October 29, 2010. Things have been looking good recently for the lower end housing market. There have been multiple offers. On the opposite end, there have been virtually no buyers for rural and higher end properties.
Details for the new Home Affordable Refinancing Program (HARP), are coming in. Its designed to help home-owners refinance into a newer, stable, and more affordable mortage. Either way, only about 2% of buyers might be eligible for the program.
October 22, 2011. Government proposes new housing stimulus, which would allow foreigners to jump to the front of the line for a visa after purchasing a new home. From the looks of things, this won't help the market at all.
A vast majority of current sales have been REO and short sales. With unemployment at 15% in the valley, higher end homes are NOT selling. If they are, its for a very cheap price.
Also, California has recently become the first state to adopt a cap & trade program to help with climate change and pollution issues. This will cause utilities to be higher, and will basically increase all living costs. If we continue to do things the way we have been, we won't be out of the housing mess untill 2020!
August 13, 2011. If something is not done quickly to stop the flow of defaults we will be digging out of this mess for years to come! Reward the people who can and will pay with substantially lower interest rates on existing loans.
The Federal Government owns or insures over 70% of all residential mortgages in the US. If they wish to stop strategic default by home owners and stabilize the housing market drastic measures must be taken. Take everybody who is current on their loans and have not missed a payment for the past 12 months. Offer them a new interest rate as follows: 1% on the first $100,000 you owe, 2% on the second $100,000 you owe and 3% thereafter.
Offer it one time. Take advantage or get out. This will allow owners to keep their homes and builders to begin to build again. When builders begin building, they will hire employees. New home buyers will need carpets, drapes, appliances etc. and this is how we get out of depressions!