Well, I wish I could say prices are going up, but they are not, they’re going down. There have been 141 price changes this month so far, including 24 today. Price reductions vary, but some have reductions of $225,000. A further example of price reductions is a home in Alta Sierra listed at $250,000. The shock is that the bank has a first of $400,000 and they have agreed to a short sale, taking the loss of $150,000!
The positive signs are that the interest rates are at an all time low. As a consequence, mortgage applications have increased as indicated by an article in Realtors Magazine
Here is an excerpt from their article today.
“The Mortgage Bankers Association weekly index of application volume rose to 1,324.8, an increase on a seasonally adjusted basis from 1,143.8 last week. On an unadjusted basis, the index rose 95.7 percent compared to the previous week and was up 52.4 percent compared with the same a week a year ago”
In more good news, the credit market seems to be loosing up. Companies are selling bonds at a pace not seen since last spring. It’s getting easier for companies to issue commercial paper, the short-term loans necessary for quick access to cash. For a full report, see the San Francisco Chronicle article.
San Francisco Chronicle
These are hopeful signs that we are approaching the light at the end of the tunnel, hopefully, that’s not a train!