Happy New Year Orange County and the World!

And what a crazy world it has been this 2010.  I am glad this year is coming to a close!  I’m sure I’m not the only one that says it feels like another year of just holding on!  However, I already know that 2011 is going to be a better year. There are signs of it everywhere. The stock market is doing better. Retail sales might have had their best Christmas sales season ever.  And real estate sales began to pick up steam toward the end of the year after having slowed down for the second half of 2010. There was such a big deal made about the $8,000 tax credit for purchasing a home before the spring deadline ended and it did get buyers to respond. However, the credit was 10% of the purchase price. To get $8,000 you had to buy a $800,000 home.  If you bought a $400,000 home your credit was only $4000.  If you skipped the tax credit in the spring and bought a home in the fall season and obtained a loan in October, you are going to potentially save thousands of dollars more than the tax credit due to hitting the lowest interest rates in 60 years.  Rates have gone up a little since October but have nudged down again just a little bit lately.  We still have historically low interest rates due to government intervention but they will not last forever.  Inflation will begin to take root in the system and rates will have to rise!  The window to catch the best affordability period in our lifetimes will be coming to a close. This is the case for first time buyers as well as move up buyers trying to find a better school for their kids or individuals dreaming about their buying their Dream Home.  The biggest fly in the ointment is are you able to qualify for a loan?  I have talked to numerous  people that would like to refinance and get a lower interest loan, but are not able to, due to their financial situation or due to the fact that they have no equity or negative equity in their current home.  Some individuals have enough assets to lease out their current home and take advantage of this unique market.  If you have any of these concerns please call me and I can make some recommendations  for various lenders and options that you may have.  Well, that’s it for now.  I think I will go grab my kids and get outside to enjoy some of this brisk California winter weather we are having. HAPPY NEW YEAR!