Freddie Mac and Fannie Mae Cut Max Number of Financed Properties

Freddie Mac and Fannie Mae recently announced guideline changes that will greatly affect residential real estate investors. Beginning September 15, 2008 the following changes will go into effect:

• A borrower may not have more than four financed 1-4 unit properties, including the subject property.

• For cash out refinances the borrower must own the property for at least six months prior to refinancing.

For a complete update on new Freddie Mac guideline changes go to:

http://www.freddiemac.com/sell/guide/bulletins/pdf/bll042208.pdf.

Investors: BUY NOW!!!

The only mistake you can make is not to buy now! Decreased home sales prices and increased market rents continue to provide investors with positive cash flow opportunities.

Renters: BUY NOW!!!

The only mistake you can make is not to buy now! Renters who credit qualify find they may reduce their monthly housing costs by purchasing a home!

The charts below graphically depict the 12 month trend of declining average sales prices, and increased units sold.

Stockton Market Trend:

Increased foreclosures have resulted in depressed home prices. Homeowners looking for rentals to remain in the area have fueled the rental market, resulting in rents that sometimes exceed mortgage payments for comparable property.

Stockton Stats for July 2008

July 2008 Market  Summary

• The Stockton housing market continues to be a buyer's market. Homes for sale totaled 3,857 units compared to 3,158 units a year ago.

• Mortgagors control over 75% of the housing inventory. This is good news for buyers as finance companies are not renowned for their astute business decisions. Additionally banks must concern themselves about regulatory limits for non-yielding assets.

• Net new listings of 3,632 units out-numbered 3,041 units sold for the 12 month period by a ratio of 1.2 to 1. Average sales per month of 253 units for the 12 month period indicates that it could take 15 months to sell a new listing in today's market.

• Homes in selected areas provide many unique opportunities for qualified buyers. High quality, fairly priced homes continue to sell well.

Sample information

• The average home sold for $178,000.

• Foreclosure trends compound the problem of the excessive homes for sale inventory, and opportunities abound for qualified home buyers.

If you are thinking about selling or buying a home call your neighborhood experts - Your Home Team at Partners Real Estate. We are ranked in the Top 10 for closed sales in Stockton this year. We market to an email database of about 50,000 prospective buyers. We understand the market, and our experience can help you understand and capitalize on current market opportunities. Our experts can guide you through the complexities of today's real estate transactions.