El Dorado County Housing Market Trend for June 2007

Summer has certainly arrived if the current temperatures are any indication.  Mortgage rates are still in a state of flux and the both buyers and sellers are watching closely since both are certainly affected by any changes to the prime rate.  Unfortunately, temperatures aren't the only thing rising as foreclosures are also up as we see the fall-out as the real low teaser rates increase.  These rates allowed borderline buyers to qualify, but now as these adjustable rates are rising, these same buyers are no longer able to make their monthly payments.  Although legislaters are considering stepping in to help, we need to consider that some real estate professionals may have also contributed by looking at their own needs to close an escrow rather than focusing on the client's needs and helping to educate them as to the risks involved with some of these loans before ever getting into contract.  Our business can be very successful in the long run due to repeat clients and referrals.  However, you only have repeat clients and referrals if the client remembers you as a professional who really helped them achieve their American Dream and not a nightmare.  Not only is location important in real estate, but so is timing and if the buyer really has to stretch too far to get into the house, then there may not be any buffer for unexpected financial issues and then the house is lost as well as the client.