And though the buyers came back after the New Year, that's about when the seller’s disappeared. My guess is that the sellers who want to trade-up, are waiting to sell their homes when it becomes easier to buy (more inventory). Sellers will come-out eventually. Mean while, selling agents’ are once again telling buyers when to submit their offers.

Investment Opportunity

Though the market is hot where schools are great, I am seeing excess inventory caused by foreclosures, and investors bailing out in out lying areas like Modesto, Redding, Riverside, Tracy, and Stockton. Demand in these areas also fell off with the increase of gasoline prices. The impact is a supply-demand imbalance resulting in forced price declines. If you are interested in buying investment property in California, this may be the year you will find cash-flow positive opportunities with 20% down. Have your home equity lines ready to take advantage of this future opportunity. An area I particularly like is the Temecula-Murietta area in Riverside County.

Time to Refinance that ARM
 

Mortgage rates hit an eleven month low on Dec. 1, 2006 when the 10-Treasury hit a low yield of 4.425%. It’s moved up after that but is once again approaching a relative low with 10 year Treasury yielding 4.497% on March 7. If you want to convert your ARM to a fixed rate then, now would be a good time. Call me to discuss options.