In July, contracts to buy previously owned homes rose to their highest level in more than two years… suggesting that the Housing Market Recovery is Making Headway.
The Pending Home Sales Index set by the National Association of Realtors, based on contracts signed in July, rose 2.4 % to 101.7 – the highest level since April 2010… and just before the deadline for the home buyer tax credit.
With gains in home construction and sales and prices, the report was just the latest one to show momentum in housing market recovery. Pending home sales were up 12.4% year-over-year in July.
Monthly increases in home buying activity were seen in all regions except for the West. . . this is because of the extreme lack of inventory there. The West saw a 1.7% drop in contracts last month. Contracts in the Northeast gained 0.5 % last month and the Midwest increased 3.4%. In the South, contracts rose 5.2%.
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Market Stats for the Palm Springs Valley
It would appear that looking into our rear view mirrors, we can now see that the 4th Quarter of 2011 was very likely the “bottom” of our local real estate market. Consistent housing reports continue to support that fact that our local price/sf is going up and in many different price points. Most notably, the entry level homes which are approximately $200,000 and below. Sellers are moving back into the drivers seats!
Low Inventory is the number one factor behind this price/sf increase in all price points except perhaps, the Luxury homes. Even in the luxurry home market however, the homes with the most desireable orientation (for maximum sun), great views and homes in good condition are selling. Buyers appear less cautious and Sellers appear more realistic in their prices if they want to sell.
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Number of foreclosures across the Palm Springs Valley fell significantly in July at a rate of 24.5% from July 2011. A new report shows that this marks 12 months of double-digit declines. The 753 bank repossessions, notices of default and trustee sale notifications that were issued in July were down from 1,096 issued in July of 2011.
A more limited inventory is available because of this drop in foreclosures for sale. Prospective buyers are not finding the availability of foreclosures to choose from that they once did.
The sustained drop in repos, trustee sales and default notices doesn’t translate to a drying up of available foreclosures for sale any time soon, according to real estate experts.
The valley here experienced a slight decline of initial default notices last month- there were 335 compared to 344 in July of 2011.
Experts say that many people are continuing to be challenged with getting banks to offer them loan modifications that would work for them – so they just aren’t paying. When that happens, the banks issue notices of default, but don’t complete the foreclosure process. Experts say that the banks are trying to get people to short sale their home rather than go through a full foreclosure.
Short sales and bank-owneds have recently accounted for far fewer of overall home sales than a year or two ago. Local experts expect more short sales and fewer foreclosures in the coming few years. They are seeing homeowners who are 20 to 30% underwater receiving loan modifications including principal reductions – but they say homeowners who are 50% or more underwater will short sell, as they will never get enough principal reduction to make keeping their home a viable option.
Contemplating short selling your home? Then consider using an agent who is knowledgeable and experienced in Short Sales and has a good track record of closing the deals. Contact Kim Kelly with HK Lane Real Estate – she Lists, Negotiates and CLOSES her deals. Call her now for a free consultation. You’ll be glad you did !
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Beautiful land..Palm Springs Valley
Here in the Palm Springs Valley, we LOVE our foreigners..and apprently, they love us right back. Property buyers from Canada, Asia, China, Europe, Australia, New Zealand..and I even have a client coming over from Central America in a couple weeks..wow! But..I already knew we were selling Land, Ranches & Residential properties soI was pleasantly surprised when I read this morning about how the Foreign Investments in our Business community are pumping alot of dollars into our local economy.
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Short Sales could slow down if principles are reset..a good thing!
I’ve been saying this for the past 3 years or so..why not reset mortgage principles to say…Fair Market Value + 20%? When I ask my underwater homeowners if they’d stay in their homes if THEY could get the Short Sale value I’ve proposed to them, they always respond “Yes!”
This article from New York Times today hits on this idea in San Bernardino County..which has just declared bankruptcy by the way, so might be a good place to test this eminent domain idea.
The stumbling block is always the same…the bankers get their skirts blown up “even thinking about letting the governement step in to take control of our mortgages.” Well..somebody has to! If the Banksters want to continue to set their own mortgages, why not work out a program with the current homeowners to keep them in their homes? Turn a non-performing asset into a performing one??? The reason could be that the Banksters do not want to report the TRUE VALUE of their assets to their prized shareholders until they are good and ready. Hey..a little coloring outside the lines for the Banksters is nothing new, right???
Until Mortgage values are reset, if you are underwater, give me a call for your free Short Sale consultation..760-285-3578.
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The Gates are re-opening in New Home Developments in La Quinta..
New homes in La Quinta and the Palm Springs Valley have been languishing for the past 3-4 years. After working in the New Homes Industry for 5 years myself, it was like running into a wall.
But in the first quarter of 2012, the New Homes Industry is beginning to show much forward momentum. There are currently more Buyers than homes for sale in many areas of La Quinta and the Palm Springs Valley. Many Buyers are just getting tired of the “used and often tattered” conditions of resale homes..especially what’s left after the Investors have picked them over. The timing is perfect for the New Homes industry to pick up, as shown in today’s Desert Sun.
It might be the right time if you are considering buying a home in our beautiful winter paradise, to consider a new home once again..
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La Quinta Buyers..do you qualify for a mortgage with a 3 in front of it???
You too could qualify for a mortgage rate with a 3 in front of it. Refinance? Same thing. This is a very enlightening article from today’s New York Times talking about a young couple that did just that. Huge documentation will be required of course, but that’s true with ANY mortgage or refi.
The keys are…
1. Your Credit score..it needs to be in the 700’s minimum.
2. Money in the bank..prove you can cover a couple months’ payments.
3. Job Security..prove you’ve got a good job that seems secure
4. Other assets? The more cash, or paid off assets..the higher your odds.
The appraisals are starting to come in where they should here in the Palm Springs Valley, so if you’re qualified, why not give it a go? Of course..the paperwork will be equal to that of a Short Sale, so have your docs in order!
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Trilogy in La Quinta
I am sticking to my belief and oft stated stance that 4th quarter 2011 was THE bottom for La Quinta and Palm Springs valley real estate. Why? The price per sq foot has gone up consistently since then for most developments. This article from today’s New York Times supports this idea. Each city and state is diferent but across the board in desireable areas, homes are selling!
Here in the Palm Springs Valley, it used to be just the entry level that received multiple offers, but it’s becoming more common now in the mid range..$600-$850,000 too. And inventory is down.
Don’t wait too long to step up and buy. Short Sales are still snapped up, but there are less of them to go around! Refis and loan mods are working to help keep people in their homes. Summer is a great time to look for property in our beautiful desert valley…come on out and see what all the hype’s about!
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Beautiful La Quinta
…and not just the City of La Quinta. All the desert cities through the Palm Springs Valley showed significant increases in Sales numbers (up approx. 6.1% from May, 2011).
My Equity Listings (standard sales) are generating multiple offers now too..it’s NOT just the short sales or foreclosures. If Sellers price their properties right..and I mean in the Luxury Market too..they WILL sell! Don’t get greedy, continue to be sensible and take a look at this article from today’s local paper about the Sales numbers and price changes for La Quinta and the Palm Springs Valley.
The number of distressed properties dropped from approx. 48% of sales to approx. 40% of combined sales. Inventory levels: Single Family homes: 2,266 and available Condos: 1,113.
The Median sales price in La Quinta jumped to $302,000 and there were a total of 165 Sales closed. Median sales numbers are up through the entire valley by approx. 6% from a year ago. This is due to more luxury properties selling. Good news for the Housing Market in our Valley.
Inventory has not been this low since 2005! Combine that with great mortgage rates and the heat is on!
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In the Palm Springs area and across the U.S., foreign buyers hunting for safe investments have been flocking to the U.S. housing market, attracted by low the prices here.
International clients accounted for $82.5 billion worth of sales during the 12 months ending in March, according to a survey by the National Association of Realtors . Compare that to the $66.4 billion spent over the same period a year earlier.
These foreign purchasers , mostly from Britain, Canada, China, India and Mexico, made up 55% of all international purchasers. The four states of California, Arizona, Florida and Texas – accounted for 51% of the states in which international buyers purchased homes.
Several factors are driving foreign buyers to purchase in the locations they did, including proximity to their home countries, climate and convenience. It seems the East Coast attracted mostly Europeans buyers while the West Coast attracted mostly Asians. Florida has drawn South Americans, Canadians and Europeans.
There are many happy and proud new Canadian homeowners in our Palm Springs area here. I happen to have new Canadian neighbors across the street from my home. They got a great little Santa Fe with western exposure that’s taking some work to get it back into shape. But, they’re happy with their smoking deal and we’re happy to have nice, friendly neighbors who take pride in their home . . . even though they can only be there six months out of the year. It’s a win-win for everyone.
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