We will see a “Thaw” soon?

Will the market here €œthaw€ soon?  Someone needs to tell those buyers out there that the bottom is here – we are so close if not there now.  Here in the Hollywood Rivera we are seeing the hit now – part of the problem for the beach city areas close to the beach is the lack of €œjumbo financing.€  In our more expensive neighborhoods if there is no jumbo financing there are no deals€¦.and this is what€™s happening right now. We are in a €œfreeze€ currently here – 42 homes for sale and only 5 in escrow is one of the worst ratios we€™ve seen in a long time.  Well, it€™s almost time for the €œthaw€ because jumbo money is going to start coming into play again.  Major banks are heading into the jumbo segment, originating big loans at affordable rates.  Bank of America, the country€™s largest mortgage lender is rolling out a large program to finance loans between $730,000 and$1.5 million with fixed 30-year rates starting in the 5% range.  These loans will be available through their retail network starting April 27th. (LA Times March 22, 2009)
     On another note – California€™s housing re-sales are booming (LA Times March 28th, 2009) According to the California Association of Realtors, sales in the last 6 months are up 89% over the same time period last year.  There is strong evidence that basic economics is addressing the housing meltdown in a direct manner which might set the stage for stability.  This is good news overall for that €œthaw€ we are waiting for here.  Note that this time last year we here in the Hollywood Riviera were still seeing generous market activity – especially when compared to what€™s happening now – which is nothing.
     It is important to be patient right now if you are a seller and think about how we are so very close to seeing the light at the end of the tunnel.  As a buyer, you should be excited for these new loans to come upon  us and an array of homes to choose from here in the lovely Hollywood Riviera.