes on the market and created a pent up demand. Then interest rates went down severely in December and January. That has added to the buyer pool. Suddenly, I have more people looking then I can find nice enough homes for!
So, I think this bodes very well for Spring and Summer for Menifee real estate. Interest rates need to stay low and I hope the banks do a slower release of foreclosure properties. If they dump a ton at one time or interest rates spikes, we are going to take a step back. But interest rates should stay lower for the foreseeable future. We just have to hope that other ecomonic issues don't push them higher.
To sum it up, I have more buyers than I have houses available for them. I know there are plenty of homes on the Menifee real estate and foreclosure market but many aren't in the best shape. The nice homes go and go very fast! And that is good news in the short term for the market. I recently had a discussion with an economist that was doing an article for the Wall Street Journal and he is seeing a severe spike in real estate sold throughout South Riverside county. If things are busy now, Spring and Summer could be very busy and give us some much needed stability.
Sincerely,
Stefan West
Broker, West Realty
Menifee CA Real Estate
Menifee CA Real Estate Update January 2009
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Stefan West, Broker
Cynthia Nemelka, Realtor
Skylar Lewis, Realtor
I really like your blog.. I hope to see you back posting soon!!
ReplyDeleteAndre
http://www.southweber.net
Great blog, will be reading regularly.
ReplyDeleteenjoyed reading your blog!
ReplyDeletevery interesting site I will visit again!
ReplyDeleteForeclosure/Tax question:If my home is foreclosed, what will my tax liability be? My second was a HELOC. The oustanding balance on the HELOC came from 10% of the purchase price (second TD), and $30,000 for the backyard landscaping. The first TD is purchase money.
ReplyDeleteWould the tax liability be any different for the Second TD whether I went into Forelcosure or if Second TD holder agreed to forgive the debt?
To Anonymous Foreclosure - Normally, debts that are canceled by a lender are considered taxable income. But a change in the tax law in 2007, which should apply through 2012 makes mortgages on a primary residence exempt from the tax on canceled debts. Check out IRS Form 982.
ReplyDeletethe banks or brokers hold these foreclosed homes which gives qualified buyers looking for a good deal a false since that the market is changing and values are increasing. this is a price fixing scam that will be addressed with legal ramifications. in reality there are more foreclosed and NOD's than when this housing mess began. get real people don't get into bidding wars! be patient. the supply of homes is being witheld to deliberately drive up the value of homes. THIS IN MY OPINION IS ILLEGAL
ReplyDeletethe banks or brokers hold these foreclosed homes which gives qualified buyers looking for a good deal a false since that the market is changing and values are increasing. this is a price fixing scam that will be addressed with legal ramifications. in reality there are more foreclosed and NOD's than when this housing mess began. get real people don't get into bidding wars! be patient. the supply of homes is being witheld to deliberately drive up the value of homes. THIS IN MY OPINION IS ILLEGAL
ReplyDeletethe banks or brokers hold these foreclosed homes which gives qualified buyers looking for a good deal a false since that the market is changing and values are increasing. this is a price fixing scam that will be addressed with legal ramifications. in reality there are more foreclosed and NOD's than when this housing mess began. get real people don't get into bidding wars! be patient. the supply of homes is being witheld to deliberately drive up the value of homes. THIS IN MY OPINION IS ILLEGAL
ReplyDeleteMenifee just hit the headlines again on CNN! This city is the worse city to live in. Foreclosure and Tax Rate are at highest in the nation. We are a small city and we are on the map with Foreclosure. And they will keep going up. Along with that unemployment rate within the city.
ReplyDelete