Conforming Change could save you $$$

The upcoming change in conforming loan limits from $417,000 to $729,750 could save you a lot of money. Not to mention save the housing market from further decline.

On a $700,000 loan, a rate reduction from 7% to 6% can save you well over $400 per month, or nearly $5,000 per year. If you make $200,000 per year income, that's like getting a 2.5% pay increase. Not bad.

Analyst are predicting we could see a 2%-3% immediate increase in home values in southern california.

We've been telling buyers and investors alike, that this has been the time to buy. Values are down and rates are incredible. Those who don't act quickly may just, 'miss the boat'.

Refinancing will funnel money back into the economy becuase many home owners will be saving a good portion of their income to spend elsewhere rather than on the mortgage. Sellers currently on the market to sell becuase they couldn't afford a new Jumbo loan will take their homes off the market reducing housing inventories.

There will be more move up buyers in the market becuase of the affordable financing on the larger homes.

With less inventory and more buyers, I think a 3% market gain is pretty conservative.

Check out the Straight Talk Radio show, we'll be covering some hot topics like these and some awesome investment opportunities.

CHUCK

Real Estate Market Turn Around?

There's obviously no way to really know when the market will make a complete recovery, but think about this little thought for a moment.

It's hard to sell a house right now. Especially for an owner seller (not a bank) as they have to price compete with all the bank owned properties in their neighborhood and have to significantly price reduce to have any hopes of getting it sold.

Recently, I check the Conejo Valley for homes over $600K. The number of listings dropped by about 35% between October and now. Sellers who don't HAVE to sell, are seeing the writing on the wall and taking their homes off the market to wait for happier times.

OK, so now what? Less homes on the market, less competition. A rising numbers of buyers will start to hit the market around tax return time. Rates are still amazingly low with a 30 year under 6% right now.

Couple this with First Time Buyer Down Payment Assistance Programs (see www.FTHBLA.com for more info) and more and more buyers will be in the market.

Add buyers, reduce inventory and what happens. The market sparks. Yes, more bank owned properties will be hitting the streets in the next six months, but then things should start getting back to normal and prices will at minimum stabilize.

If you are a buyer in this market, now is the time to reap the best deal, get the aggressive help from a seller.

Once buyers see the market turning around, so do sellers and they'll be less likely to wheel and deal.

Check out www.StraightTalkRE.com for the Real Estate Radio Talk Show that can be heard live streaming!!!

~ CHUCK