Tuesday, February 23, 2010
Data Extracted From Sacrealtor.org on Tuesday 2/23/2010
MLS STATISTICS for January 2010
January shows decreased activity, median price remains higher than year ago.A seasonally normal decrease in home sales signaled the open of the 2010 Sacramento real estate market.
The 1,159 home sales in January, a 29.7% decrease from the 1,648 sales of December. The trend continued year-to-year, showing a 24.8% decrease from the 1,542 sales of January 2009. The winter months affected the distribution of types of sales, with bank-owned properties making up 44.4% of the 1,159 sales. This is up 3.7% from the previous month. Short sales decreased by .9% (to 23.6% of sales) and conventional sales dropped by 3.4% (32% of sales). Many homeowners take their properties off the market during slow winter months while bank-owned and short sale properties remain to maximize activity.
The current median sales price of $170,000 is .6% higher than the $169,000 median price of January 2009. Month-to-month, the median price dropped 9.3% from $187,500, likely reflective of the many REO and short sale properties remaining on the market. According to the January MLS summary, nearly 31% of all homes sold were between $120,000 - $179,999, while 26.8% sold for $200,000 - $249,999.
“Inventory for buyers is lower than the numbers indicate, because homes listed as active short sale contingent aren’t really available,” Barbara Harsch, SAR President, commented. Active Short Sale Contingent properties are short sale properties on which initial offers have been made. SAR is now breaking out “Active Short Sale Contingent” in the listing inventory. When split from the total number, these properties number 2,224, making up 41.3% of all “active” listings. The total listing inventory decreased slightly (.8%) month-to-month from 5,425 to 5,379. This is a 9.4% decrease from the 5,935 listing inventory of January 2009.
The Housing Market Supply figure increased 39.4% month from 3.3 to 4.6 Months. This figure is 21.8% below the Housing Market Supply figure of January 2009. This figure represents the amount of time – in months – it would take to deplete the total listing inventory given the current rate of sales. According to MetroList® MLS data, the average home spent 54 days on market (from the time it was listed to the time escrow was opened) and was 1,657 square feet. Of the 1,159 sales this month, 125 (10.7%) had 2 bedrooms or fewer, 601 (51.8%) had 3 bedrooms, 335 (28.9%) were 4 bedroom properties and 98 properties (8.4%) had 5+ bedrooms.
Fannie Mae Offers New Closing Cost Assistance and Appliance Incentive for Homebuyers
FOR IMMEDIATE RELEASE: January 13, 2009
(RESIDENTIAL RESALE STATISTICS December 2009)
Sales rise for the year’s end, stability in sales prices
An increase in home sales marks an end to Sacramento’s 2009 real estate market activity.
After a month-to-month decrease, sales rebounded in December, increasing 14.5% with 1,648 units sold – 209 more than November. Year-to-year, however, the current figure is 14.7% below the 1,932 sales of December 2008. Bank-owned properties continue to make up a majority of home sales, with 671 units – or 40.7% of the total sales attributed to REO units. The remainder of the sales was comprised of short sales (24.5% or 403 units) and conventional sales (34.8% or 574 units). When compared with November, REO sales remained stable, while short sales showed an increase. Conventional sales showed a decrease, most likely attributed to homeowners taking their homes off the market.
December’s median sales price increased slightly month-to-month, from $187,000 to $187,500, a .3% change. The current median price is 4.5% above the $180,000 median price of December 2008, the second month in a row there have year-to-year increase in median sales price. Total listing inventory increased month-to-month (5,096 to 5,425), but decreased 16% from the 6,462 Total Listing Inventory of December 2008. The Housing Market Supply figure decreased slightly from 3.5 months November to 3.3 months this month. This figure is even with the Housing Market Supply figure of December 2008. This figure represents the amount of time – in months – it would take to deplete the total listing inventory given the current rate of sales. According to MetroList® MLS data, the average home spent 52 days on market (from the time it was listed to the time escrow was opened) and was 1,728 square feet. Of the 1,648 sales this month, 177 (10.7%) had 2 bedrooms or fewer, 842 (51.1%) had 3 bedrooms, 495 (30%) were 4 bedroom properties and 130 (7.8%) boasted 5+ bedrooms. A report that shows similar information for each Sacramento zip code is available at ims.sacrealtor.org, the REALTORS® only section of the SAR website.
Condominium Resale Market
Sacramento condominium sales decreased 2.6% from 117 last month to 114. Compared to last year, sales are down 8.1% from the 124 units sold in December 2008. REO properties made up 45.6% (52) of all sales while short sales accounted for 28.1% (32) of the sales. Conventional sales rounded out the remainder of the total, accounting for 26.3% or 30 sales. The condominium median sales price increased remained static month-to-month from at $100,000. This current price is up 7.5% from the $93,000 median sales price of December 2008. The total listing inventory increased 3.6% month-to-month from 495 listings to 513 listings. Compared with the total closed escrows, the total listing inventory represents 4.5 months of inventory in the local condominium market.
HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties
Saturday Jan 16 2010
WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.
"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.
In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.
The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.
An estimated 35,860 new and resale houses and condos were sold statewide last month. That was down 13.1 percent from 41,280 in October, and up 11.5 percent from 32,163 for November 2008. A decline in sales from October to November is normal for the season. California sales for the month of November have varied from a low of 25,578 in 2007 to a peak of 60,326 in 2004, while the November average is 40,377. MDA DataQuick's statistics go back to 1988.
The median price paid for a home last month was $261,000, up 1.6 percent from $257,000 in October, and up 1.2 percent from $258,000 for November a year ago. The year-over-year increase was the first since July 2007 when the $478,000 median was up 0.8 percent from $474,000 a year earlier.
Of the existing homes sold last month, 40.6 percent were properties that had been foreclosed on during the past year. That is the lowest since May 2008, when it was 39.8 percent. In November 2008 it was 55.9 percent. Foreclosure resales peaked at 58.8 percent of statewide resales in February this year.
The typical mortgage payment that home buyers committed themselves to paying last month was $1,106. That was up from $1,097 in October, and down from $1,249 for November a year ago. Adjusted for inflation, last month's mortgage payment was 48.3 percent below the spring 1989 peak of the prior real estate cycle. It was 58.1 percent below the current cycle's peak in June 2006.
MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.
Indicators of market distress continue to move in different directions. Foreclosure activity has declined somewhat but remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above-average in some markets, MDA DataQuick reported.
Consumer Alert - Advance Fees and Loan Modification Services
Important Notice: Advance Fees for Loan Modifications Now Prohibited (Effective immediately)
ADVANCE FEES FOR LOAN MODIFICATIONS NOW PROHIBITTED
Governor Arnold Schwarzenegger signed Senate Bill 94 (Calderon) which prohibits any person, including real estate licensees and lawyers, from demanding, charging, or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services. IF YOU ARE APPROACHED BY ANY PERSON REQUIRING UP FRONT FEES FOR THESE SERVICES DO NOT PAY THEM.
There are also non-profit agencies that can assist you without charging you a fee. For information on non-profit housing counseling services, use the following links:
If you have already entered into an agreement with a licensed real estate broker for loan modification or other mortgage loan forbearance services prior to October 11, 2009 and that broker had received a “no objection” letter from the Department of Real Estate, they are permitted to continue providing those services for you according to the terms of the contract. However, they are NOT permitted to collect any further advance fees from you. For a list of those individual and corporate real estate brokers who had received “no objection” letters, CLICK HERE
For more information on this subject please read the following alert: http://www.dre.ca.gov/pdf_docs/FraudWarningsCaDRE03_2009.pdf. You may also call the Mortgage Loan Activities Unit at (916) 227-0770.
Foreclosure Help Resources:
Department of Real Estate
Consumer tips for working directly with your lender on a loan modification:
FDIC Foreclosure Prevention Tool Kit
Thursday Jan7 2010