The President's Speech Last Night - Highs and Lows

Well, everyone has an opinion about our newest President it seems. Everyone also seems to have an opinion about the current economic situation too. The facts regarding either can be fairly unclear considering most every "NEWS" channel or "NEWS" report is chuck full of opinions and comments. Sometimes I wonder how much more qualified the "Hosts" and "Reporters" are than anyone one of us to be on the television. Does anyone else feel a bit dismayed at what is being said and by whom?

Well, I watched most of the speech last night and can say that I AM PROUD of MY COUNTRY! Though I do not agree with everything the President said or wants to do and did not vote for him, I think he did very well.

What I liked from his speech is that he gave me a few bits of "Assurance" that the United States of America can and will come out of this and any other hard time even strong than before. He also said that he was going to hold folks accountable inside both government and the private sector. Lack of accountability or a relative few is what started our recent economic tumble in my opinion which has in many cases created hardships for those who have been responsible as well as accountable. I also liked that he referenced times in our past where government did positive things by spending money during hard times that did result in sustainable advantages for the country. Two examples I remember are the transcontinental railroad and the system of high schools around the country. Sometimes people like me who do not like even saying the words "Bigger Government" forget about some of the focused projects that led to very good things.

What I did not like was that I don't believe that his friends or foes in government will be held accountable for anything. The voters have not held them accountable as proven by the huge percentage of incumbents continuously being re-elected. So, it is difficult to believe that he will. As for the private sector, it seems they are very cozy with the elected and appointed officials tasked with holding them accountable. Tough to see how this type of situation could result in anything other than rampant self enrichment and the ethical low road we've seen to be the norm on Wall Street as well as in the Board Room. Call it the "Old Boys Network" or "Cronyism" or whatever you like, but it seems the result is CEO's and board members don't need to perform to be paid which makes losers out of shareholders and employees. Lastly, I do not like generalizations of people such as the one heard all the time, "All the people who bought homes they knew they couldn't afford". I feel that there are so many different personnal situations in the real world that exist.

All the rest, we will see how things go! Stay positive out there! It will get better for us all soon! Take that to the bank!

Dear Buyer - Why am I so excited you ask?

I'm pretty excited because inventory continues to get swallowed up (even though you may see a few stragglers out there) by investors and other buyers to the point it has driven inventory down farther than it has been in our area for 3 years! That demand has remained constant and even through all the drama of the economy and the government/ bank issues. The good inventory is being hit with multiple offers very quickly in many areas in Placer, Sac, El Dorado, Yolo and San Joaquin counties. I attend various investor groups throughout the month and many others feel we are at now or very near the bottom. Everyone has a different perspective as to why, but most feel we are there. I too feel we could very well be at the floor. I think we may see prices dip for a month here or there over the next 18 months and then recover back to that floor. Appreciation won't happen again for awhile unless inflation has an impact, but "value" is the important factor (a.k.a - How many loaves of bread will your house buy you when you sell it?). You probably won't get any extra "bread" for your property for some time.

On top of all that, rates are VERY low. The Fed will not let the rates on treasuries or on Fed Funds remain low once economic recovery begins because they will fear inflation. Do you disagree?

All that said, I think it is time to strike NOW if the deal is right. It is no longer a waiter's market. It is definitely a buyer's market in my mind. It could become a seller's market faster than anyone may think if I am reading the tea leaves correctly. For example - Banks are hold firm on prices and getting them. They are also tightening up their terms with requirements for lower and lower inspection periods with higher and higher Earnest Money requirements. They are also ‘trickling" new foreclosures into the market instead of "dumping" them and creating a glut of inventory. What is it called when the Seller's start setting those types of terms? Seller's market? If all property on the market was conventional versus bank owned or short sale, it would be a Seller's market today... Lastly, I have heard a few of our area builders have started to purchase land tracts. They generally do not do that unless they are thinking about building on them.

I am writing more offers than ever! It is exciting times right now!! Let's find that RIGHT DEAL and get you in while the getting is good!!

Your Real Estate Agent


Kenpatterson@kw.com

Are you an Investor and looking to aquire more Property?

Great News for Investors!!

Fannie Mae is changing their current limit of four financed properties per borrower when the mortgage being delivered to Fannie Mae is secured by an investment property or second home. They will allow “five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70–75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any investment property or second home loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower’s other mortgages. Second home and investment property loans to borrowers with five to ten financed properties will be accepted with purchase dates on or after March 1, 2009...

If you are thinking of investing, CALL KEN TODAY! 916-580-6031

Economic Bailout - Who Know What's in the Package?

Is it just me or have any of you noticed that most Senators and Congressmen/ Women simply state their "Party Line" when asked about this $827+ Billion spending package. And, have you listened when a reporter asks about particular line items or section?

I have heard several interviews on the radio last night and this morning that have me alarmed. I have heard things like "I don't believe that is what it says" and "If it says that, we will fix it" or "I will take a look when I get back to my office"... What??? Take a look? Those same elected leaders say, "I am going to vote for this because we MUST do something" or "This package is WAY TOO big that I cannot vote for it".

Again, is it just me or does it seem like these officials STILL do not have a clue as to what they are doing or the potential impact their action/ inaction is going to have? I submit they would not admit to what REAL impact their past actions/ in-actions have had on the current state of things. Am I the only person that feels as though you, Joe the Plumber and I are the ones having to take accountability for the actions of those in power? In some cases, I will take that accountability as a voting citizen. It would be nice to have someone that doesn't blame the other side or the past President. It would be nice when someone is caught dead to rights in the wrong to for once have them admit - YES, I made a mistake or a bunch of mistakes. Or better yet - "since no one will fire me, I am stepping down. It is the right thing to do."

I love my Country! We will get through this and come out better than ever. Please hold our leaders accountable for the actions and leadership, not for what they will "give" away. JFK said, "Ask not what your Country can do for you, but what YOU can do for your Country." I dearly hope that our leaders and citizens hear that call to action as we step through the current economic valley.

Just my perspective... Thanks for reading!

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Good News from the AP!!... AND it is about the Real Estate Market!!

This acticle has some "Good News"! Could it be that things may in fact be working themselves out as free markets always do? How can it be that there is good news about the economy before the "TRILLION Dollar Spending Act" is past. No, I don't think that is what it will really end up being named, but everyone reading knows what I am referring too, right?...

Funny, the reporter that wrote the article could not even get throught the entire 2 sentences of the 1st paragraph before making a comment "...analysts cautioned that the economy will keep showing fresh bruises in the coming months...". I, for one, am a little worn out with the drama of the "Bad News" always being reported. It is a litle like beating the dead horse. Additionally, I wonder about the advice those in power are getting about what is currently going on in the real world. When I hear things like, "We want to let people refinance at 4.0% along with 1st time buyers..." it really makes me concerned because a good number of folks I know cannot refi due to the current value of their home being less than the principle balance to be refi'd. Anyway... I could go on as I'm sure you can too.

My purpose in writing tonight is to simply say, "LOOK!! There IS some GOOD NEWS!" Thanks for reading!

Ken @ teampatterson.yourkwagent.com