I received some interesting information from Keller Williams this week that I thought was worth sharing regarding the Real Estate trends.
Loan Modification programs are reaching more and more troubled households- providing options beyond foreclosure or short sale. This is huge for the long term stabilization (potentially) of the housing market. And while all agree that we have a ways to go, in some markets (like Southern California), we are already seeing a positive several month trend in inventory reduction and price stabilization. This too has prompted a return of investor traffic and first time buyers who were waiting for signs of the bottom. Is it the bottom? Many home buyers are feeling confident we are at or near that point.
Home Sales up- Inventory Shrink. 5 month trend for home sales increase and 2 month trend for inventory reduction. While these are national numbers- the southern California (Coachella Valley) numbers have a longer track.
First time buyers dipped to only make up 29% of the total buyer market- suggesting to this report that we are seeing a "normalizing" of the market. Coachella Valley makeup based on traffic I am seeing at both open houses and coming to me as leads through my website suggest a healthy combination of 2nd home, move up and investor buyers. In some price segments (below 500k), the first time buyers in this area are struggling at winning bids on properties due to the cash buyer/investors. Banks taking "highest and best" often will take less CASH than dealing with a FHA qualified first time buyer. Easier, less hoops, a sure thing. Sound familiar?
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