Exuberance turns to concern

Refinance to get cash and make ends meet? Nothing to it. Refinance again in six months and get a better loan with a lower interest. Bad credit? Not a problem.

Tell New Century Financial Corp.: stock down 48% from less than a year ago.

Sub-prime was going hand-in-hand with exuberance. The idea that anything drastic could befall the monster real estate market of recent years was beyond peoples imagination. A sub-prime loan was only another means of joining the real estate boom many were gorging on—transferring equity, buying and flipping, and sub-prime loans. Anything that would produce a piece of the pie.

And slowly other economic factors—conflict around the world, rising oil prices, agitation by a negative press—and consumer confidence took a turn. A booming stock market, low unemployment and historically low mortgage rates meant little, it seemed.

Seemingly, a curtain fell and there appeared a plethora of homes as buyers withdrew. They had bought the propaganda in the air. A self fullfilling prophecy followed and exuberance was followed by caution. Foreclosures now filled the neighborhoods as REOs now became all-to common.

But resilience is beginning to show on the horizon. Hard to believe, but the forcast for the overall mortgage market is optomistic.

Some strong economy!

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA
310-640-7897
www.KissigRealEstate.com