The issue of mortgage rates is critical as in the Simi Valley Moorpark area, a typical home is well above the FHA preferred rate limits and the increased conforming limits under Fannie and Freddy just require a large down payment.
The volume of sales has been declining, but declining from what?
>
Decade | Low | Average | High |
1970s | 1.6 mil | 3 mil | 3.9 mil |
1980s | 2.2 mil |
3.3 mil | 4 mil |
1990s | 3.1 mil | 3.9 mil | 4.9 mil |
in the united states. 40% of these homes were non-owner occupied compared to a typical year where only 12% of the volume would yield to non-owner purchases. The market was so hot the Fed jacked the interest rates to cool off the speculation. NAR is forecasting 4.5- 5 million units to be sold in 2008. Does this mean that the market will continue to decline? Different areas will have opposite reactions, for Simi Valley Moorpark, we will most likely see more of the same until the REO/short sale market begins to lose steam.
Leave a Reply