REO Property in Murrieta Spikes, While Prices Plummet Receding to October 2005 Prices
Category: Real Estate Trends
Published: Thursday, October 23, 2008
Home prices in July plummeted 5.3% since last year, nationwide. This drastic fall in prices can be seen in the growing amount of REO properties in Murrieta, Temecula and throughout the Inland Empire. According to the government agency that tracks these trends the price of homes have receded to 2005 levels. Prices were down 0.6% since June reports the Federal Housing Finance Agency. Declining home values coupled with irresponsible lending standards are the driving forces behind rising mortgage defaults and foreclosures ultimately resulting in the credit crisis that plagues us all.
Sadly homes in the Inland Empire have fallen substantially faster, DataQuick Information Systems reported prices in Riverside County declined in August by 37 percent. In San Bernardino County they declined 40 percent. James Lockhart, The housing agency director has suggested that mortgage finance companies Fanny Mae and Freddie Mac loosen lending standards. Arguing that this would help buyers qualify for loans and stabilize the market, despite the fact that the government took over both of these companies last month.
During a testimony prepared for the senate, Lockhart said that he expected the strategy for lending to be safe and attentive to the mission, and modifying loans for troubled borrowers should be a high priority. Lockhart is arguing these positions because lenders have reverted to fundamental lending practices. It is almost impossible to purchase a home with less than a 750 credit score and at least 20% of the down payment. Many of the lenders have not only reverted to rigid lending practices they have also raised fees.
Mr. Lockhart concurred that the governments seizure of both Fannie Mae and Freddie Mac, was undoubtedly the only option, but he also points out that "Without new money, the only other option was to stop doing new business and shed assets in a weak market.
That would have been disastrous for the mortgage markets ad mortgage rates would have continued to move higher,"
Now while the market appears bleak, this is not the time to stick your head in a hole and hide. It is time to be proactive. If you are in the position to buy this is the perfect opportunity to strategically start making sound investments in the bountiful inventory of bank owned homes in Murrieta. Buyers are purchasing homes that are heavily upgraded for a fraction of the price. Investing in homes that are poised to make high returns.
Oak Tree Realty Group specializes in navigating through today's ever changing real estate market. Their team of agents specializes in Murrieta foreclosures. Contact Oak Tree Realty Group at (951)973-7177
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