Recently I attended a presentation provided by a business group that I belong to Business Enriched Network where we had Carole Rodoni as the guest speaker. All I have to say is if you have never heard this woman speak you are truly missing out on a great presenter not only will you walk away with a ton of knowledge you will have a good time learning it. She cuts to the chase and is very direct as well as blunt and she does not hold back on those punches, but you will find yourself laughing from time to about something that is usually a pretty boring subject, but she also does an excellent job on breaking down a topic that is usually complicated down to more simpler terms.
The reality is whether you are in real estate or just shopping to possibly buy a home, real estate is a vital component of the U.S. economy and affects the lives of so many Americans. So in summary what I gathered from the presentation was that we are recovering (even if I have not felt it) although it will not be like the previous recoveries we have had in the past years it will be a rocky recovery with a few dips and peaks along the way. So its easy to say that there is still some pain to come for some businesses, and in my opinion especially the public sector that has yet to catch up with the private sector in budget cuts and in salaries and benefits due to the resistance of unions which will only make it more painful because the inevitable is going to happen regardless. To get an idea of what I am talking about check out what Maywood, Ca. has done. Although our recovery does hinge on the Euro to keep us from sliding back into a double dip recession and our stock market from taking a dump again. Which affects all of us even if you don’t invest in stocks your retirement could be even if you don’t have any thing invested for retirement you will still be affected one way or another the future of where you work or maybe wanting to work at could be. Believe it or not we are in a connected world.
So on to the new homes data which I found some really good charts to help in this. Since “New Home Sales” are really down to historical levels vs existing home sales, but just like Carole said, good because we need to get rid of all the other homes that are on the market. We over built so we still have to get rid of the homes may not be on the market now but are sure to come. Now for the developers and the banks that financed these projects this may not be the best of news but for the buyers you can get some pretty good deals on buying a home right now used or new. The reality is interest rates at the time of this posting are less than 5% on a 30 year fixed loan that is the best it has been in the last 40 plus years. People in general seem to have a short memory span there was a time getting a home loan was in the double digits. Buyers need to take in the value of time and money, those that are waiting for prices to drop or the perfect scenario or another 8k to buy a home can be wishing and a dreaming and a dreaming and a wishing. Reality is its a matter of time for the rates to adjust and then the same house will not cost you much more to buy. 
Take a look at this graph and if you need to just click it to get the full blown version. But its pretty apparent that the spike of activity first of all was attributed to the 8k that buyers were trying to cash in on that caused the spike of homes sales that led to all the “good” publicity but at the same time did not really let economic forces work since it was a manipulation of the market by govt. intervention and the cost of tax payers. But if you were smart enough to take advantage of free money to buy a home, good move. Now this graph is not just Santa Maria Homes for sale but on a national level so your market may be different because real estate really operates on a local level and from city to city things are different. But this is the still the national trend.
Now this new graph is basically the ratio of new home sales vs that of existing homes sales which is at an all time low. Usually the new homes sales run around 15% but not right now. Once the inventory of regular homes are used and the toxic assets that the banks have start to hit the market we may start to see a recovery of new home sales as well. As said before this will vary in your area and I believe alot of this will hinge on level of unemployment in your area as well. If you do happen to be in a situation where you are maybe in trouble now or in the future of keeping your home you may want to look in to doing a short sale and seeing if you qualify for a the new HAFA program which allows you to receive up to 3k for relocation assistance as well agreeing to not coming after you for the deficiency amount.
Over all the presentation was great and Carole gave me some hope that this economy will see brighter days in the not too far future. I seriously urge you to attend one of her presentations when given the chance you will walk away satisfied ask anyone that has heard her give a presentation.
If you have any questions about buying a Santa Maria home for sale in the Santa Maria Real Estate market or any properties on the Central Coastand need to get a loan in Santa Maria, CA or any where in the state of California not just on the Central Coast please contact me by sending me an email at: GenePerez@GMSLoans.net
I do also service all the nearby communities and other markets for real estate transactions such as the Santa Ynez real estate market, Nipomo Real estate market, Arroyo Grande real estate market, Grover Beach Real Estate Market, and all other surrounding areas regarding the homes on the Central Coast.
my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better
information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588
Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.
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