Ventura County Real Estate Doing’s for Week Ending August 30, 2008

August 31st, 2008 Categories: Weekly Real Estate Activity In Ventura County

Summer is slipping by, the football season has just started and we are blessed to have so many outlets to view and do in this area that it makes living here a great pleasure.

But I suspect if one dislikes sports it could be just the opposite.

However there is a bright side even if you do not like sports. There are outlets available to drown out politicians. That is worth something.

There has been positive news regarding the economy and real estate in particular.

Most news bits are now stating that it appears that the worse is behind us. Shortly almost everyone will be shouting from the roof tops of how good real estate is and then the cycle of gloom and doom will reappear.

A never ending cycle isn’t it.

Banks however are in the crossed hairs of the Federal Reserve. The Federal Reserve has indicated some displeasure with banks regarding interest rates and it is now taking the unusual steps of trying to find out why interest rates are not lower.

With all of the cuts exercised by the Reserve mortgage rates have not come down and this action by the banks exacerbates the mortgage problem. One has the feeling that banks are going to brought to task and will have to answer some questions.

Unfortunately this means more government intervention. Banks have not been cooperating. I suspect that will change.

However people do become their own worse enemy.

Reported in the Los Angeles Times (Sunday, August 30,2008) “Sites hawking fake documents facilitate loan fraud”, by Kenneth Harney, outlined people utilizing Craiglist and a number of other internet outlets subscribing the use of their bank accounts to help borrowers exaggerate assets in their loan applications.

The article addressed this by noting that people with good credit and income rent their names and asset verifications for home purchase by unqualified buyers. They charge upward to $ 7,500 or more for their financial identification.

Ventura County:

County listing continue to decline, sales are increasing, days on the market is tending to lessen and the variance between list price and actual sales price is stabilizing but is still high.

What this means is that either asking price is still too high or sellers are opting to take less just to get out from underneath.

Refer to http://www.venturacountyretalk.com/2008/08/10/sizzlefizzlesizzle/ and you will see that the base is about set.

Looking at a year to year comparison (following chart) one can see the significant drop in prices that has occurred over the last 2+ years. This will abate shortly and as noted in the above reference it appears that prices will bounce once the year 2004 average price is achieved.

If you are potential seller I would suggest that (if you can) you WAIT. You will be glad that you did. If you can wait for a year or two you most certainly be glad that you had.