At least for a while. The only thing that will break up this “log jam” is to get more inventory on the market for sale.
When we talk about the real estate market, it is not without a bit of dismay. Not because there are too many homes on the market for sale and the sellers are suffering… It’s quite the opposite!
Today, the market has changed where the Santa Clarita real estate sellers are holding all of the cards. The only “factor” that is not giving the sellers the “farm” are the appraisers, at least not all at once.
The future of Short Sales, foreclosures, and distressed properties is uncertain. However, I have heard, as you probably have, this market is going to be with us for the next 2-3 years.
There are those “fancy schmancy – negative Amortization” loans that are coming due with a balloon payment required. As a reminder, the “negative am” loan was structured like this. The buyer would have been offered a regular old market type interest rate, let’s say 6.0%. The bank would waive 1/2 of that interest rate for a period of time. So the buyer would end up paying 3.0%. That “waiving” would not go away, it was stored and required a mandatory re-finance when the “term” was completed. Typically 3, 5, and 7 years. In an increasing market, that Borrower would have been able to re-finance that balloon payment into his/her mortgage. Today, that is not possible.
With all of the activity today in the “Buyers arena” within Real Estate across these United States, it is hard to imagine that recovery has not arrived.
Watching the Local SCV inventory can tell you a lot about a specific real estate market. Typically when you have supply and demand numbers that are low and high – respectively, you are in a “Sellers Market”. As of this post, on Fathers Day, that is where we find ourselves in the Southern California Cities within the Santa Clarita Valley.