Up to Date Real Estate News from the Experts in Urban Living, February 2012

Up to Date Real Estate News from the Experts in Urban Living February, 2012

The Experts make their 2012 Housing and Mortgage Predictions

As the new year begins, there are no shortage of stories telling us what to expect in 2012. Housing finished 2011 with momentum and mortgage rates closed at the lowest rates of all time. Some expect those trends to continue through the first quarter and beyond. Others expect a rapid reversal. Who’s right and who’s wrong? A quick look through the newspapers, websites and business television programs reveals “experts” with opposing, well-delivered arguments views. It’s tough to know who to believe. For example, here are some “on-the-record” predictions for 2012:

  • Home prices will rise in 2012 (says Freddie Mac)
  • Home prices will fall in 2012 (says CBS News)
  • Mortgage rates will rise in 2012 (says American Banker)
  • Mortgage rates will fall in 2012 (says the LA Times)

The issue for buyers, seller, and would-be refinancers in Orange County and nationwide is that it can be a challenge to separate a “prediction” from fact at times. When an argument is made on the pages of a respected newspaper or website, or is presented on CNBC or Bloomberg by a well-dressed, well-spoken industry insider, we’re inclined to believe what we read and hear. This is human nature.

The drop in REO is coming at a tough time for today’s Orange County home buyers. Distressed properties are in high demand ­ mostly because they sell at steep discounts. According to the National Association of REALTORS®, distressed homes accounted for 28 percent of all home sales in October. As fewer bank-owned homes become available, though, there will be fewer “deals” to be had. Especially as the broader housing market continues to signal its recovery.

However, we must force ourselves to remember that any analysis about the future — whether it’s housing-related, mortgage-related, or something else — are based on a combination of past events and personal opinion. Predictions are guesses about what might come next — nothing more.

For example, at the start of 2009, few people expected the 30-year fixed rate mortgage to stay below 6 percent, but it did. Then, at the start of 2010, few people expected the 30-year fixed rate mortgage to stay below 5 percent, but it did. All we can know for certain about today’s market is that both mortgage rates and home values are low, creating favorable home-buying conditions in and around Southern California and nationwide. At that start of last year, few people expected mortgage rates to even reach 4 percent. Today, rates “with points” price in the 3s. What 2012 has in store we just can’t know.

JUST SOLD – The Plaza, 8059 Scholarship, $850,000

8059 Scholarship, The Sousse Group, Luxury Irvine Condos

JUST SOLD 8059 Scholarship, 2 bedroom, 2.5 bath, 1,790 sq ft, $850,000

Views of twinkling city lights, mountains, Fashion Island, golf course and nature habitat preserve that bring the outside in from this ‘big sky’ wrap-a-round terrace. This 2 bedroom plus foyer/gallery, 2.5 bath corner unit on the 5th floor offers gorgeous travertine floors that guide you through the luxury of light cherry wood kitchen cabinetry, granite counter tops, floor to ceiling windows with upgraded window shades, custom paint, custom light fixtures, crown molding, three Plasma TV’s and fireplace with custom built-in entertainment in living room. Experience extraordinary amenities and recreational oasis on nearly one acre of land…The Plaza-Irvine.

Financial Update by Maurice

Interest rates are looking great this week. How about a 30 year fixed at 3.5%. Does that do anything for you??

The jobs report came out today with an increase to jobs in December of approximately 325,000 new jobs created (per ADP), but, the bond market doesn’t seem to care. Bond traders are still more worried about Europe and the strength of the financial institutions there.

If you have a moment, pop open the attached rate sheet. The jumbo mortgages are extremely low as we have a purchase special going on 30 year fixed jumbo rates. We are offering a .25% better than refinances on this program. Great stuff!!

Being a great baseball fan I can relate to this: “Progress always involves risks. You can’t steal second base and keep your foot on first”.

Based in Orange County, California, The Soussé Group is ranked number one in total sales in Irvine, California, 92612. Topped $120 million in sales in 2011, 2010, 2009, 2008, 2007 alone with 320 completed transactions and have successfully risen to the top 50 along the 25,000 agents in Orange County.
Kerry and Maurice Soussé
Realtor / Broker
The Soussé Group
HÔM Real Estate Group
1200 Newport Center Drive, Suite 100
Newport Beach, CA 92660
Direct Line: (714) 412-9014
Direct Line: (714) 412-8512
Direct Fax : (949) 640-7606
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© 2010 The Soussé Group.


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