According to an article in The Desert Sun, Bob Thomas, lead field consultant for Real Data Strategies, has made this one-year trend observations for the first quarter of 2010:
“Cathedral City remains in recovery mode. There's been an erosion in average sales price of 5.3 percent; year-over-year, sales are flat at 211 units. The ratio between the list price and sale price is moving into the 90 percent level — and that gets buyer attention in this market. The home sale average was $171,588.”
Additionaly, MDA DataQuick of San Diego reported Tuesday that housing sales in
Southern California's real estate market year-over-year were flat in April, but median
prices rose 15 percent compared with April 2009, according to The Desert Sun:
“The DataQuick report on regional activity contrasts with an analysis of data done for The Desert Sun that shows Coachella Valley sales up nearly 58 percent from two years ago and up 17 percent from last year.”
“Real Data Strategies' analysis of the Multiple Listing Service for The Desert Sun also shows affordability is at 60 percent and the average sales price grew 16 percent to $290,952 in the first quarter of 2010 compared to the same period in 2009.”
“The market's still taking baby-steps on a long road to recovery, trying to find its footing,'' John Walsh, DataQuick president, said in a statement published in The Desert Sun . “It's unclear which of today's sales characteristics are part of a new reality, and which are still temporary turbulence.”
Sunday, May 23, 2010
Wednesday, May 12, 2010
Foreclosures and Short Sales
Short sales and foreclosures are the current hot topic in real estate with many of these types of transactions coming across the Escrow Officers desk. Foreclosures and short sales are often confused but they are two distinct processed supported by their own individual terminology. Following is a summary of many of the most common terms that a buyer and seller will experience in purchasing/selling either a foreclosure or short sale property.
FORECLOSURES
Pre-foreclosure: The period beginning with initial mortgage default up to when the distressed property is sold.
Notice of Default (NOD): Official notice from the lender that the Borrower has defaulted. The NOD formally starts the foreclosure process and it outlines the reinstatement period.
Reinstatement Period: The time frame stipulated in the NOD that the borrower has to reinstate the loan by making payments and bringing account back to good standing.
Trustee Sale: If after the reinstatement period has expired the loan is still in default the lender can then sell the property as soon as 21 days after the Notice of Trustee Sale is recorded.
Publication Period: It begins once the redemption period has expired and must be at least 21 days prior to the Trustee Sale. A notice is published once a week for three weeks in the local newspaper.
Notice of Trustee Sale (NTS): Recorded document explaining when and where the foreclose sale will be held.
Redemption Period: The time period that the distressed borrower has to redeem the loan after the NOD is recorded. In California, that time period is 90 days. (Not to be confused with statutory right of redemption).
Statutory Right of Redemption: One year after the Trustee Sale, the borrower can make payment of the loan in full plus costs to redeem.
Real Estate Owned (REO): The status of the property when the ownership is transferred involuntarily from the homeowner to the bank.
SHORT SALES
Short Sale: When a lender agrees to accept less than what is owed on the mortgage and release its lien on the property.
The Property is “upside down”: This phrase is commonly used to describe a situation where the amount due on the existing loan is higher than what the property is appraised for or will sell for.
Loss Mitigation Department: The department at the lender that is responsible for reviewing all short sale documentation, ordering a BPO, and approving or denying short sale.
BPO: Brokers Price Opinion (BPO), typically ordered by lender, is a property valuation report to help determine what the property might sell for.
FORECLOSURES
Pre-foreclosure: The period beginning with initial mortgage default up to when the distressed property is sold.
Notice of Default (NOD): Official notice from the lender that the Borrower has defaulted. The NOD formally starts the foreclosure process and it outlines the reinstatement period.
Reinstatement Period: The time frame stipulated in the NOD that the borrower has to reinstate the loan by making payments and bringing account back to good standing.
Trustee Sale: If after the reinstatement period has expired the loan is still in default the lender can then sell the property as soon as 21 days after the Notice of Trustee Sale is recorded.
Publication Period: It begins once the redemption period has expired and must be at least 21 days prior to the Trustee Sale. A notice is published once a week for three weeks in the local newspaper.
Notice of Trustee Sale (NTS): Recorded document explaining when and where the foreclose sale will be held.
Redemption Period: The time period that the distressed borrower has to redeem the loan after the NOD is recorded. In California, that time period is 90 days. (Not to be confused with statutory right of redemption).
Statutory Right of Redemption: One year after the Trustee Sale, the borrower can make payment of the loan in full plus costs to redeem.
Real Estate Owned (REO): The status of the property when the ownership is transferred involuntarily from the homeowner to the bank.
SHORT SALES
Short Sale: When a lender agrees to accept less than what is owed on the mortgage and release its lien on the property.
The Property is “upside down”: This phrase is commonly used to describe a situation where the amount due on the existing loan is higher than what the property is appraised for or will sell for.
Loss Mitigation Department: The department at the lender that is responsible for reviewing all short sale documentation, ordering a BPO, and approving or denying short sale.
BPO: Brokers Price Opinion (BPO), typically ordered by lender, is a property valuation report to help determine what the property might sell for.
Thursday, May 6, 2010
What is my home worth?
Since January 2010, there have been 8 homes sold, the lowest priced home sold for $101.47sq.ft., the highest priced home sold for $136.90sq.ft., this home in particular has a pool.
There were 1 short sale, 3 bank owned sale and 4 regular sales. Distressed properties in the area are still keeping prices lower than they should be for this type of home. The hope is that the worst is almost over and values rebound.
There are 3 homes presently on the market, and are listed from $115.56sq.ft. to $165.99sq.ft.
Other than that, there are several homes that are either contingent or pending in escrow. I will be able to provide further information as they close escrow.
I hope this information is valuable, and I will be happy to answer any question that you may have.
I can be reached at 760-799-1540 or via email at corina@windermere.com
There were 1 short sale, 3 bank owned sale and 4 regular sales. Distressed properties in the area are still keeping prices lower than they should be for this type of home. The hope is that the worst is almost over and values rebound.
There are 3 homes presently on the market, and are listed from $115.56sq.ft. to $165.99sq.ft.
Other than that, there are several homes that are either contingent or pending in escrow. I will be able to provide further information as they close escrow.
I hope this information is valuable, and I will be happy to answer any question that you may have.
I can be reached at 760-799-1540 or via email at corina@windermere.com
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