This email message was forwarded to me from Dan Baker of Countrywide (yes Countrywide was sold to BofA, but the complete transition hasn’t happened yet). It comes from Tony Machado of RC Appraisal.

As many of you know I have been saying for quite a while now the housing market is showing some momentum in the right direction and the purchase market without a doubt is picking up.  What I am tired of is listening to the Media who are constantly putting out a negative message.

In my business alone more than 50% the assignments in Q-1-2008 have been purchase transactions.  To give you a comparison, in Q-4-2007 purchase assignments were less than 10% of my business.

Just this morning I completed a market analysis in Antioch showing that in 2007 based on the subject CMA (comparative market analysis) there were a total of 3 sales in all of 2007.  In Q-1-2008 based on the same criteria there have been 9 sales which translates to a 300% increase!  By the way a CMA analysis is based on just a 1 mile radius of the subject property and only criteria which fit the subject parameters.  I could analyze the whole City but you get the point.

I’m certain that Tony’s appraisals aren’t coming in nearly as high as they were before the mortgage (and market) meltdown of last summer, but higher sales activity translates into higher demand, which will ultimately draw down the oversupply. Low supply/high demand means a gradual increase in prices.

Of course all this hinges on a decline in foreclosure sales so that less inventory come on.

This entry was posted on Friday, May 2nd, 2008 at 10:32 am and is filed under Mortgage Meltdown, Market Conditions. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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