Beautiful quiet streets of La Quinta
Real Estate Sales rose over all in the month of March and now again in the month of April..over the same months a year ago. In fact, says Data Quick (the real estate info firm), April saw about a 6% jump in the median number for the state of California..to $264,000. In Southern California it jumped even more..about 3.6% to $290,000! So what??? Median doesn’t mean much except that half of the homes sold above that number and half below. Any time the median goes up, you can figure more pricey properties are selling..and that’s a good thing.
In our local Palm Springs Valley, La Quinta especially, I am seeing this in spades. I keep reading obout “shadow inventory”..I say “bring it on!”. We have enough buyers waiting to purchase in our resort Valley to absorb this inventory the banks’ keep promising they have. Where is it? My Short Sales still confuse the poor Lenders to the point where I have to figure whoever is keeping track of foreclosures has no clue.
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Even though the number of foreclosure filings dropped last month in California, a real estate tracking firm has reported that Riverside County had the highest foreclosure rate in the state. Countywide, 1 in every 208 households was found to be in some stage of foreclosure – REOs, auction sale notices or mortgage default notices – for a total of 3,850.
Even so, the number of filings was still 12% lower than in March – an approx. 28% less than the foreclosure rate in Riverside a year ago. Nationally, there was a 5% decline in April when compared to March… and 14% less than a year ago. The tracking firm found that this is the lowest foreclosure rate recorded since July of 2007, before the bubble burst.
Last month, California ranked second in the nation in number of foreclosures – with 39,008 filings. This was 14% less than the number in March and 30% lower than last year – when 1 in 351 homes were in default in the state.
The highest foreclosure rate nationwide last month was in Nevada, with 1 in 300 homes in default. California was second, with Florida right behind it with 1 in 364. Number 4 was Arizona with 1 in 377 and follow that with Georgia at Number 5 with 1 in 398 homes in foreclosure.
Looks like we’re not out of the the foreclosure woods yet . . . could this rise in the foreclosure rate be from banks and mortgage lenders processing the foreclosures faster and more efficiently??
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I sell houses. There..I’ve said it. Sometimes when I tell people this, they look at me knowingly and I can just imagine that they are equating my job with that of a used car salesman or woman. There ARE those Realtors..but I am not one of them. I am a Realist and I have been very uneasy over the past several seasons saying anything at all like “we are recovering!”
Watching the La Quinta market recover
Even I, however, am beginning to think that we will be looking in our rear view mirrors and saying, “2011..that was the bottom.” It does appear that the housing market is stabilizing..all over California according to this article from the LA Times today.. In my own area of the Palm Springs Valley, I am experiencing this upswing daily. The Low End-say $250,000 and under is incuring multiple offers on nearly every home. If a Buyer is trying to purchase with an FHA loan, they will be offering way over List Price and even then, the odds are low they’ll be chosen. Cash & Conventional Loans kick FHA to the bottom of the pile for Sellers.
Even Investors are seeing the market changes. They can no longer make their numbers work..why? Because there aren’t any obscenely under priced homes for sale! The middle tier..$500,000-$850,000 is settling too. Great views and locations are being snapped up. The Luxury Market is still in flux and those Buyers are still pretty fickle..believing they can get a better price if they just wait.
La Quinta and the Palm Springs Valley in general is on the upswing..
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B of A gives principal reductions???
Bank of America NEVER “gives” anything away for nothing. So..I suspect the devil will be in the details with this new little gig. Part of the 26 billion dollar governement settlement, Bank of America is offering 200,000 lucky homeowners that qualify principle reductions. Isn’t that nice of them???
Unfortunately, alot of things must happen…
1. The borrower has to receive, open and read their letter that they are sending in the mail. I would suspecst that many of these “select 200,000 borrowers” have already jumped ship. If they are still there, they are pretty much hiding from their Lender and are OVER getting mail from them. Wonder how many will even open the letters?
2. You have to qualify. We all know about the qualifying process with B of A for Loan Mods and Short Sales. I suspect the paperwork is huge and the negotiator numbers are not.
3. They will write off up to $100,000..yippee! That will help some, but in my area of the Palm Springs Valley, $100,000 isn’t much..in ANY price point.
Let’s see if this program is a little more efficient that Bank of America’s 48 hr. buyer substitution program is. That is a complete disaster. But..I’m an positive thinker and I choose to believe this one is “going to work!” Good luck to all!
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81-375 National Dr. short sale
Seller just accepted an offer on 81-375 National Dr., La Quinta, CA. Now the work begins in ernest for your Short Sale Listing Agent.
1. Seller receives list of required documents including financial docs, hardship letter and lender specific documents..all of which they already have a list of. Now it’s time to gather them up!
2. Buyer’s Agent receives copies of relevent docs.
3. Lenders packages are put together (two loans here..two packages)
4. Lenders packages are scrutinized and then submitted. One is online, one is via dinasour fax.
5. Follow ups are scheduled and relentlessly held to..
Remember that the Listing Agent in a Short Sale is your key to success. Both for the Short Sale seller as well as the new Short Sale buyer. We need to be organized, tenacious, and of the “never say die” mentality.
And the ride begins!
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La Quinta's property values have increased..
Our Palm Springs Valley is rising it’s real estate value head..good for everyone living here or owning here. Buyers still get great value, but their selection is not as great and the price/sf has inched up a bit. It has become a very competitive Buyers’ market in La Quinta, California.
The Valley’s median home price, (half sold for more, half for less) was $210,000 in March. UP from $195,000 in February..a substantial increase. More luxury homes are being sold which pulls the median up. Across the entire valley, approx. 1,152 homes sold in March, a 3.3% increase from March of 2011. The big indicator? New Homes actually started selling! Approx. 60 new homes closed in March of 2012..that’s fantastic!
La Quinta Sales Statistics for March, 2012:
Total Sales: 166 Change from 2011 was up 19.4%!
Median price: $322,500 Change from 2011 was up 13.2%!
Highest priced Sale: $3,300,000 Median price/sf is up about 6% to $155/sf
If you are thinking of purchasing a vacation home or even moving up to a larger, or smaller, or newer property..2012 may be the year to actually do it! I am seeing a significant reduction of choices in all price points. Multiple offers are becoming the norm, so don’t try to “lowball” the Seller. Offer fair market value and make your offer clean and easy for the Seller. You’ll have a much better chance of success!
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la quinta home buyers; multiple offers
La Quinta and the Palm Springs Valley is on fire. The entry level price point used to be saturated with inventory..up until about mid 2011. Last quarter of 2011 and first quarter 2012 and now to second quarter..things have changed. The mid price ranges..$500-$800,000 have largely moved laterally. Meaning there is still inventory and the price/sf has not changed dramatically over the past 18 months or so. Luxury properties and super luxury properties have come down and are selling. However, they will most likely see more price decreases through 2012.
The entry level however has more buyers than it has inventory. So..that led me to this blog. I often work with Investors, and also first time buyers that will NOT offer a number that will win the bid. They are still in the past..”no matter the price, offer less..sellers are desperate..and hey, I’m cash!” Doesn’t matter..
If you have found a fantastic property that is listed fairly, it will probably garner multiple offers. Short Sales in La Quinta generate mulitples almost always..
1. Cash still trumps, but NOT if your cash offer is way below fair market value. Sellers know they will get what they have it listed at. Cash does eliminate potential contingencies and also decreases close time, so that is worth something. However, do not think you are the ONLY cash buyer..you are not.
2. Loan type: If you are a conventional loan buyer, you should offer List Price or a little above to beat out the Cash buyers on a multiple offer property. If you are FHA or asking for Closing Costs, your offer needs to be better than List price because Seller has to see a value to crediting you back your closing costs. You will be competing with Cash buyers..make your offer stronger to persuade the Seller that you are serious!
3. Clean, well written offers: Don’t tangle your offer up with contingencies, and pieces of furnishings, and this and that. Make it easy, clean and straight forward. Nobody wants to have to “figure out” what you want. Sellers want it as easy and clean as possible.
4. Cash buyers…don’t be arrogant. There are many other cash buyers in the market. Investors, foreigners, people that saved their $, people pulling cash out of CD’s and buying real estate..make an offer that makes sense!
Get there first. Submit a clean, fair offer..that means pay attention to the comps and believe them! Your Realtor should be giving you a number that will garner attention..listen! If you are interested in Short Sales, that’s for another blog..
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Most Banks say, "Wasn't me!"
..but will they have any impact? The reality is that these programs are always coming up with something new such as..
Fannie Mae & Freddie Mac offer quicker Short Sale Responses
Remember that in the short sale world, the Servicer is the entity that collects your monthly mortgage payment. The Investors are the entities that actually OWN the note. Fannie & Freddie invested in millions of loans and now are left holding the bag on underwater loans. I love that they are offering these timeline guidelines. Let’s hope they actually ACT on them!!!
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With home prices still falling in La Quinta and across America, could the housing market really be healing? That’s what two of the major U.S. banks say – Wells Fargo and Chase. Their earning reports disclosed that more Americans are taking out loans, paying them on time and taking advantage of low interest rates to refinance.
Chase, the biggest bank in the U.S., says that their income from new home loans made from January through March is record-breaking. They issued 6% more loans than this time last year and received 33% more applications.
At Wells Fargo, the bank issuing the most home loans, booked the most mortgage fees since 2009 and issued 54% more mortgages than a year ago . . . and took in 84% more applications.
As manufacturing and consumer spending have held their own or grown, the housing market has been the biggest drag on our nation’s economic recovery. Home prices are still falling, but have slowed down in the past serveral years and more than half a million American homes were in the foreclosure process at the end of March.
Yet, the stronger mortgage business reported by Chase and Wells Fargo helped to surpass Wall Street’s expectations for first-quarter earnings. Signs are encouraging and it’s a wait-and-see process as the year 2012 unfolds.
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The number of La Quinta homes and homes across the country that received first-time foreclosure notices rose 7% in March from the previous month, marking the third consecutive monthly increase this year. This increase reflects the heightened efforts of banks in taking action against homeowners who are behind with their mortgage payments.
Some real estate experts are pointing out that we have not seen the last of rising foreclosures and that there will be many more to come down the pipeline. Foreclosure activity slowed down markedly in the fall of 2010 – that’s when claims began to surface regarding banks and mortgage servicers processing foreclosures without properly verifying documents. Since then, a $25 billion settlement was reached in February between the largest U.S. mortgage lenders and state officials. This paved the way for banks to now take action on unpaid mortgages, some of which have been hanging in limbo for months and years. These are the homes that may be looking at being foreclosed and eventually ending up back on the market.
Typically, foreclosures sell at a discounted price compared to other homes and these sales can drag down the value of neighboring properties . . . meaning that it could now take even longer for home prices in certain markets to gain value.
Some experts are saying that it’s likely that the new crop of foreclosures will arrive in smaller waves throughout the year rather than all at one time. The sad part is that even more Americans will be losing their homes, never good.
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