Friday, July 2, 2010

Real Estate Summer Update

Falling Mortgage Rates and Fading Housing Demand… At the Same Time?
Mortgage rates look primed to go to new generational lows. But if the housing-market recovery is fading, will another drop in loan rates be enough to rekindle demand? Or are we simply running low on interested buyers -- or at least, potential buyers who’d be able to qualify for a loan in this new era of tighter credit? In a good sign for home loan rates, yields on

Homebuyer tax credit: Senate approves extension to finish deals

The Senate on Wednesday approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring. The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete

Window quickly closing on California home-buyer tax creditJust as Congress approved a three-month closing-date extension for first-time buyers applying for federal tax credits -- a program responsible for big spikes in home sales this spring -- California announced that its most popular tax credit program is rapidly reaching the application limit. As of June 29, the state already had received first-time buyer applications totaling more than the $100 million allotment

Market RecapThe chart below shows that cities east of highway 880 are still showing a higher demand than supply. Home prices have risen in these areas as much as 10% in 6 months. I expect the trend to continue throughout the remainder of the summer.

For Comparison: The West side of Highway 880 had more supply than demand in March, and April and May were also very close to having more supply than demand. It is too early to tell if the area is stabilizing or if prices will fall again.

Santa Clara County Market Snapshot

The table represents aggregated values based on MLS data for the specified date.
Enjoy the rest of your Fourth of July weekend and as always I welcome referrals from friends, co-workers or family members looking to buy a piece of property.  I am also happy to provide unbiased sound advice at any time. You can rely on my integrity and follow-through.

* Mortgage rates were collected from publicly available sources ( on the date stated. The accuracy of the information and the availability of these rates are not guaranteed by the publisher. Rates are provided for informational purposes only and are subject to change without notice. Actual market interest rates may vary.

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Nathan Nahouraii