SDblog

This post is in response to a very good article explaining a lot about our current credit crises and the Fed's role (or lack of a definitive role) therein.  Please read the article at http://www.inman.com/inmanstories.aspx?ID=65180

I wrote the following back to the editor regarding this article:

Lou Barnes article could not have been more right on.  I have been in mortgages since 1984, having started with "hard money" before anyone else was doing it and before any institutions were doing high LTV loans and very few 2nds.  I have grown very weary of being in a business where the Fed, no matter WHO is chairman at the time, hasn't had a new idea in maybe 100 years (at least since Keynes walked the earth) and every few years comes in and ruins our business by reckless raising of short term interest rates with little regard for any global changes in the ecconomy at large.  Now the mess is so huge, greatly exacerbated by the 24-hour media, that congress is looking to pass legislation that will put the dagger in so far it may be fatal to our industry, and thus our economy.  Eliminating yield spread premiums (i.e. lender pays the broker) will only make the problem worse and more costly for the consumer.  It has ZERO to do with the problem we are facing and will do ZERO to remedy the situation at hand.  I am so greatly distressed at the damage congress will do to our industry (and thus the economy at large) that I am considering leaving the industry after more than 30 years and going to just go drive a tour bus at the zoo.  These knee-jerk reactions by an out-of-touch congress over the years have always presented more trials for the industry, but the changes now proposed will slow already lethargic homes sales to a snail's pace.  This will increase supply, and thus continue the downward spiral of home price-points.  This ain't gonna be pretty.

We are beginning to get some good news on homes sales again.  Sales in Southern California were up 4.4% from sales in September.  San Diego home sales were better than some other counties such as San Bernardino.  October is generally not the "hottest" month for homes sales, so this increase was meaningful.  To read the entire story click here http://www.inman.com/inmanstories.aspx?ID=65232

This is a great time to buy, people.  It is a great time to get a small residential income property.  For a couple of years, buying 3-4 units didn't make financial sense as the prices had exceeded the rents substantially.  Now with lower prices, they are beginning to pencil out again.  Rental units are a great investment for your retirement.  Give Coastline Team a call for more information: 888-791-8006.