Halloween Weekend Update

Happy Halloween weekend,

This has been an active week in the real estate and finance markets. Here is the latest information for your review:

1. The Fed Has Reduced Interest Rates - again. The Fed reduced the Fed funds rate, which impacts variable lending rates, to 1%. This is the lowest since 2001 and will reduce payments on home equity lines and credit cards. The Fed is doing whatever they can to encourage economic growth by enticing businesses to start to borrow money to expand and encouraging banks to lend to them more freely.

2. September Sales Volumes Way Up. Orange County September real estate sales increased about 62% versus sales data from one year ago. Sales volume is still down versus historic numbers. Sales volume has increased by double digits for 3 straight months - July-September. This has not impacted sales prices, which remain lower.

3. Short Sales and REO's ARE closing. A large part of the transactions in the marketplace right now are bank-owned homes(REO's) and short-sales. Buyers are taking advantage of aggressive bank pricing and the bank's are starting to work with sellers who need to complete short-sales to get out of their homes. Not all short-sales are going through - we can help you qualify the right ones to pursue. Banks are getting multiple offers on homes/condos when they are priced right.

4. No One Can Predict The Bottom - on any street. Economists on Wall Street and Analysts on Main Street all agree that no one can predict the bottom of the real estate and stock markets. What they DO all agree on is that in both markets, there remains clear opportunities for long-term buyers. Buyers are purchasing homes/condos in many markets for 50-70 cents on the dollar versus where prices were a couple years ago. This not a consistent number however - some markets have more inventory and are getting hit harder than others.

5. Our MLS system provides access to ALL properties in 4 surrounding counties. Our MLS is now consolidated to include Orange, San Diego, Riverside and LA County - we can access information on any short-sale, foreclosure or traditional sale in those areas.

I hope everyone had a great Halloween weekend!