Last week, I shared with you, the seller, that effective Nov. 1 the Federal Housing Finance Agency (FHFA) announced new guidelines which will permit a homeowner with a Fannie Mae or Freddie Mac mortgage to sell their home in a short sale even if they are current on their mortgage.
Also mentioned, Bank of America is still paying up to $30,000 in relocation assistance for homeowners who are considering a short sale of their homes.
This week, we are stepping ever-so-close to that fiscal cliff because our Washington leaders have yet to make any significant progress (unless you call finger pointing “progress”).
As we head into 2013, tax cuts for individuals at various tax breaks for business are due to expire, taxes pertaining to President Obama’s health care law will begin, spending cuts enacted by Congress as part of the debt ceiling deal in 2011 will go into effect, and long term jobless benefits will expire. If all these items occur it could take an estimated $600 billion out of the US economy in 2013, per the Congressional Budget Office (CBO), pushing us back into a recession.
With that said, this uncertainty here at home, along with the continued uncertainty surrounding the debt crisis in Europe, has benefited our bond market. Investors see the bond market as a safe haven for their money. Since home loan rates are tied to mortgage bonds, they have also benefited. This should continue provided inflation is kept in check.
What this means is that now is a great time to consider a home purchase or refinance as home rates remain near historic lows. All indications point toward our local housing market that has turned the corner in 2012 and sales have been strong and are on pace for a record year.
Local reports state Temecula has posted a medium price above $300K for eight consecutive months and that standard sales now make up over 50 percent of the sold market. That is a stark difference from just four short years ago when 92 percent of our sold market consisted of banked owner homes. Will this continue? Will the shortage of homes for sale continue? All I can say is “buckle up” as we continue to ride this jigsaw type of a recovery.
If you have questions regarding available inventory to purchase or other bank servicer incentives contact Mike Mason, Broker/Owner of MASON Real Estate DRE: 01483044, Board of Director of Southwest Riverside County Association of Realtors (SRCAR), and Short Sale & Foreclosure Resource certified by National Association of Realtors (NAR). Contact him at [email protected] or call (951) 296-8887.