Are home prices increasing?

I would have to agree that they are, for now that is.

This is due to a few factors that I would like to expand upon:

• When TARP was approved, there was a 90 day hold set so the Banks, that were accepting of the monies, could show due diligence in the working with the owners to Modify their loans and assist them with the keeping of the bank’s asset.  – This was across the Country – 50 states.
• When the 90 day hold was about to stop, as it did in the rest of the country, but here in California a second 90 day period was in-acted by the Powers that be in the State Government.  -Again, this was to take the “last stand” and to assist homeowners in their distressed state.
• With a lot of buyers and investors wanting to “call their shot” and find Great Real Estate Deals, the remaining REO/Foreclosure/Bank Owned inventory started to experience multiple offers at above the Bank’s List Prices. (which by the way were already below True Market Value)
• Short Sales became the dominant Real Estate Listing on the Market in California. (Short sales necessitate an offer to get the bank to approve or deny their approval and closure.  They are usually Further below Market Value than an Foreclosure or REO) – This is a double edged sword amongst agents and does nothing good for the local economy, the Agents marketing and advertising of a Short Sale, that is Far below True market value, gets the Listing Agent more leads and there the second side of the blade presents itself. (But as you know, –Terms, Price and other issues regarding Short Sales are always subject to Bank Approval)
• Multiple offers were and are a big part of this Current California Real Estate Market – pushing prices above baseline in a falling Real Estate Market.
• 20% down Conventional financing is able to inflate a market somewhat – because these are the loans that are the most attractive to the Banks/Private Sellers and their appraisers are a bit more “flexible” than the FHA/VA appraiser – it has shown that the Real Estate market in California is increasing.

Stand Fast – the inventory has not left the building.  In fact, it is building at an alarming rate.  We sell a couple of the Heavy Hitting Banks Foreclosures and REO assets for them in Santa Clarita Valley, San Fernando Valley, Antelope Valley and Ventura County.  The files are being reworked – but a majority are going to have the same result as was had with the first 90 day hold when TARP was approved. 

The “Result” being that they are Vacant and sitting awaiting Verification of Occupancy, a Broker Price Opinion, an Appraisal and to be placed onto the Market for Sale.

If you are one of those distraught Buyers out there and wanting to jump ship from the agent that has been working in showing properties, writing offers, and bringing you the bad news – Be Loyal! 

It is like this, you work for two weeks, two months or 10 months, your employer says that you are not getting a paycheck, in fact your employer is going to give your “well earned” paycheck to another person that just happened to be more clever, was at the right place at the right time, or ascribed to the “high pressure Real Estate” and “Closing” school. – OUCH is a subtle way of saying that Sucks!

Be Careful out there – and BE SAFE.