Improvements in Real Estate for 2013
Good news Sacramento! The real estate market is picking back up. The Sacramento Bee reported that not only are foreclosure rates down from last year at this time, the value of the area’s homes is rising as well. Thanks to revised federal programs, a low housing inventory, and cash buyers purchasing homes as investments all over the metro area the housing market in Sacramento has recovered quite a bit from just three years ago. Everyone loves good news but just like the doctor, there is almost always bad news when it comes to the housing industry.
Bank of America is being sued again, the Department of Justice is bringing a civil suit against them for defrauding investors. The securitization of loans made the investment seem more desirable when in actuality the underlying data and consequences of the economic bust have turned these securities into a loss of over $100 million. Bank of America has already paid over $42 billion in legal fees and this new suit is just another drop in the bucket, a big drop to be sure.
President Obama gave a speech in Phoenix today to outline his new housing plan and give Phoenix area residents a big verbal pat on the back. Obama’s new plan involves phasing out Fannie Mae and Freddie Mac, opening up refinancing programs to those whose loans aren’t backed by government sponsored enterprises such as Fannie or Freddie, and he has bundled immigration reform into his plan as well. Although the current programs such as HAMP are not performing nearly as well as had once been anticipated. Combined with the immigration reform and the lack of a proven track record for similar programs it is unlikely much will be accomplished in this area other than extension of current programs expiring this year.
Overall the housing market is in constant flux and we at Upside Down CA not only stay up to date with news from the nation and our market we also can provide you with an expert’s opinion on various aspects of real estate. If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 916.442.6400 or send me an email at Ted Greene.