It's Crunch Time

Foreclosure sales are driving the market. Buyers want properties when the market is near or at the perceived "bottom." In La Quinta approximately two-thirds of detached single family homes and condominiums fall within the foreclosure and short sale categories.
August sales in La Quinta saw 95 closed escrows (source: lqnews.com) with buyer activity on the rise. Many foreclosures are now accepting multiple purchase offers and buyers are not always getting their first choice of homes. Frustrated with the results of their efforts some are now setting their sights on good deals within the standard home market place. New home sales in August saw the lowest sales figures nationally in 17 years.
Underwriting guidelines from lenders are stringent and FICO scores over 800 are even being scrutinized. FHA loan programs seem to be solely responsible for keeping borrowers in the market for a home at this time. Some lenders of prominence are now declining to loan on second home jumbo loans. That's a big chunk of our La Quinta market!
At this hour we are awaiting some resolution to the proposed "mortgage bailout" and the stock market is skeptical of a quick decision on the part of our House and Senate.
The next week will be one to remember and the demand for La Quinta real estate is on the rise.