Walker Beeken

I’ve linked below to a press release from HUD regarding FHA temporarily waiving the 90 day flip rule. The release further explains the details for the policy, which begins February 1, 2010. The guidelines will be very strict, but the hope is that it will open up a larger pool of homes available to buyers out there who are looking to purchase a home using FHA financing. This rule should have a big effect here in San Diego County. With inventory already being so low at the first time home buyer price price ranges, it’s even more difficult when you have to rule out more properties due to the fact that they have been purchased in the past 90 days. Many of these properties were foreclosures that were purchased for a discounted price that investors are trying to flip for a profit. The FHA was making borrowers wait 90 days before becoming eligble to purchase one of these properties, but this waiver will now make them availble as long as the property meets the strict guidelines. Check out the link to read more about it.

FHA waives 90 day flip rule to try and help speed up resale of foreclosures

This column from CNBC illustrates what many first time home buyers are facing in San Diego County as they try to purchase a home. They find themselves competing with investors who are buying with cash, and these cash offers are often trumping offers where a loan is involved, regardless of the purchase price offered.

I think it’s important for first time buyers to be patient with the process and realize that they may have to make offers on multiple properties before they get one accepted. The low inventory, the influx of investors with cash, and the heavy competiton from other first time home buyers are making it difficult to purchase a home. The incentives are there with the low interest rates, affordability, and the tax credit, but a good deal isn’t going to come easy.

CNBC Column Says Cash is King

Here’s an article from last week to catch you up on what the government is doing to try and help with short sales. I’m sure many of you have read or heard complaints about the length of the short sale process, and the uncertainties involved in the transactions. Hopefully things will gradually improve since they make up such a large portion of the inventory in certain areas and price points in San Diego County.

New Government Short Sale Guidelines

I’ve linked below to my monthly San Diego real estate market update for December 2009. There is some good information on how short sales and foreclosures are putting pressure on pricing while the increased sales from the tax credit are helping to stabilize it.

Walker Beeken December 2009 Real Estate Newsletter – SD Market Report