LOS ANGELES (April 24) – California pending home sales posted higher for the third consecutive month in March, rising from both the previous month and year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.  Additionally, the share of distressed sales dropped for the second consecutive month, as equity sales typically increase with the start of the spring home buying season.

Pending home sales:

C.A.R.’s Pending Home Sales Index (PHSI)* rose from a revised 126.5 in February to 143.7 in March, based on signed contracts.  The March 2012 index was the highest since April 2009, when the PHSI was 146.9.  The index also was up from the 128.9 index recorded in March 2011, marking the eleventh consecutive month that pending sales were higher than the previous year.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

Distressed housing market data:

• The share of equity sales – or non-distressed property sales – compared to total sales increased in March to 55.4, up from 51.1 percent in February.  Equity sales made up 50.2 percent of all sales in March 2011. • Meanwhile, the total share of all distressed property types sold statewide decreased in March to 44.6 percent, down from February’s 48.9 percent and from 49.8 percent in March 2011. • The share of short sales was down again in March.  Of the distressed properties sold statewide in March, 21.1 percent were short sales, down from February’s share of 23 percent but up from last March’s share of 20.1 percent. • The share of REO sales also declined in March to 23.1 percent, down from February’s 25.2 percent and down from the 29.4 percent recorded in March 2011.

If you are going to take advanatage, you are almostout of time. Call me now and I mean yesterday!

Also, if you need to short sell, time is running out. You need to complete it by Dec 31st. See previous posts and go to www.shortsaledignity.com

What is going on? Well….. there are lots of buyers and interest rates are still at record lows. There has been a small softening in lender requirements (a little easier to get a mortgage).

Now ….just to find a house (even a condo). That is the tough part. Nothing for sale.

We can say one thing. Everything that comes on the market is selling quickly and at the high end of its market value. There definitely is a upward pressure on price. But…..although buyers are willing to pay higher than market value, the appraisals are coming in at lagging market value. If the buyer can’t mke up the difference , the property is going to someone else.

Any buyer with cash really has a huge advantage right now, they can raise the market values across the board.

So….where are all the sellers? The foreclosures are predominantly in the far north, far west and far south suburbs. Not much going on in metro. Short sales? They will still be out there and be around for a while but with the tax relief expiring in December, many have already accomplished this task if they are going to.

Many other potential sellers have refinanced and locked in incredibly low rates and have seen their payments fall. Those that couldn’t refinance have accomplished a loan modification.  Again, a  great payment now, they are not going to sell.

Who is left? Not too many, and very few willing to sell at the current value structure. How about new construction?

When was the last time you saw more than 2 cranes in San Diego? Although there are a few builders around town, a real influx of new homes hasn’t happened yet. (they too want to wait for the prices to go up).

Everything is pointing to double digit increses in home prices in either 2014 or 2015. Let’s say it will be 3 to 5% the balance of 2012, 5 to 8 % in 2013 and being the optomist that I am 13 to 17 % in 2014. If credit gets looser and appraisers adjust to the market, these estimates may be low.

So what’s the point? If you still want to try and get a great deal, in San Diego  -  buy now!!!   If you can find something. For most, the bargain hunt at the bottom has passed them by. Make sure your Realtor shows you everything that comes on the market and be prepared to pay above the list price. Remember however, this will still be a great price at an incredible monthly payment. The interest rate is still your best friend, keep it around for 30 years!

If you still want to short sell, or know somebody who does … and you want to beat the December 31st deadline,  please check out shortsaledignity.com .

You will find information on many foreclosure alternatives. In the meantime, go buy something!

There are two builders right now D.R. Horton and Lennar. Lennar has Terraza and the less expensive Belmont both worth the stop! D.R.Horton has Altaire.  The models are incredible and worth perusing.

Certified New Home Specialist

I am a new construction fanatic and a CNHS (Certified New Home Specialist). If you are interested in looking in San Marcos, call me, I will take you on a tour of all the models at San Elijo. And…I am a serious negotiator and will get you an incredible deal over there (but you have to go with me – don’t worry, very friendly guy here). Call me at (619) 985-6528.

Feel free to check out the community and the floorplans, but…call me before you visit – your wallet will thank you in the end.

I am also a HAFA certified short sale specialist in case you know anyone with mortgage problems. Avoid foreclosure at all cost.  Check out www.shortsaledignity.com.

Come back then. In the meantime, please check out my website and get my free book Fighting Foreclosure at www.shortsaledignity.com and for the most advanced state-of-the-art San Diego property search which includes the entire San Diego MLS head straight for the At Home In San Diego website:

www.AtHomeInSanDiego.com

Susan Davis (D-San Diego)

A bill authored by House member Susan Davis (D-San Diego) was introduced  to Congress to give homeowners at risk of foreclosure a fair chance to avoid further damage to their credit rating. The Short Sale Transparency Act would require the nation’s giant mortgage lenders, Freddie Mac and Fannie Mae to disclose the minimum price they would be willing to accept for a short sale property if the first offer to purchase a home is not accepted.

This law would force bankers to provide the minimum price in an effort to aid the housing market.

Properties that are sold as short sales sell for less than what is currently owed on the mortgage principal, and must be approved by lenders in order to transfer title without blemishes on their title.

Short sales have increased as a last ditch effort by homeowners to avoid foreclosure. When the price a lender requires is unknown, short sales often become less viable. The “shot in the dark” method for determining bids to offer the bank are creating much wasted effort on all involved.

Loan servicers often repeatedly deny short sale offers without providing homeowners any guidance on the price the lender is willing to accept. As a result, many homeowners that may have sold their property as short sales end up as foreclosures. The bill would require lenders to disclose the minimum price that banks would take for their home to provide a level playing field for homeowners, banks and investors.

“People deserve a real chance to avoid foreclosure,” said Davis. “It is unfair to expect someone to complete a short sale instead of abandoning their home to foreclosure, if the banks don’t meet them half way. So many homeowners are willing, even eager to work with banks to get out from under the mortgage and protect their credit rating,but far too often, they find themselves in a guessing game as to what dollar amount will complete the sale.”

The bill was offered just weeks after another California Congresswoman, Maxine Waters (D-Los Angeles) called on President Barack Obama to offer bold solutions on jobs and the foreclosure crisis. Waters said Obama should demand bankers modify mortgages for millions of homeowners at risk of foreclosure.

The veteran Congresswoman has been a leading voice for homeowners at risk of losing their homes, calling for a foreclosure moratorium after the robo-signing scandal made headlines a year ago, and has lobbied to help homeowners and tenants renting properties at risk of foreclosure.

It appears the call to action is building, but it needs to happen now. For many, the legislation will be to little , too late.

All the short sale information you need go to ShortSaleDignity.com

We do expect San Diego prices to start rising soon as the inventory is low enough to create an upward pressure on price.

Want to buy a house in West Virginia?

One thing is for sure, 2012 and 2013 will be very interesting years for the housing market. There are quite a few variables including interest rates, how lenders will handle REO’s and short sales, and what the government will do.

One thing is for sure right now though…the interest rates are the lowest in history and prices are the lowest in 5 years. Chances are prices will not be this low again in our lifetimes.

How can you take advantage? Use any investment money to purchase real estate. Buy a condo and rent it out. When you calculate the numbers, you can easily get a positive cash flow with as little as 20% down.

If you want to take advantage of this opportunity of a lifetime in San Diego, call me at 619.985.6528 or visit the best property search in San Diego at AtHomeInSanDiego.com

One last thing for now….the current economic times have been difficult for many. If you are having mortgage challenges, don’t ignore them. They don’t go away by themselves. Check out my website at ShortSaleDignity.com .  There you will find my free book  Fighting Foreclosure. I can assist in San Diego but can also refer you to the best Certified Residential Specialist and short sale professional in your area.

CoreLogic August Home Price Index (year-over-year change)

Locally, the median price for all sales – including resale homes, resale condos and new homes – was $315,000 in September, down 1.6 percent from August and down 4.7 percent from a year ago. The new-homes sector was the only area that saw a year-over-year price gain, rising from $439,250 to $515,000, or 17.2 percent.
The county recorded 3,084 sales in September, down 5.1 percent from August but up 0.5 percent from the same time last year. The only sector that saw a positive year-over-year gain in sales last month was resale homes, rising 6 percent.
As a region, there were 18,149 total sales, counting Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in September. That figure is down 7.7 percent from August and up 0.3 percent from a year ago.
Demand is staying moderate because of affordability. The interest rates remain at or near all-time lows. In addition, prices are still at or near all time lows. What a combo, you would think demand would be through the roof. However, loans are still difficult to get and many people feel economic woes and are putting off any kind of “large purchase”.
Historical data from the data company show sales have fallen on average 8.3 percent between those months since 1988, when the real estate data company began tracking those numbers.
Meanwhile, the median price for total homes sold last month was $280,000, up 0.4 percent month-to-month but down 5.2 percent from a year ago.

Those who have the means who buy now will be looking back in 5 years saying “Thank god I bought those properties when I did!” The rest will be looking back and saying “If only I had….”

If you are lucky enough to be looking in San Diego, call me at 619.985.6528 or send me an email. And…if you are having any kind of mortgage difficulty, visit ShortSaleDignity.com.

Please feel free to leave any comments — thanks!

Shadow inventory

This shadow inventory will slow down the housing market recovery. Monthly foreclosure numbers will remain high through 2012 and the REO Inventories will remain high through 2013 possibly even 2014.  The banks hold about 800,000 REO and three quarters of those are not listed for sale.

The shadow inventory keeps home prices down for months and even years. States like California, Florida, Illinois, Georgia and Ohio have the largest shadow inventories. It takes more than a year for the bank to put up “For Sale” Signs.  All of the people 90 days or more past due are all potential foreclosures if they can’t accomplish a modification or a short sale.

Many short sale prices are not an accurate reflection of true market value.  Many buyers gravitate toward short sales for two reasons. The first is that the price is attractive and the second is that the potential buyer believes the seller is desperate.

Short sales are on the rise as the foreclosures have slowed over the last few months. This gives distressed homeowners who do not qualify for loan modification or refinancing a viable option to foreclosure. Short sales also give lenders the opportunity to avoid the long, costly and increasingly messy process of foreclosure
and the responsibility of reselling the property as an REO.

Once a property is foreclosed upon, the bank usually will not be able to get a higher price for the property. Many
times if the bank can negotiate with the seller’s buyer on the offer price for the property, they are going to get more for that property than if they take the property to sale.

So….if you are looking, go get a deal on a short sale or if your mortgage challenges have got you down, call me at 619.985.6528. I will take very good care of you in San Diego or refer you to the best CDPE, CRS  in your area.

Free book Fighting Foreclosure – get your copy NOW!

Please feel free to comment on the article. Call me in San Diego if you have any questions. I can refer you to a great agent in any city. My number is 619.985.6528.

Need to understand short sales? Head right on over to ShortSaleDignity.com. Do not put this off – the website is VERY informative . The best San Diego search online can be found at AtHomeInSanDiego.com. Check it out!

Selling a home is never painless, but during the current buyer’s market in many cities a house sale is more delicate than ever. That’s why choosing the most dependable realty agent will make a serious difference in both the price you get and the speed with which your residence sells.

Your starting decision is whether or not you require a real estate agent. Close To 20 percent of homes are sold with no professional real estate agents. However, many of those do-it-yourself sellers said next time they would find a professional broker. Additionally, many do-it-yourself home sellers eventually hire a real estate agent to market their homes.

With no realty agent you will have complete obligation for advertising, answering phone calls, demonstrating the house to likely purchasers, assisting with financing, preparing a lawfully binding sales contract, setting up the sale closing, and managing particulars of the sales agreement.

Nonetheless, there is something that is even more frightening than all this – competition with thousands of other houses for sale via the local MLS (multiple listing service).

This means that houses which are in the MLS have a privilege because dozens of them get presented by an agent to prospective buyers and a great deal of them meet the buyer’s wishes. Your single house doesn’t stand a chance to dozens of others.

Going through the procedure of picking out an agent is the best way to make up your mind if you actually require one. This procedure will allow you to find out all the things they do for house sellers and help you recognize if you necessitate marketing service.

Consult your neighbors to seeif they can recommend to you some professional real estate brokers. To find out whether or not you need an agent, you must speak with a minimum of three brokers who sell homes in your vicinity.

Alan Schmitt - Realtor

When selecting real estate agents to talk to, be sure to invite local brokers who have recently contacted you about either selling your house or calling you to their open houses of nearby homes currently listed for sale.

Also contact agents who had “for sale” signs on neighborhood houses which became “sold” signs. In addition, check the newspaper classified ads to learn which agents advertise homes for sale in your vicinity.

Last, phone nearby brokerage firms which specialize in homes in your region and ask the managing director for the name of that firm’s most successful agent who markets houses in your vicinity. Don’t merely cold call and talk with any available broker since you are probably to get an unpracticed agent who has “floor duty” when you call.

If you or someone you know is having ANY kind of mortgage problems, please have them go to my website and get my free book on foreclosure avoidance. It is so much easier than you think!

‘Til next time, make some comments and return here often!

A separate survey by the Mortgage Bankers Association suggested many homeowners and would-be homeowners are unwilling or unable to take advantage of record low rates, with demand for refinancings and purchase loans both falling last week.

Inman news reports that we have now surpassed the lowest of the low.

Fannie Mae economists are projecting that mortgage rates will stay well below 5 percent through 2013, and that demand for purchase loans will more than double in the next two years.

Freddie Mac’s survey showed rates on 30-year fixed-rate mortgages averaged 3.94 percent with an average 0.8 point for the week ending Oct. 6, down from 4.01 percent last week and a 2011 high of 5.05 percent in February. Rates on 30-year fixed-rate mortgages have never been lower in Freddie Mac records dating to 1971.

Call me at 619.985.6528 and I will refer you to the best Certified Residential specialist in your area. Of course, if you are in San Diego, call me. Not only will I find you an incredible loan, but…an awesome property to live in or for investment.  Now Is The Time.

Visit my website for the best local search available.  AtHomeInSanDiego.com