Latest Foreclosure Date from the Cromford Report April 2012

Here is the Foreclosure Data from the Cromford Report for April.

Here is the Take Away! 

1. Active Notices of trustee sale for residential properties as of the end of April’12 were 17,768 units. Up from last month of 16,947.  Down from the all-time high of December ’09 of 47,606.

 2.  Residential Foreclosures were at their all-time high in March 2010 at 5,451. Residential foreclosures were 1647 last month. This was down by 316 units from March.

3. The residential REO properties are sitting at 6,711 vs. last month of 7,408. Down 697 units from last month! April of 2011 there were 19,322 REO properties, down 65%! Listed REO properties are approximately 1345 units and pending are 2120. That tells us that there are approximately 3246 properties that are foreclosed but not yet on the market.

4. Normal Sales are at the highest point in the last 5 years.  They represent 56% of total sales!

Business continues to be strong. We have a rare opportunity for buyers! Interest rates are very low and prices are still low….. But not for long. REO (Bank Owned) properties seem to be going away as short sales continue to get approved.

Market Update from February 18, 2012 to March 18, 2012

Market Update from February 18 – March 18, 2012

Inventory (All Areas & Types in MLS): Total active listings have dropped by 1622 units in the last month. As of March 18th, we sit at 22,972 Actives for Single Family Homes and Condos. Sales are at 7447 for the last 30 days (as of March 18th), down by 335 units from one month ago. Pending Sales are up from the month before – as of March 18th, there are 12,433 Pending vs. 11,743 Pending one month ago ~ about a 6% increase. We are currently sitting at a 3.1 months of supply. If you subtract out the AWCs, we have approximately 14,684 Active Listings, which is an approximate 1.9 months of supply.  Traditionally, 3-4 months of supply indicate a balanced market. Now is the time to list your home!

Closings (Maricopa County: New Construction and Re-Sales): There were 7293 closings in February 2012 vs. 6373 closings in January 2012, which equates to an 18% increase. There were 6520 closings in February 2011, which is a year-over-year increase of 3%.

Luxury: The Luxury Market of $1,000,000+ continues to have the lowest absorption rate of any market segment. There was a 4% absorption rate for the month of February. Only 46 properties in all of the MLS were sold for more than $1,000,000 in February 2012.

NEW GRAPH: Monthly Average Sales Price per Square Foot. It goes back two years. As you will see, prices are going up!

5 Foreclosure Myths for 2012

There is a lot of “urban legend” circulating when it comes to foreclosures and the current state of the real estate market.  The steals and deals are gone, but you can still get a great buy an on a good home.  Here are some important things to be aware of in the foreclosure market.  Read on…

March 14, 2012|

Author: Carl Medford, a practicing Realtor with Prudential California Realty in the San Francisco Bay Area

Beginning in 2007, foreclosures rocked the real estate world. Like an out-of-control freight train, they began decimating the market, peaking in 2009. Myths and rumors began propagating like mushrooms as consumers struggled to understand the new reality. Although many misconceptions have come and gone, we still encounter five myths on a regular basis.

1. There is going to be a flood of new foreclosures to the market.

This rumor has appeared every year since 2008 and has been routinely debunked. However, recent announcements that the Feds reached a settlement over the robo-signing scandal have reignited speculation. The idea is simple: Since the cork is now out of the foreclosure bottle, we’ll soon see another flood of REOs inundating the marketplace.

My personal opinion: don’t hold your breath.

Banks have learned that if they control inventory, they can affect local prices. By releasing homes in measured amounts, they realize higher prices than if they released a glut of homes. In addition, they’ve learned that if they can mitigate their losses by agreeing to a short sale, everyone wins.

2. You can go directly to a bank to buy a foreclosure.

Every few weeks I’m asked how to buy foreclosures direct from a bank. Someone knows a friend being foreclosed on and they want to step in and grab the house before it hits the market. Don’t we all? In reality, banks have a simple system – they first offer properties on the courthouse steps. The rest they assign to asset mangers who then hire local real estate agents to put them on the market along with all the other homes. Want an REO? Pay cash at the courthouse steps or get in line witheveryone else when they hit the local MLS (Multiple Listing Service).

3. You can get a killer deal by submitting lowball offers on foreclosures.

You would think this myth would be dead by now. Unfortunately, like Elvis sightings, it just won’t go away. Here’s the truth: Banks want REOs sold in 30 days or less, so they typically appear on the market priced slightly under comparable properties. If the property doesn’t sell quickly, the bank will lower the price after about 30 days. Lowball offers are ignored and are, quite frankly, a waste of everyone’s time and effort. You might get a deal by offering a lower price on a foreclosure that’s been sitting on the market for more than 90 days, but remember that there are good reasons it’s gone unsold for so long. And even if you have cash, your lowball offer won’t be accepted —seriously.

4. You can’t use foreclosures when doing an appraisal.

Or short sales, for that matter. That is no longer true. In fact, in many neighborhoods, that’s all that’s there. Therefore, foreclosed or distressed sales represent the actual value of homes in the area and HAVE to be used to appraise other properties. Don’t like it? Get over it. Times have changed and the ways neighborhoods are valued have changed as well.

5. Foreclosures are only affecting the bottom end of the market.

This used to be true. However, while foreclosure rates on the lower end of the market have actually decreased, they’re actually increasing on the upper end. According to Daren Blomquist, vice president of RealtyTrac, the market share of foreclosed homes under $1 million is shrinking, but those among properties valued over $1 million are rising – up 115% since 2007. And foreclosures on properties valued upwards of $2 million have increased by 273%. While some well-known jet-setters have melted down and lost everything, others are choosing to strategically default. They see it like liquidating a poorly performing portfolio – they have enough resources to cut their losses and move on. Historically, banks have been reticent to foreclose high-end homes and absorb a large loss, but defaulters are now forcing their hands and mansion foreclosure rates are moving on up.

Myths control behavior, and this has never been truer than in the housing market. Savvy agents will work hard to educate their clients, debunk myths, explain market trends, educate with solid facts – and actually close transactions.

5 Foreclosure Myths for 2012

5 Foreclosure Myths for 2012

There is a lot of “urban legend” circulating when it comes to foreclosures and the current state of the real estate market.  The steals and deals are gone, but you can still get a great buy an on a good home.  Here are some important things to be aware of in the foreclosure market

Foreclosure Data from the Cromford Report & The Information Market

It is my belief that, The Cromford Report & The Information Market, offer you the best, most reliable and real numbers about our housing market.

Default Properties: The status of a property currently within the Foreclosure process after the Bank records a Notice of Trustee Sale due to lack of borrower making payments for at least 90 days. Properties remain in this status until there is a recorded Trustee Sale or Cancellation of Trustee Sale.
• At the end of December 2011, there were 18,347 Active Default Residential Properties. This is down by 1662 units from the previous month when there were 20,009 Active Default Residential Properties. This is the 13th consecutive month that we have seen decreases in the number of Active Notices. FYI: The All-Time high was in December of 2009 when there were 47,606 Active Default Residential Properties.

Foreclosures: When the Bank either sells the property at the Trustee Sale (Auction) or takes the property back via Trustee’s Deed.
• Foreclosures hit an All-Time, one-month high in March 2010 with 5,451. Last month, there were 2,714 Foreclosures. This was up by 279 units from November.

REO Properties: Properties that the bank owns due to lack of sale at the Trustee Sale (Auction).
• There are currently 9,010 Residential REO Properties – vs. last month when there were 9,870. This is a drop of 860 REO units in one month! In December 2010, there were 18,889 REO Properties – so we are down by 47% from then. There are approximately 1,956 REO Properties listed in the MLS, with an additional 2,477 REO Properties that are in Pending Status in the MLS. This means that there are approximately 4,577 REO Properties that are Foreclosed on, but have not yet been listed in the MLS.

If you have any questions or would like to meet with me to discuss market conditions or your real estate needs please give me a call at 602-321-1693 or send an e-mail to susan@susantalarico.com

LED Holiday Lights: 6 Need-to-Know Tips

5 Reasons to Write the Offer Today

5 Reasons Why You Should Write the Offer Today

Some very sound advice on why your client should not “sleep on it” before writing the offer.  Despite a difficult market, he who hesitates is lost.  Often times a client believes that if the home has been on the market “this long”, it won’t go anywhere in one day.  Too many times I have seen a buyer lose the home they had as their first choice because they decided to “sleep on it.”.  If you like, want it and need to have it…make the offer TODAY!

Via Tni LeBlanc REALTOR® Santa Maria Homes Central Coast:

5 Reasons Why You Should Write the Offer Today

Do you really need to write the offer today? As an experienced real estate agent, I must confirm that I have seen people lose the house of their dreams because they hesitated just one day.  Yes, just one measly day. I hate that this market demands that buyers make decisions so quickly, but it is my job to let you know what the market is actually like.  The last thing I ever want to do is to rush any client.  But I’ve also seen the disappointment that can result when someone misses out on a truly exceptional home.  And, in almost any kind of market a well priced desirable home will move FAST.

So, you should be aware that even if you are not willing to act swiftly, your competition for the home may be.  It’s pretty devastating to lose a great house because the offer did not get in fast enough, but it does happen – more often than you think. On the flip side, I have also had my clients win out because other buyers have hesitated and they did not.   Accordingly, when the house is the right house, I do encourage my clients to act swiftly.

The following are five reasons why it may be important for you to write the offer today:

1) Avoiding a bidding war / Getting a better price. Sometimes if you get an offer in quickly, you will be able to get it accepted quickly at a slightly lower price than if you waited and the situation became a bidding war.  I’ve seen this often with REOs (foreclosures).  I’ve won out on many desirable REOs because my client’s offer is the first offer, gets put into the computer portal that evening before the REO agent leaves the office that afternoon, and the next morning when they check their email, it is already accepted.  Gone.  My client is celebrating as the 10 other higher offers that poured in that evening and the next day are put aside. 

2) They just did a price reduction. When a seller does a price reduction it is highlighted for those searching for a home.  In our area, an automatic email alert will be sent to buyers who are actively looking for that type of home, and the home will appear in the “hot sheet” search that most buyer’s agents run first thing every morning.  Even a modest price reduction can dramatically increase the attention that a listing receives.  If the price is now appealing, or you think the owner will now be receptive to your offer, get your offer in quickly before someone else has the same idea.

3) Your offer may deter other buyers. Buyers dislike bidding wars, so many will shy away from a home with an offer already on it.  In our current market, buyers are expecting bidding wars on REOs; however, on short sales or traditional sales, often the presence of another offer will still make buyers and their agents shy away.  Accordingly, your early offer may keep others from even bidding.  (Note this does not hold true for low ball offers, if you submit a low ball offer, the listing agent will simply tell other buyer’s agents that the offer they have in hand is low and it will not generally deter other buyers from bidding.)

4) Eager can be a good thing. Sometimes buyers don’t want to seem eager.  They don’t want to come off like they want the home too badly.  However, while playing “hard to get” may be an effective strategy for some personal relationships, I don’t think it translates as well into the home buying arena.   After all, most people don’t spend hundreds of thousands of dollars for homes they are indifferent to, so if you write an offer today or write it tomorrow they are still going to assume that you want the home. Also an experienced listing agent will encourage a seller to take a solid offer from the most motivated buyer.  Being the first to arrive conveys that you are motivated.  Accordingly, writing the offer today on a well priced desirable home can indeed be a smart move.

5) Logistics matter. An offer doesn’t magically appear in front of the seller.  For an REO (foreclosure), waiting until Friday to submit an offer means that your offer probably has to withstand weekend buyer traffic and interest, because the asset managers that consider those offers often don’t often work weekends or holidays, or the REO listing agent may simply not input offers until Monday.  In a sale where a “real” seller is responding, you can (and probably should) limit the time period that the offer can be considered to speed along getting an answer from the seller.  However, how soon it will be presented or responded to will still be dependent on the situation.   If you write the offer today, and I find out the listing agent is meeting with the seller in 30 minutes, I can send it right over.  If the offer is not already signed and in my hand, I won’t be able to take advantage of that information.  These minor details matter and, I believe sway in favor of being fast and first in many cases.  I’ve even beat out another offer by being the first offer faxed to an out of town seller because they didn’t want to pay to receive another fax the next day.  The offers were about equivalent so they just accepted my clients.  It happens.

If you are looking for a home in today’s competitive Santa Maria or Orcutt real estate market, you need an experienced real estate agent to guide you through the process so that you have a successful home buying experience.  Call my office today to set up a consultation and begin the process of buying the home of your dreams.

Tni LeBlanc, Mint Properties
(805) 878-9879
Real Estate Broker/Attorney
CA DRE License # 01871795

Serving Santa Maria, Orcutt, Nipomo, Los Alamos, Santa Ynez, Los Olivos, Solvang, Buellton, Lompoc, Vandenberg Village, Arroyo Grande, Grover Beach, Pismo Beach, and Avila Beach.

Copyright © Tni LeBlanc 2011 *5 Reasons Why You Should Write the Offer Today*