I've heard from a few sources that the banks are holding many of their foreclosures in inventory until the market begins to creep back up. In addition, many banks are not even foreclosing on a lot of properties that are as many as 12 to 18 months delinquent.

This was presented to us at an investment meeting on Friday.

If that is the case, there will still be some buying opportunities for a while. The inventory right now however is scarce. Because it is the best buying opportunity in decades, everything that comes on the market is being snatched up quickly. Doesn't mean you shouldn't try.

By the way if your buying or selling in Phoenix, Austin or Philadelphia, I have a great agent for you. And of course the one in San Diego isn't too bad either!!

So the guy in Oregon who completely stripped his foreclosed home is looking at 10 years in prison. This guy’s life is only getting worse.

There are awesome alternatives to foreclosure. Almost nobody needs to go the foreclosure route - just get some help and ascertain ALL of the options.

And...God forbid you face foreclosure, leave the house in decent condition and don't take the cabinets, toilets, faucets, light fixtures or anything that belongs as part of the real property.

Read the full story here http://tinyurl.com/kuymke

If you or anyone you know gets into trouble, doing nothing and not communicating is still the worst thing you can do. There are options - call me and I will be happy to go over them

Wow! Interest rates are at the lowest in 3 months. Could there be a better time to buy - ever??

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.12 percent with an average 0.7 point for the week ending August 20, 2009, down from last week when it averaged 5.29 percent. Last year at this time, the 30-year FRM averaged 6.47 percent.

Even if you have to beg, borrow or steal (well maybe not steal) the FHA's 3.5% down payment, you should be out there trying to find your first home (if you don't own one that is)

If you're ready to look in San Diego, give me a call. I am very familiar with the inventory throughout the county and will help you find what you want!

Some people are really getting fed up with the treatment they are receiving from banks and mortgage companies. It is truly a joke and the financial institutions are setting a new standard for incompetence.

I am not sure what any of us can do about it, but some people are taking it to the media. We should be seeing more stories on these horrors.

In business anywhere have you ever had to leave 25 messages for someone without the courtesy of a return call?

One word - pathetic! Wake up mortgage people!

OK - so maybe the urgency is diminished a little - but with our Congress one never knows.

The push is on to extend the $8,000 tax credit for first time buyers beyond the November 30th deadline.

The influential chairman of the Senate banking committee, Connecticut Democrat Chris Dodd, has teamed up with Georgia Republican Senator Johnny Isakson to sponsor a bill that would extend the credit for another year and expand it to a $15,000 maximum.

In addition, there is a push to make it available to "all" home buyers who will be using the home as a personal residence.

So....if you don't get in on the $8,000, there still may be a bonus for you. But...will the prices be this low? Will the interest rates be this low? Maybe it will be an incredible year to buy in 2010 too!

If you are ready to buy in San Diego, please call me - We will find what you are looking for!

Urgent! Many buyers are now getting desperate because the federal $8,000 tax credit requires closing by November 30th.

Most of the first time buyers in San Diego are looking in the $100,000 to $300,000 range and are finding very few choices. Many of the short sale properties will now not be closed by November 30th so now they have to look at normal resales ( few and far between) , new construction ( most of that dried up a while ago ) and bank owned properties ( usually not in the best condition and tough to qualify for FHA and VA loans ).

My suggestion - start looking right now or forget about the $8,000.

I'd be glad to help, just call me - we'll go over everything available in the current market!

Is it really a buyer's market?

I am just speaking about San Diego today.

Every house or condo my clients have been putting offers in on is getting multiple offers. Usually not just 2 or 3, some get as many as 20 or 30.

The prices are nice and low but the properties available are mostly Bank owned or short sales.

And...There are not enough properties to meet the demand. But, no one wants to sell at the price level commanded by the foreclosures and short sales, and the appraisers won't appraise properties above what the "current" market is showing.

So, prices are poised to go up very quickly because of all the pent up demand and the many many people who are waiting to sell until the prices go back up.

The big variable is: will all of those who want to buy be able to get the loans?

They need to have 3.5% for the FHA loan and when the "normal" listings start showing up; there will be a huge run on these loans.

How many people have 20%? How many people can scrape together 3.5%?

You do the math.

I'd say buy now, and am trying to find properties with about 12 buyers, but properties are not too easy to find!!

But.... prices are only going up from here. Just how fast is the gamble!

It is nice to see the beginning of the turnaround. The best thing about it is that so many more people will be able to afford homes. The major question will be can they qualify for financing with the much more stringent mortgage terms.

Don't forget the FHA loan only requires 3.5% down so, although not 100% financing like we were used to, it still makes getting into a home very feasible for most.

The national housing affordability index is now 37 percent better than it was just a year ago. The typical family, with a monthly household income at the national median, can now devote just 16 percent of gross income to paying principal and interest on a median priced home financed with a 20 percent down payment.

That sort of affordability hasn't been seen for decades!

I'd say if you are currently renting, it is time to start looking for a place to buy. It appears that the market will rise for quite a while and most economists say values in most areas will not see these lows again.

Interest rates in the 5's - that should be generating lots of interest.

Give me a call if you have any questions. Or visit my website at www.alanschmitt.com

I have a few clients looking in the same category. The 1 bedroom 1 bath condo. I showed several over the last few days. There are 4 types out there: Bank owned, short sales, conventional sales and new construction/conversion.

There are very few available overall. The low end of the pricing in San Diego appears to be about $125,000 (not counting the stripped down REO disasters). For investment, after HOA and taxes it appears you can get a break even on cash flow. Still have to make any profits on the equity increases.

But...prices on these are down for the most part over 60% from their peaks.

I am showing 2 more to a client today which have excellent potential. Either of these will be a solid investment for years to come. The buyer is a college student whose parents are helping out so thet the student has a place to live. It will payoff in the long run.

All college studnt's parents should consider this option!

I was pleasantly surprised to find seveal one bedroom condos in metro San Diego for under $140,000. I remember not too long ago when these were getting multiple offers in the high $200's.

These are not short sales or bank owneds and a few are in mint condition or recently remodeled.

Investment anyone?

Short sales are becoming popular even in the mid to high end properties. Although the owner must show hardship, many people in the middle income brackests are running into trouble too.

The stigma is the major issue for many in the mid-income brackets. But selling the house short is a far better alternative to foreclosure where they come and post notices on the property.

Since the seller is not allowed to get any funds from the sale, the selling price can be set right at market value almost making the sale a certainty.

Anyway, if you know someone in a little trouble, tell them to talk to their Realtor and if you happen to be in San Diego County, just call me!

The federal government will give $8,000 to all first time buyers if the transaction is closed by November 30th.

(First time buyers are those who haven't owned a home in 3 years)

Interest rates are still at historic lows, prices are as low as 2003 and 2004.

Don't miss this opportunity. If you have any questions just call me.

Well it is time to start posting some real estate news each and every day (almost). The market is changing dramatically and this is my space for keeping my friends and clients informed.

I will provide some national as well as local info, mostly on real estate.

Here is a summary of some really important info compiled by Ken Harney.

When the Case-Shiller index reports that home prices have reversed course and are finally rising again, and Case-Shiller has been the gloomiest, scariest-headline-producing monitor of the real estate market for the past three years -- some say: We have truly turned the corner here. Not only are home sales up, new housing starts up, new permits up, but now the last of the doomsayers say that home prices are moving up. For the month of June, in fact, the Standard&Poor's Case-Shiller index found prices up in 14 of the 20 major markets it covers -- and up nationally by one half of one percent. That's the first monthly gain in the heavily publicized Case-Shiller index in three years!

Other indexes that get less attention on the evening news began trending more positive a few months earlier, such as the federal government's "FHFA" index.But the Case-Shiller news should send a loud message to consumers: We're past the low point of the cycle on prices: If you were waiting to buy at the bottom, well - we've passed that point.

So don't sit on the sidelines if you're serious about buying a house this year.

Case-Shiller found prices in Cleveland up 4 percent for the month, Dallas up by close to 2 percent, San Francisco, Washington DC and Chicago up by a percent or more.But the bottoming out on prices is hardly the only sign of the housing recovery underway.

New home building is beginning again even in the hardest-hit markets. In California, June building permits soared by 17 percent over May. In the high-cost San Francisco area they were up by 20 percent.In Florida, sales of existing homes jumped by 28 percent, according to the Florida Association of Realtors. Condo sales were up by an average 37 percent for the month. And despite the foreclosures still weighing down Florida transactions, average prices in June managed to rise by two and a half percent!!

The share of distressed homes as a percentage of total sales is also on the decline -- thirty one percent of sales in June versus 45 to 50 percent earlier this year, according to the National Association of Realtors.

Meanwhile, the mortgage market continues to help sellers and buyers on the affordability front: According to the Mortgage Bankers Association, new applications for loans to buy homes remained steady last week. Thirty year fixed interest rates averaged 5.4 percent, while fifteen year loans went for an average 4.8 percent.

So I start my new blogging commitment with some very important news. Things are looking up for housing even in San Diego.