Our Favorite Financial/Interest Rates Guy-Lou Barnes-Some quotes

From the August 7, 2009 column. You can always read Lou’s column on Fridays at www.Inman.com or just listen in on the Show on Sunday mornings as I usually read snippets of some of his sage advice. Here’s a few:

“NAR’s (National Asssoc.ofRealtors)pending home sales surged 3.6% in June, but were not confirmed by other data. Purchase-loan applications are stil falt. Distres is still growign in the pipeline: new Fannie/Freddie (Fannie Mae/Freddie Mac) data have 90-day+ delinquencies up from 1.12% last May to 3.27% one year later. Since last May, 420,000 foreclosure starts; at 3.27% currently 90+…that’s another one MILLION loans going into the tank, Fannie/Freddie alone.”

“I share the world’s hopes for recovery of US demand. However, the only ideas of our that have orked are the $8,000 first-time-home credit, cash for SUVs and F-150’s You Bough By Mistake, and Fed life support by imaginary money. I would feel better if the authorities here understood that the panic-stop to the credit binge still has us going through the windshield. we can’t get this wrong; We are the World’s Airbag! (My emphsis)

Latest Sales Numbers for July Median down ONLY 10%!

The big news is we hit 500 Sales for the first time since October! Yeah! But we ARE in PRIME TIME so we’d better beat that wild and crazy October sales number.

  • The other BIG news is the median, usually dropping some 25%+ per month is down ONLY 10% over last years median!
  • Sales are up a modest 6.5% mainly due to the LACK of inventory. Last year at this time we had 2600 listings but are limping along in ’09 at just 1574 total homes on the market in Sonoma County!
  • Here’s some other categories and numbers:
  • REO’s or Real Estate Owned-those ‘post’ foreclosure–sales are down 32% over last year!
  • We only have 131 “Active” REO’s! REO’s make up ONLY 8% of the active market but 29% of ALLSALES! Wow!
  • Short-Sales: those with loan amounts HIGHER than the list price-sales have fallen 14% over last month at 86 but are up a whopping 42% over last year! However, the average time on the market is still a huge 176 Days! Of our 1058 in escrow or Continue to Show homes, 645 are Short-Sales! We ONLY have 67 pending which is a firmer transaction!
  • Oddly, the number of VACANT omes is now at 535 of All Active listings and 303 of ALL the 500 Sales or 60%! The foreclosure sales toal 46% (REO’s and Short-Sales”) but 14% more ARE Vacant! Interesting?!!

Listen to Mike and Allison on "The Real Estate Hour", Sundays, 9 to 10am PST, KSRO, 1350AM or 103.5 FM and www.KSRO.com