Mewborn Team Real Estate Consultants: CoastalLuxurySanDiego.com

January 28th, 2012

Bank Owned Homes and Pre-Foreclosures sell at Lowest Prices

Categories: Buyers, Market Trends, Sellers

The share of bank-owned homes and homes in some stage of foreclosure dropped 5 percent from the first quarter to the second quarter, falling from 36 percent to 31 percent, but was up from 24 percent in second-quarter 2010, according to a report released today by foreclosure data provider RealtyTrac.

And distressed properties are selling at a larger discount these days, RealtyTrac reported:

• The average sales price of a bank-owned (also known as real estate owned or REO) home was $145,211 in the second quarter, which was about 40 percent below the average sales price of a nonforeclosure home. That compares with a 36 percent discount in first-quarter 2011 and a 34 percent discount in second-quarter 2010.

• The average sales price of a preforeclosure home (preforeclosures, which are homes in default or scheduled for sale at public auction, are often sold in a short-sale process) was $192,129 in the second quarter, which is 21 percent below the average sales price of a nonforeclosure home. That compares with a 17 percent discount in first-quarter 2011 and a 14 percent discount in second-quarter 2010.

There were 162,680 sales of bank-owned homes to third parties in the second quarter, RealtyTrac also reported, roughly flat compared with the 162,900 reported in the first quarter and down 10 percent from second-quarter 2010.

REO sales accounted for 19 percent of home sales in the second quarter, compared with 23 percent in the first quarter and 15 percent in second-quarter 2010.

There were 102,407 sales of preforeclosure homes to third parties in the second quarter of this year, up 19 percent from the first quarter but down 12 percent compared to second-quarter 2010. These sales accounted for 12 percent of sales in the second quarter of this year, flat with the first quarter and up 10 percent compared to second-quarter 2010.

“The jump in preforeclosure sales volume, coupled with bigger discounts on preforeclosures and a shorter average time to sell preforeclosures, all point to a housing market that is starting to focus on more efficiently clearing distressed inventory through more streamlined short sales — at least in some areas,” said James Saccacio, RealtyTrac CEO, in a statement.

“This gives distressed homeowners who do not qualify for loan modification or refinancing — or who are not interested in those options and want to sell — a better chance of completing a short sale to avoid foreclosure.”

Expedited short sales, he added, “also give lenders the opportunity to more pre-emptively purge nonperforming loans from their portfolios,” and avoid a lengthy foreclosure and REO process.

Tags: Home Prices

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January 28th, 2012

No Increases in San Diego Home Prices Until 2014?

Categories: Buyers, Market Trends, Sellers

Two prominent home-price indices continued to show declines in September and October, with one outlook indicating no more than flat growth in the next two years.

A home-price index report from loan data aggregator Lender Processing Services showed the national average sales price for single-family homes fell 4.4 percent year over year and 1.2 percent month to month in September, to $202,000.

LPS’ Home Price Index, tracks monthly sales in more than 13,500 ZIP codes. Prices declined on a monthly basis in all ZIP codes covered by LPS. The top 20 percent of homes (selling for more than $317,000) saw a slightly smaller monthly decline, 1.2 percent, than the lowest 20 percent (selling for less than $102,000), which saw a 1.4 percent drop.

“Home prices in September were consistent with the seasonal pattern that has been occurring since 2009,” said Kyle Lundstedt, LPS Applied Analytics’ managing director, in a statement.

“Each year, prices have risen in the spring, but revert in autumn to a downward trend that has not only erased the gains, but has led to an average 3.7 percent annual drop in prices to date. The partial data available for October suggests a further approximate decline of 1.1 percent.”

A report released by property data firm CoreLogic bears out the monthly decline in October. For the third straight month, nationwide single-family home prices fell on both a monthly and yearly basis, dropping 1.3 percent from September and 3.9 percent from October 2010. Excluding distressed sales (short sales and real estate owned home sales, also known as REOs), October’s index fell 0.5 percent from a year ago.

“Home prices continue to decline in response to the weak demand for housing. While many housing statistics are basically moving sideways, prices continue to correct for a supply and demand imbalance. Looking forward, our forecasts indicate flat growth through 2013,” said Mark Fleming, chief economist for CoreLogic, in a statement.

The index was down 32 percent in October from an April 2006 peak. Excluding distressed sales, the drop was 22.4 percent. CoreLogic’s index is based on 30 years of data for repeat sales transactions, and “price, time between sales, property type, loan type and distressed sales.”

Tags: Home Prices

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January 8th, 2012

Historically Low Interest Rates – Is now the time to buy?

Categories: Buyers, Home Loans, Interest Rates, Market Trends

Who ever would have guessed that we would actually see interest rates in the 2% to 3% range – especially for a prolonged period of time?  It AMAZES me that these rates have continued.  When I bought my first house in 1997, my interest rate was 8.5%, and everyone told me what a great rate that was.  REALLY????

If you are looking for a $500,000 home today, this is what it would look like at different rates (assuming a $500,000 purchase, 1% in property taxes and $500/year in hazard insurance)

As you can see, just a 3% change in interest rates can make as much of a difference as $1,000/mo in your payment.  As most of us are looking at buying a home, we normally buy at the absolute top of our price range.  We always want the nicest home we can get at the best payment possible.

So, if you are seriously looking for a home, this might be the time to jump into the market!  It seems to be the “perfect storm” for potential buyers – historically low home prices AND historically low interest rates.

If you have any questions, always feel free to contact The Mewborn Team.  We’re always happy to answer any questions or find you a resource that will be able to meet your needs!

Tags: Carlsbad Interest Rates, San Diego Interest Rates

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January 6th, 2012

Will you get your list price when you sell your house?

Categories: Market Trends, Sellers

What’s the best price to list your house at?  Will you be one of the lucky ones that gets MORE than their list price?  Will you get less – and if it’s less – how much less?????

Not surprisingly, there are a number of factors that determine the sale price percentage of your list price.

The biggest factor is current comparable inventory.  The more comparable inventory there is on the market, the more competition you have, and the “less valuable” your property may be perceived as.  On the flip side, if you happen to be only one of 9 listings in La Costa Oaks, then there is limited competition – so your property will likely be perceived as more valuable – likely bringing in a higher sales price.

One of the other major factors is the time of year you may be selling.  There are often more buyers out, looking to move in the summer.  Because there are more people looking, you have a higher likelihood of finding that person that may just fall in love with YOUR house, and be willing to pay more.

As La Costa Oaks real estate agents, we have seen a NUMBER Of times, that your first offer, is often your best offer!  Therefore, we always strongly encourage clients to price their property appropriately and be ready to entertain realistic offers early in the sale process.  It will give you a much higher likelihood of success in selling your home at a higher price.

If you have any questions about selling your La Costa or Carlsbad home, please feel free to contact The Mewborn Team for a free marketing consultation.  We would be happy to provide you with any information necessary to make the best decision possible regarding your Carlsbad real estate sale!

Tags: Market Trends

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January 4th, 2012

California Housing Market Outlook – 2012

Categories: Buyers, Market Trends, Sellers

According to the California Association of Realtors, California’s median price was has increased about 1%  in November – up to $280,960 in November, but down 5.2 percent from a year earlier.

The statewide median price had remained around $290,000 from February through September, so the past two months’ decline may be the fairly typical holiday slow down.

2012 is expected to be a transition year – depending much on the national and international economies.  It is expected to closely mirror any economic growth that we may (or may not) experience in 2012.

Although there are state and national real estate trends, San Diego  real estate tends to be very localized – with some market seeing growth, while other San Diego real estate markets may be trending downward.

To look at your specific market conditions, and to get a comparative marketing analysis on your Carlsbad real estate, please contact The Mewborn Team for more information!  We’re always happy to provide no obligation information.

Tags: California Real Estate Trends

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January 3rd, 2012

Is it time to become a landlord in San Diego?

Categories: Buyers, Market Trends

Carlsbad, CA –  As the real estate market has changed and values have declined, more Carlsbad families have lost their homes to foreclosure than in any time in the recent past!  As potential home owners are seeing this happen to their friends, more families are deciding to rent.

By renting, they are not responsible for home improvements, large maintenance expenses, taxes, and other unforeseen expenses!  They are instead able to budget for their rent, without the headaches and big costs that come up with home ownership.

But also, with this change, we are seeing people that would have been home owners have to either stay in or re-enter the rental market, creating rental shortages – ultimately driving rental prices up.  The US Census Bureau has reported that vacancies in the rental market are as low as 9.2%, down 1.4% from last year.  The last time we have seen rental vacancies this low was in 2003.

According to CNNMoney, the expectation is that in San Diego, rents may rise more than 31 percent by 2015.  Although we don’t know what will happen in the short term in the San Diego real estate market, we do know that historically, San Diego real estate averages 6-8% appreciation per year in the long term.

Between the expected rental increases and appreciation potential, if you happen to have enough money to put down on a rental property to ensure that any expenses would be covered by the rent, it may be time to buy a Carlsbad or San Diego rental property.

If you have any questions, and would like to know more about if buying San Diego rental property might be right for you, please contact The Mewborn Team for a no obligation consultation.

Tags: Carlsbad Homes For Sale

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February 3rd, 2010

You May Still OWE on Your Foreclosed Home, Even Though You Don’t OWN It Anymore

Categories: Carlsbad, Foreclosure Prevention, Market Trends, Sellers

Carlsbad, CA - Are you considering a foreclosure as a way to eliminate that payment? 

In today’s real estate market, more and more people are looking foreclosure out of both necessity and financial strategy.  If you give back your house, they can’t still hold you accountable for the loan, can they? 

Although California is a non-recourse state that typically says no – more and more banks are finding themselves successful in recouping losses from borrowers who refinanced their homes and used the funds for things other than improving the home itself!

In addition to the more severe credit penalties, a debt on a house you don’t even own anymore is really making foreclosures less desirable.  If you can not afford to make the payment on your home, you really may want to talk to a real estate professional about the possibility of a short sale instead.  In a short sale, you actually sign documents with the lender, releasing yourself from the obligation of the loan.  If you have any questions at all about your possibilities of a foreclosure or short sale, please contact The Mewborn Team.  We would be happy to schedule a no obligation marketing consultation.

Tags: Carlsbad Foreclosures, San Diego Foreclosure Prevention

Posted by Mike and Amy Mewborn// Please leave a comment.