USA - A Positive Outcome

The problem:
It feels very shaky in the good ole USA. The economists and elected officials are scratching their heads; running out of stimulus ideas, tax tricks, and money. It feels like the Fed, the Treasury, Congress, etc. are lost - or at least "at a loss" for how to revive the economy. Of course the housing market is still in the headlines and as a busy broker I can confirm that it feels like fewer and fewer people are qualifying as buyers; over 3 years of severe declines and this last month produced some dire statistics. Other markets are even more worrying - like the US Gov't Bond market, which continues to rally to new price highs and yield lows every day. Lots of cash on mega cap balance sheets, but bankruptcy for small and medium sized businesses; which drive growth. More people that I am meeting are genuinely worried about the very near future (economically). State and local government underfunded and overpriced pensions is the main topic of the private sector dismay. I think the new normal may be a harsh reality here. I am reading about a lot of people that are going through what has already happened to millions of others; elimination of entire markets and severely diluted opportunity.

The solution:
Put the brakes on the cascading decline in property prices which will revive entrepreneurs and small business markets everywhere. Millions of Americans that have jobs, decent income, but low credit scores should be allowed to refinance their homes even with lower credit scores. This will help stall and stop the foreclosure and short sale nightmare that is continuing to put downward pressure on prices. The Banking system needs this reprieve to mend personal credit and heal the Banks. Right now someone with good income but not great credit (millions) are being forced to strategically default on their homes because prices have dropped so far and banks refuse to allow them to refinance or borrow because of bogus credit scores. If these people were allowed to refinance at the new rates and prices, it would put a floor under prices and allow the market and economy to grow again (the banks are ending up with the depreciated asset/home anyway). Each new foreclosure and short sale puts tremendous downward pressure on prices and is creating a death spiral. This is not capitalism at work. This death spiral can be stopped if the government would encourage banks to change the way they are approaching this new reality. Right now the banks are applying an old technique to a dramatically different problem and environment. Just allowing people with incomes and low or no credit to refinance across the board would get the economy steaming in the right direction again. It is a much better solution than having the banks continue to take property from people with prospects.

Palm Springs Real Estate - July Home Sales Increase

The Associated Press reported July home sales surged more than 7 percent. This includes home resales posting the largest monthly increase in at least 10 years. Click Here to read the full article.

Call M1 Properties for Market or Property Information. We are your desert real estate experts.

Jeremy Metz
jmetzm1@gmail.com
www.m1properties.com
760-864-1410

Recovery Signs in Housing Market Stir Some Hope

An article David Streitfeld of the New York Times details the following:“The long slide in housing prices is continuing to brake, figures released Tuesday indicate. For the fourth consecutive month, there was modest improvement in May in housing prices, according to the Standard & Poor’s/Case-Shiller Home Price Index, a closely watched measure of the market.” Streitfeld points out “The report contained another, more startling piece of data: prices increased in May by a half-percentage point from April, the first positive monthly return for the index in three years.”

“It is very possible that years from now we will say that April 2009 was the trough in home prices,” S.& P.’s vice president for index services, Maureen Maitland, said.

“Recession is over, economy is recovering — let’s look forward and stop the backward-looking focus,” the Wells Fargo chief economist John E. Silvia wrote in a research note.

“For 16 months, beginning in October 2007 and ending in January 2009, the Case-Shiller index posted record annual declines. As recently as February, all of the 20 cities in the index showed a decline from the previous month,” Streitfeld states. “In May, only five of them did. The cities that are still dropping are Las Vegas and Phoenix, the two places where the bubble was the worst, and Miami, Seattle and Los Angeles. Prices improved in 13 cities.”

Although there are still skeptics out there, it is very possible the bottom is behind us and we can look to the future. From what we have seen first hand with the Palm Springs real estate market, today represents an opportunity. The prices have stabilized and the inventory is changing. The best properties are selling quickly. Deals are happening today that we will look back on and be amazed.

Call M1 Properties at 760-864-1410. We are local market experts and can help with your Palm Springs real estate needs. Full story click here.

Jeremy Metz
M1 Properties
Palm Springs Real Estate Sales

Common Palm Springs Real Estate Questions

What is a short sale?
A short sale is when the owner is attempting to sell the property for an amount lower than what they owe on their mortgage. Until the lien-holding bank approves the sale of the property at a certain price, listing prices of short sales are basically made up. Owners and their agents tend to use low prices to fish for offers, in order to use the offer as leverage on the bank. In a short sale, the bank has to approve the sales price and agree to take a loss on the sale. This is confusing to potential buyers, as they believe they can purchase a home for an unrealistic/unachievable price. Short sales are now more prevalent in the Palm Springs real estate market than ever. We recommend avoiding short sales and focusing on the purchase of bank-owned and non-short properties.

What ongoing fees are involved with owning real estate?
On top of the purchase amount, all real property is lawfully required to pay property taxes. Property tax amounts are dependent on geographical/municipal location, typically 1.125% to 1.5% in the Palm Springs real estate market. This percentage is out of the assessed value of the property, which is the sales price at the time of purchase. Some properties within communities will have monthly homeowner’s association (HOA) dues, which can range from $50-$900/month, depending on the community and amenities included. Mello Roos, or special property tax/assessment, in addition to the normal taxes, are charged to those within certain community facilities districts. Please contact us for additional information; we are your Palm Springs real estate local market experts.

Jeremy Metz
M1 Properties
Palm Springs Real Estate Sales
http://www.m1properties.com/
760-864-1410

Palm Springs Real Estate Sales Heat Up for the Summer

With days now reaching 114+ degrees, Palm Springs Real Estate has been just as hot. Usually known to be busier in the winter season and quieter during the hot summers, real estates sales have been cooking this summer.

Though the economy may have taken longer than anticipated to stabilize, the Palm Springs real estate market is now showing signs that the bottom may be here, or could even be behind us. The rate of foreclosures seems to be slowing, as many people have already experienced this phenomena. Most bank-owned properties have sold quickly, as the banks have priced properties accurately to sell; a key component that was missing in 2008. The smart buyers have been ready to purchase quickly, realizing that it is nearly impossible to pick the very bottom of the market and knowing that despite nervousness, this is an amazing time to buy.

California will always be California and there will always be a demand for real estate here. The time to invest in Palm Springs real estate is now, as the best deals are selling quickly. There will surely be some potential buyers that miss the boat by waiting too long.

The in-demand sales activity of real estate throughout the Coachella Valley is one fire that should continue to burn brightly. Buy now before the snowbirds get here. Call M1 Properties now at 760-864-1410 to discuss finding the right Palm Springs real estate deal for you. Check out our Featured Listings at http://www.m1properties.com/.

Jeremy Metz
M1 Properties
Palm Springs Real Estate Sales

The Desert, Homes, Credit, Government Assistance

It's hard to believe that our credit markets are stuck. So clogged in fact that the government is taking incredible steps to buy troubled assets so that banks can begin lending again. We have been selling the choice properties through the summer and this latest period of stress. We believe it's an amazing time to be a buyer. Soon enough the buyers will begin competing again (prices have corrected far enough) and the governments bail out plan will create a competitive lending environment again. We are experts in the local market and understand the current credit stress. Call us at 760-864-1410 so that we can help you find your dream home, or just answer any questions about real estate or our beautiful desert.

California Real Estate License

Going through the steps to obtain a Real Estate Salesperson License has proven to be quite the journey. I started by completing the necessary courses online; this was beneficial due to an already busy schedule. I was not exactly thrilled about having to take classes (and pay money for them), but I was extremely impressed with how much structured information the courses provided me. The classes were relatively simple to complete and I was very satisfied by the general and detailed knowledge I had gained by taking them.

Next on the agenda was the real estate exam in Los Angeles. The combination of working in real estate in Palm Springs for just under a year and completing the classes provided me with an irreplaceable amount of information. Knowing the test was just weeks away sure put the pressure on since there were still things I needed to learn. I found using a study guide and DVD to be a great source of information and somewhat entertaining. Night after night watching the DVD and cramming terms made me feel comfortable with most of the items I believed would be on the exam.

On test day, the drive to downtown LA went smooth since traffic was minimal, but parking was interesting due a film crew shooting just a block away from the test center. After obtaining a parking spot, I walked with my study guide to a local park where I was able to cram for another hour, while securing tickets to that night’s Lakers-Clippers game. I arrived early for the test and was surprised to see around 60 other people taking test at the same time. For some reason the exam started 15 minutes late and after waiting, I was very anxious to begin. Being a 150-question test, the first 120 questions seemed to fly by; but the last 30 questions seemed to be tricky. I’m not sure if the questions were increasing in difficulty or if I was just ready to be done. I felt good about my performance after leaving the test center but knew I’d have to wait a long week before hearing the results.

I successfully completed the exam, which is great in its own right, but the whole process was a great educational tool. I believe the knowledge gained about real estate would be useful to anyone interested in buying, selling or investing in real estate. Even if an individual has no desire to obtain a real estate license, the knowledge gained would prove to be useful. It is everyone’s dream to own a home and real estate sales/purchases are big decisions. Real estate is very dynamic and I would encourage anyone to take time to learn more about an industry that could provide new opportunities. Please contact us with questions or for information on the current real estate market in the Palm Springs area.

-Jeremy Metz, M1 Properties
Palm Springs Real Estate Home & Land Listings & Sales