This is very encouraging new, but the lenders need to stop being overly conservative on their new loans by requiring at least one comparable property to have sold for more than the subject property. Buyers are willing to buy and their is competition for homes but if the property won't appraise all bets are off. I think it is great that lenders have learned from previous mistakes and that there needed to be tighter lending requirements but they have swung to the far other side. Don't they realize they are defeating themselves, forcing the banks themselves to list the bank owned properties for lower than what buyers are willing to pay. It seems to me they are cutting off their nose to spite their face. They need to use some common sense when making lending requirements.
Daily Real Estate News | May 29, 2009
As the biggest residential property market in the United States, California often serves as a bellwether for the nation's economic health. And new research from that state suggests that housing prices nationally could start to rebound relatively soon.
The latest data, including two consecutive monthly gains in the median price of existing homes, has some industry officials hopeful that the state housing market has finally reached a bottom and is poised to recover from a prolonged period of declining residential values.
In April, California's single-family median home price rose 1.4 percent to $256,700. While that is still off by more than 36 percent from April 2008, the 540,360 homes sales on a seasonally adjusted annual basis reflect an increase of almost 50 percent over the same period, according to the state’s REALTORS® group.
Source: Wall Street Journal, Jim Carlton (05/29/09)
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