West Sacramento Short Sale Information - Market Update

West Sacramento Short Sale Agent, Default Advocate, Distressed Property Expert and West Sacramento Short Sale Specialist Mike Rigley here bringing you the latest West Sacramento Short Sale Information. Thank you for joining us.

West Sacramento Short Sale Market Update. Why this Might Not be the End to the Housing Crisis Part I.

At the risk of being a real downers let’s talk today about the current West Sacramento Real Estate Market and what we should be on the lookout for. Please keep in mind that this is my opinion on what’s going to happen based on market data.

The local news is full happy news about double digit increases in the price of homes and extolling the end of the housing crunch. As a West Sacramento Real Estate Professional, no one wants to believe that more than me, but looking at the data I cannot help but believe this is a false market propped up by government intervention and investors looking for above average return on investment not the fundamentals we need to sustain recovery.

For any market to improve there has to be buyers wanting to buy and sellers wanting to sell. Interest rates, the economy (read jobs) and inventory will generally dictate a seller’s market or buyer’s market. So let’s look at the fundamentals here:

Interest Rates: Interest rates are at all-time lows. Is it because the economy is so great or is because of a little thing called QE I, II and III? Quantitative Easing is the sole reason rates are so low. If not for the intervention of the federal government rates would be considerably higher than they are now.

So what happens when the government decides to stop buying up mortgage backed securities and lending money at zero interest? You guessed it, rates will go back up. When rates go up fewer will qualify for home loans. The difference between 30 year fixed rate loan at 4% and 5% is about $60 per month per $100,000 borrowed principle and interest and can be the difference between the new borrower qualifying and not qualifying for the loan. Eventually rates will go up. It’s not if but when.

Next time we are going to look at the remaining fundamentals and lastly what it all means to you.

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information. Call me today and sleep better tonight; you’ll be glad you did.