December update

There are some notable highlights to come out of the real estate and finance markets over the past couple weeks that I wanted to keep you in touch with - as always, please do not hesitate to let me know if you would like additional information on any of the following:

1. Refinancing and purchase activity has spiked in the past week with interest rates on loans dropping dramatically. Interest rates on a 30-year fixed loan are hovering in the mid-5% range depending on credit and loan size. The 30-year fixed loans have been cheaper than 5 and 7-year adjustable loans! The conforming loan limits are going to be moving from $417K to $625K in January which will be a good move for Orange County purchasing.

2. At the same time, the US Treasury is working through the possibility of providing 4.5% loans to new borrowers on owner-occupied purchases. This plan is still in the works but would provide Fannie and Freddie-backed loans to new consumers to stimulate the national housing market.

3. The economists have all finally admitted that we have been in a recession for about one year, since December of 2007. I am sure that is of no surprise to anyone reading this email. This recession has already lasted longer than most and the economists are hoping for some of the government-sponsored programs to shift the economy out of this zone as quick as possible.

4. Real Estate news has taken a back seat to Wall Street over the past 6 weeks as the market volatility has continued. Most traders agree that while there are some very good buys right now, December is expected to drop even lower as hedge funds and mutual funds are forced to sell some of their holdings to cover their capital gains on prior transactions.

5. Real Estate and Wall Street pricing are seeing dramatic lows not seen in years. Many real estate transactions are trading at values not seen since 2002 and 2003. At the same time, the stock market is seeing some blue chip stocks trading at lows not seen since the mid-late 1990's.

The fact remains that this is not a market to speculate or flip properties but an amazing time to buy for long-term value investors. The key is finding the right product you believe in - whether it is real estate or stocks - and locking in low interest-rates and a low strike price.

That is the latest news from the street - I will keep you updated as I learn more and I hope that your holiday season is off to a fantastic start. As always, I appreciate you keeping me in mind for your real estate pursuits and for your referrals.

Have a great weekend.