Over the past 60 days, foreclosed properties on the market have brought about 2 developments in the market: they have increased the volume of transactions taking place and decreased the average sales price of the transaction.
The OC Register reports recently;
"Bargain-basement sales helped pull down home prices in the SoCal region last month and boosted the number of transactions by a record 67%, DataQuick reported today.
The median price of a Southern California home fell to $300,000 in October — the lowest since April 2003 and down 41% below the peak price hit in the spring and summer of 2007.
The record gain in sales was attributable to very weak sales last year and high foreclosures this year."
Banks have started to look realistically at pricing foreclosed properties and entertaining short sales. This means better opportunities for buyers and more flexibility for sellers trying to get out of a distressed situation.
Tuesday, November 18, 2008
Monday, November 3, 2008
Halloween Weekend Update
Happy Halloween weekend,
This has been an active week in the real estate and finance markets. Here is the latest information for your review:
1. The Fed Has Reduced Interest Rates - again. The Fed reduced the Fed funds rate, which impacts variable lending rates, to 1%. This is the lowest since 2001 and will reduce payments on home equity lines and credit cards. The Fed is doing whatever they can to encourage economic growth by enticing businesses to start to borrow money to expand and encouraging banks to lend to them more freely.
2. September Sales Volumes Way Up. Orange County September real estate sales increased about 62% versus sales data from one year ago. Sales volume is still down versus historic numbers. Sales volume has increased by double digits for 3 straight months - July-September. This has not impacted sales prices, which remain lower.
3. Short Sales and REO's ARE closing. A large part of the transactions in the marketplace right now are bank-owned homes(REO's) and short-sales. Buyers are taking advantage of aggressive bank pricing and the bank's are starting to work with sellers who need to complete short-sales to get out of their homes. Not all short-sales are going through - we can help you qualify the right ones to pursue. Banks are getting multiple offers on homes/condos when they are priced right.
4. No One Can Predict The Bottom - on any street. Economists on Wall Street and Analysts on Main Street all agree that no one can predict the bottom of the real estate and stock markets. What they DO all agree on is that in both markets, there remains clear opportunities for long-term buyers. Buyers are purchasing homes/condos in many markets for 50-70 cents on the dollar versus where prices were a couple years ago. This not a consistent number however - some markets have more inventory and are getting hit harder than others.
5. Our MLS system provides access to ALL properties in 4 surrounding counties. Our MLS is now consolidated to include Orange, San Diego, Riverside and LA County - we can access information on any short-sale, foreclosure or traditional sale in those areas.
I hope everyone had a great Halloween weekend!
This has been an active week in the real estate and finance markets. Here is the latest information for your review:
1. The Fed Has Reduced Interest Rates - again. The Fed reduced the Fed funds rate, which impacts variable lending rates, to 1%. This is the lowest since 2001 and will reduce payments on home equity lines and credit cards. The Fed is doing whatever they can to encourage economic growth by enticing businesses to start to borrow money to expand and encouraging banks to lend to them more freely.
2. September Sales Volumes Way Up. Orange County September real estate sales increased about 62% versus sales data from one year ago. Sales volume is still down versus historic numbers. Sales volume has increased by double digits for 3 straight months - July-September. This has not impacted sales prices, which remain lower.
3. Short Sales and REO's ARE closing. A large part of the transactions in the marketplace right now are bank-owned homes(REO's) and short-sales. Buyers are taking advantage of aggressive bank pricing and the bank's are starting to work with sellers who need to complete short-sales to get out of their homes. Not all short-sales are going through - we can help you qualify the right ones to pursue. Banks are getting multiple offers on homes/condos when they are priced right.
4. No One Can Predict The Bottom - on any street. Economists on Wall Street and Analysts on Main Street all agree that no one can predict the bottom of the real estate and stock markets. What they DO all agree on is that in both markets, there remains clear opportunities for long-term buyers. Buyers are purchasing homes/condos in many markets for 50-70 cents on the dollar versus where prices were a couple years ago. This not a consistent number however - some markets have more inventory and are getting hit harder than others.
5. Our MLS system provides access to ALL properties in 4 surrounding counties. Our MLS is now consolidated to include Orange, San Diego, Riverside and LA County - we can access information on any short-sale, foreclosure or traditional sale in those areas.
I hope everyone had a great Halloween weekend!
Saturday, November 1, 2008
Orange County Real Estate Blog
Welcome to our real estate blog for real estate, finance and investment topics.
At Grange and Associates, we work with buyers, sellers and investors throughout Orange County in facilitating residential real estate transactions for homes, condos, land and apartment buildings.
We will close between 30-60 transactions per year and consistently rank among the top 1% of realtors nationwide.
I hope that you will find this blog helpful for learning more about the real estate markets and provide an open forum where you can exchange ideas or ask questions at anytime.
You can learn more about any of our listings at anytime on our web site at: www.grangerealty.com or contact me directly at: sgrange@starrealestate.com
Thank you for taking the time to visit this blog and I look forward to hearing from you and working with you.
Regards,
Sean Grange
Director of Sales
Grange & Associates
Star Real Estate
At Grange and Associates, we work with buyers, sellers and investors throughout Orange County in facilitating residential real estate transactions for homes, condos, land and apartment buildings.
We will close between 30-60 transactions per year and consistently rank among the top 1% of realtors nationwide.
I hope that you will find this blog helpful for learning more about the real estate markets and provide an open forum where you can exchange ideas or ask questions at anytime.
You can learn more about any of our listings at anytime on our web site at: www.grangerealty.com or contact me directly at: sgrange@starrealestate.com
Thank you for taking the time to visit this blog and I look forward to hearing from you and working with you.
Regards,
Sean Grange
Director of Sales
Grange & Associates
Star Real Estate
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