Lynda's Market Update for Spring 2010....
Your market area ended 2009 with an optimistic 123 West High and Southwood homes SOLD in one of the worst economic years ever. Our lowest Single Family Home sale was $490,000 (only one, thank goodness) and our highest was $1,299,000! Most of the sales settled in the $600,000-$700,000 range.

The first time buyers continue to fire the market with the great FHA government backed 3.5% down loan and the tax credit incentive. We actually saw an increase at the end of last year of 1%-3% in the lower price ranges in West High and Southwood single family homes.

The beginning of 2010 shows 36 West High and Southwood homes either in escrow or closed escrow. There are currently 19 West High and Southwood Homes on the market (out of 6000 homes). My last two listings sold in February and March in 4 Days!

Some challenges and obstacles to overcome in 2010 are appraisals, the expiration of the tax credit and the possible increase of interest rates.

Appraisals: Unless you can pay CASH, the Banks are very, very tight on their appraisals, and we are having some challenges getting the bank to agree with our sales prices. Fannie Mae and Freddie Mac lender guidelines state they can only use sales within ONE MILE of the property and only 3 months old! We are, when we can, removing appraisal contingencies from contracts, if the buyers agree we are within reason on our sales price.

Remember, who sets market value on a property: A willing Seller and a willing Buyer. Not a bank. HOWEVER, we have to live with the bank's reality of market value if they are lending us the money.

We are all guessing what the expiration of the tax credit and possible interest rate increases will do to the second half of 2010. Even if the tax credit is not extended and interest rates creep up, it is still a great time to buy. Prices are low, low, low. And they are not making any more West High and Southwood land to build new houses!

The real winners are the people who are fortunate enough to sell their existing homes and buy their dream homes. They win in the long run because the price on their dream home or retirement home is very low.

If you have a question that you would like me to address here, please give me a call or email me at: Fasthouses@aol.com or 310-560-3774.