Wednesday, April 10, 2013

The dark days are over!

Seen in my town sitting in front of a title company. A real Masi. Not a mehsi.

Sooooo. The under jumbo market is hot. Houses in my town in this rage are selling almost as quickly as in 2007. There was one place that had a coming soon sign. I was set to go to the open house, because it's painted 4 colors and looks a lot like it should be in Miami. All four colors are some sort of Easter egg color. Before I knew it - the house had gone.

The lady who used to live in my house, her house already went. And I guess since there are real comps - clusters of houses are starting to pop up. Three houses on the block in front of me just went on the market. All within the last week.

If you are in the jumbo market - I have sad news for you. There are only two companies willing to back jumbos. So that market is still dead. Almost nothing is going in the jumbo market. If anything does - it's usually only 10-20% above the non jumbo limit. A down payment (I assume) making it so they qualify for a non jumbo mortgage.

In other news - Trulia is reporting on zombie houses now. This used to be called "shadow inventory". Which is still savagely high. If I'm reading it correctly - 27% of foreclosures in Ca are zombie houses. Here.

I'd bet only half of those houses will ever make it back on the market. Elements are an evil mistress, and the longer those houses sit - the more they will cost to repair. Still... that is an enormous amount of inventory. Which is also probably why house prices are now artificially high right now.

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