FROM HOPE TO HOPELESS- by Connie

PRESIDENT OBAMA RAN MUCH OF HIS CAMPAIGN ON THE WORD "HOPE". THESE PAST FEW WEEKS HIS MESSAGE HAS BEEN QUITE THE OPPOSITE. NOW SOME HOME SELLERS SAY THEY FEEL THERE IS NO "HOPE" OF SELLING.

HELP and HOPE EXISTS ON THE LOW END BUT HIGHER END HOME OWNERS ARE SUFFERING.

Disappointing Data gathered from the MLS for Beverly Hills Zip 90210 and only for Single Family Residence AND only from January 1 to March 1 of each year.

2007 49 Sales over 1 million dollars
2008 25 Sales over 1 million dollars
2009 9 Sales over 1 million dollars

It is common to find that a buyer can not qualify for a loan or that they want to cancel an escrow because the daily news is so unsettling. What I did not expect is for Sellers to call me and tell me they want to take their home off the market because there is NO HOPE of selling in this market.

1. At the start of this year I experienced a lot of activity and optimism due in part to hopes for this new President.
2. With the Stimulus being discussed, the bad news increased and the message of hope was lost. 3. Buyers seem to be disappearing especially from higher end markets, and now most recently, many sellers are feeling hopeless and want to give up trying.
4. This is dangerous since some of these sellers have little equity and waiting may bring more of these Sellers to foreclosure if they do not qualify for assistance.
5. California Home Sales are very strong in the low end hard hit areas because of the obvious deal-great prices, tax incentives to first time home buyers of 8000 dollars, a California state tax credit of up to 10,000 dollars for the purchase of a new home and both the federal tax incentive of 8000 and the California state tax credit of 10,000 can be taken by a buyer who qualifies for both.
6. Unless we have some real incentives like better rates for jumbo mortgages or investment tax credits to reward those that are taking a risk buying today, the higher end will continue to suffer.
7. Sales of existing, single-family homes soared 100.8 percent in January in California, and the median price declined 40.5 percent, accordingto the latest report from the CALIFORNIA ASSOCIATION OF REALTORS®.