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Interest Rates and Inflation?

by Ashlie DuCros

Good Afternoon Everyone,

The overall direction of rates for the past few weeks has been higher due to the fear of inflation, which is starting to spread through the financial markets and is reflected in our rates.  We know
there is inflation in food and energy, but is it anywhere else?  The answer would be no, right now.  While most companies are experiencing higher cost to manufacture or service, they do not have the ability to pass these costs onto the consumer at this point.  We will watch and see if they actually can, and we'll see if energy prices stay this high.

But for now we know there are GREAT deals to be had, banks are responding faster and faster to Short Sales and REO's and most buyers are not rate sensitive, rather they're price sensitive and they know that prices are great!

I'm always here to help you and your clients so let me know if there is anything I can do to help you!

Sincerely,

Brian Fraser
Loan Consultant
www.loanlinkpro.com
bfraser@theloanlink.com

If you'd like to see this week rates or for more information please call me at; 714-743-9778 or email; ashlie.ducros@mailpcr.com!


Orange County Homes Undervalued!

by Ashlie DuCros

O.C. homes seen undervalued, 1st time since ‘03

June 2nd, 2008, 12:01 pm · 70 Comments · posted by Jon Lansner/O.C. Register columnist

blog-undervalued-1q081.JPGEconomists at Global Insight and National City Bank say Orange County housing is now 5.2% undervalued — yes, undervalued. That’s the first time this math shows local homes as relative bargains to broad economics since the second quarter of 2003. It’s also the largest undervaluation since the final three months of 2002.

This O.C. undervaluation contrasts to 6.1% overvaluation found for the previous quarter; 22.8% overvaluation in 2007’s first quarter; and a peak overvaluation of 35% in 2006’s second quarter. (Chart shows O.C. valuation — overvalution is above the 0% line, undervaluation is below — since 1985.) Global Insight/National City economists track home valuation nationwide by mixing pricing data with interest rate, income and other demographics data.

Look at it this way: Global Insight/National City sees O.C. homes as the 123rd best bargain out of the 330 markets nationwide tracked. For the first quarter, the nation’s best housing bargains, by Global Insight/National City’s math, can be found in Houma, La., (33.7% undervalued) followed by Houston (33.1%) and Shreveport, La. (30.7%.) The most overvalued properties are in Atlantic City, N.J., (55.6% overvalued) followed by Bend, Ore., (49.5%) and Longview, Wash. (40.2%)

James Diffley of Global Insight says, “The large price adjustments we have seen are precisely what was required before we could begin to talk of recovery.” Adds collegaue Jeannine Cataldi: “The housing market will take some time to recover as consumers are constrained not only by tighter credit standards, but rising costs in other areas of the economy. There is also excess supply that needs to be absorbed, plus the rate of foreclosures entering the market needs to slow before housing can begin to pull out of its current downward trend.”

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Ashlie DuCros & Associates
Coldwell Banker Previews Global Luxury
21580 Yorba Linda Blvd.
Yorba Linda CA 92887
714-743-9778
Fax: 714-849-5489