Friday, July 24, 2009

National Real Estate News Equals Local Results

In case you missed it yesterday, the National Assocation of Realtors (NAR) released positive real estate market statistics that is widely credited with the rally on Wall Street that pushed the Dow to close over 9,000.

The NAR stated that "Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June". Taking this as an indication that the housing market has started to recover, the financial markets reacted accordingly.

Yes - that's exactly what has happened in our business. Sales are up over last year, more buyers are seriously "in" the market ... not just looking. We're noticing that in some price ranges in some areas, prices actually seem to be holding steady ... or even inching up a bit. This has generally been fueled by multiple offers, thereby pushing prices upward.

Further, the NAR states that "A June survey of NAR members shows 37 percent experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85 percent report a perceived reduction in appraisal quality."

Yes - that's exactly what we wrote about in our blog post here: Whose Real Estate Market is it Anyway

To read more: National Association of Realtors July 23 press release.

Wednesday, July 15, 2009

10210 McBroom Street, Shadow Hills 91040 - horse property for sale

Video of Fran and Rowena listing. This five bedroom residence is approximately 4,400 square feet and is located on over 40,000 square foot lot. Pool, spa and three additional guest quarters. This Shadow Hills horse property has much to offer!

For additional information, a color brochure or a confidential appointment to see this property, please call Fran and Rowena of Dilbeck Realtors at (818) 952-0077.

Wednesday, July 08, 2009

Whose Real Estate Market is it Anyway?

Observations from the trenches ...

If you are familiar - even vaguely familiar - with real estate terms, then you have heard the phrases "it's a buyer's market" and "it's a seller's market". Those phrases describe who has more "control" of the real estate market.

Well, today we say "it's a lender's market".

"What do you mean by that?" you ask. In our opinion, today's real estate market is "controlled" by the lenders. If the home buyer wants to get a loan, and if a home seller wants to sell their home to the buyer who has to get a loan, then both the home buyer and the home seller have to conform to the lender's requirements.

Home buyers must qualify for the loan with strict lender guidelines.

Home sellers know that their property must qualify for the loan via the appraisal, and stringent appraisal guidelines. These appraisal guidelines changed significantly this past May 1. Read more about it here: Home Valuation Code of Conduct, enhancing the independence of appraisers. The result? Strict appraisal guidelines.

So, in today's real estate market - today's "lender's market" - it's what the lenders want that determines the fate of the transaction.

At least, that's our opinion.